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REGISTERED NUMBER: 01221157 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

FOR

SIGMA CONNECTED LTD

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 7

Statement of Profit or Loss and Other Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 15


SIGMA CONNECTED LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 30 APRIL 2024







DIRECTORS: M J Harfield
G E Gilburd


SECRETARY: Industrial & Commercial Consultancy Ltd


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


REGISTERED NUMBER: 01221157 (England and Wales)


SENIOR STATUTORY AUDITOR: Glenn Armon-Jones


INDEPENDENT AUDITORS: Barrow LLP
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 LTD (REGISTERED NUMBER: 01221157)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their strategic report for the year ended 30 April 2024.

BUSINESS REVIEW AND FUTURE OUTLOOK
Sigma Connected Limited is a wholly owned subsidiary of Sigma Connected Holdings Limited.

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 £94.8m, an increase of 24% on prior year.

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 £4.1m 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 and diversify the business.

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 £94,863,460 (2023: £76,372,919) and a profit before tax of £7,236,681 (2023: £1,514,788).

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

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

Liquidity risk
Liquidity risk relates to the company'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.


SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024


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

Commercial relationships
The company'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 company responds to their needs and delivers the service levels that they expect.

Regulatory compliance
Failing to comply with regulatory requirements could result in the company having to suspend or permanently cease activities. The company 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 risk
Personnel risk focuses on the ability of the company to attract and retain skilled individuals to deliver its growth plans. The company employment policies, remuneration and benefits packages are regularly reviewed to ensure that they remain competitive with other companies. The company also monitors employees to identify high performing individuals and ensure that they are developed and progressed within the company.

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 company'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 company, for 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 Sigma Connected 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 company. The differing interests of stakeholders are considered in the business decisions we make across the company, 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 company operates an equal opportunities employment policy and is opposed to all forms of discrimination. The company 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 company continues and appropriate training arranged. So far as possible the company 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.


SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024


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.

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 business 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 Company
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 company 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 LTD (REGISTERED NUMBER: 01221157)

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.

10 (2023: 12) new client relationships were secured during the year.

ON BEHALF OF THE BOARD:





G E Gilburd - Director


21 October 2024

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024

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

PRINCIPAL ACTIVITIES
The principal activity of the company during the year was the provision of Business Process Outsourcing "BPO" services.

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.

M J Harfield
G E Gilburd

DONATIONS
During the year, the company 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 company also maintained Directors' and Officers' liability insurance during the year in respect of itself and its directors.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





G E Gilburd - Director


21 October 2024

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

Opinion
We have audited the financial statements of Sigma Connected Ltd (the 'company') for the year ended 30 April 2024 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the 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 company's affairs as at 30 April 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with IFRSs as adopted by the UK; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period 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 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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


Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 company and the industry in which it operates, and considered the risk of acts by the company 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 company 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 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
Jackson House
Station Road
Chingford
London
E4 7BU

21 October 2024

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

30.4.24 30.4.23
Notes £    £   

CONTINUING OPERATIONS
Revenue 94,863,460 76,372,919

Cost of sales (72,239,716 ) (61,186,510 )
GROSS PROFIT 22,623,744 15,186,409

Administrative expenses (15,405,029 ) (13,756,593 )
OPERATING PROFIT BEFORE IMPAIRMENT
GAINS / (LOSSES)

7,218,715

1,429,816

Impairment gains / (losses) - 98,593
OPERATING PROFIT 7,218,715 1,528,409

Finance costs 5 (87,250 ) (30,728 )

Finance income 5 105,216 17,107
PROFIT BEFORE INCOME TAX 6 7,236,681 1,514,788

Income tax 7 (347,216 ) (1,618 )
PROFIT FOR THE YEAR 6,889,465 1,513,170

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

6,889,465

1,513,170

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

STATEMENT OF FINANCIAL POSITION
30 APRIL 2024

30.4.24 30.4.23
Notes £    £   
ASSETS
NON-CURRENT ASSETS
Owned
Property, plant and equipment 8 668,965 1,058,717
Right-of-use
Property, plant and equipment 8, 16 898,969 288,584
Loans and other financial assets 9 79,100 -
Trade and other receivables 10 - 243,055
1,647,034 1,590,356
CURRENT ASSETS
Trade and other receivables 10 25,252,808 21,341,936
Cash and cash equivalents 11 4,110,480 298,556
29,363,288 21,640,492
TOTAL ASSETS 31,010,322 23,230,848
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 12 2,775,100 2,775,100
Retained earnings 13 13,151,325 6,261,860
TOTAL EQUITY 15,926,425 9,036,960
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - borrowings
Interest bearing loans and borrowings 15 741,383 182,209
CURRENT LIABILITIES
Trade and other payables 14 8,931,761 8,028,686
Financial liabilities - borrowings
Interest bearing loans and borrowings 15 5,061,919 5,981,375
Tax payable 348,834 1,618
14,342,514 14,011,679
TOTAL LIABILITIES 15,083,897 14,193,888
TOTAL EQUITY AND LIABILITIES 31,010,322 23,230,848


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 LTD (REGISTERED NUMBER: 01221157)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 May 2022 2,775,100 4,748,690 7,523,790

Changes in equity
Total comprehensive income - 1,513,170 1,513,170
Balance at 30 April 2023 2,775,100 6,261,860 9,036,960

Changes in equity
Total comprehensive income - 6,889,465 6,889,465
Balance at 30 April 2024 2,775,100 13,151,325 15,926,425

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

30.4.24 30.4.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 5,302,483 (1,786,386 )
Interest paid (19,335 ) -
Lease interest paid (67,915 ) (30,728 )
Net cash from operating activities 5,215,233 (1,817,114 )

Cash flows from investing activities
Purchase of tangible fixed assets (1,338,569 ) (752,382 )
Sale of tangible fixed assets 269,426 -
Loans to fellow subsidiaries (79,100 ) -
Interest received 105,216 17,107
Net cash from investing activities (1,043,027 ) (735,275 )

Cash flows from financing activities
Loan repayments in year (1,000,000 ) -
Group loans raised - 1,500,000
Lease liabilities 639,718 (207,530 )
Net cash from financing activities (360,282 ) 1,292,470

Increase/(decrease) in cash and cash equivalents 3,811,924 (1,259,919 )
Cash and cash equivalents at beginning of
year

2

298,556

1,558,475

Cash and cash equivalents at end of year 2 4,110,480 298,556

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

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

30.4.24 30.4.23
£    £   
Profit before income tax 7,236,681 1,514,788
Depreciation charges 834,628 1,051,817
Loss on disposal of fixed assets 13,882 335,276
Finance costs 87,250 30,728
Finance income (105,216 ) (17,107 )
8,067,225 2,915,502
Increase in trade and other receivables (2,119,161 ) (5,026,448 )
(Decrease)/increase in trade and other payables (645,581 ) 324,560
Cash generated from operations 5,302,483 (1,786,386 )

2. CASH AND CASH EQUIVALENTS

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

Year ended 30 April 2024
30.4.24 1.5.23
£    £   
Cash and cash equivalents 4,110,480 298,556
Year ended 30 April 2023
30.4.23 1.5.22
£    £   
Cash and cash equivalents 298,556 1,558,475

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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


1. STATUTORY INFORMATION

Sigma Connected 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 Company 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.

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

Going concern
The company'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 company will continue to operate on a going concern basis within the available facilities. Consequently, the directors are of the opinion that the company 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.

Furthermore, the directors have assessed that there are no significant uncertainties that could raise substantial doubts regarding the company'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 company, nor are there any structural changes required to maintain its status as a going concern. Additionally, there are no intentions to cease the company's operations within the next twelve months from the date of the approval of the financial statements.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

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 company 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 company 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 company has satisfied its performance obligations to the customer.

Most of the company'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 company 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.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

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.

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

The useful lives of items of property, plant and equipment have been assessed as follows:

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

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

Financial instruments
Initial recognition and measurement

Financial instruments held by the company are classified in accordance with the provisions of IFRS 9 Financial Instruments. Broadly, the classification possibilities which are adopted by the company 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.

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

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 company'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.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

Recognition and measurement

Loans receivable are recognised when the company 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 company 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.

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 company 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 company 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 company 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 company 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.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

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

If the company 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 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 company'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.

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 company 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 company measures the loss allowance for trade and other receivables at an amount equal to the lifetime 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

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.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

Impairment

For financial assets carried at amortised cost, with the exception of trade receivables, the company 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 company 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 company does not have financial liabilities through profit or loss in accordance with IFRS 9.

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 company'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 company, 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 company'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.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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 Company 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 Company sales) are excluded from the initial measurement of the lease liability and asset. The Company 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 company. 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 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 company under residual value guarantees;
- the exercise price of a purchase option if the company is reasonably certain to exercise that option.

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

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

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;
- restoration costs.

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 Company 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 a 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 company operates defined contribution schemes. Contributions payable to the company'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 the amount of the provision.

Provisions are not recognised for future operating leases.

Contingent assets and contingent liabilities are not recognised.

Impairment of property, plant and equipment and other tangible assets
The company 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 company 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 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 company 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.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

2. ACCOUNTING POLICIES - continued

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.

New standards and interpretations
In the current year, the company 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.

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 financial statements.


SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

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 company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the company'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.

Trade receivables
Trade receivables are impaired using the simplified approach in terms of IFRS 9. Expected credit losses 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 company as trade receivables do not contain a financing component. The default terms of collection is 60 days. In accordance with the model, lifetime expected credit losses (ECL) 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 company 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 company 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 company 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 company 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 company 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 company to realise the net deferred tax assets recorded at the end of the reporting period could be impaired.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

4. EMPLOYEES AND DIRECTORS
30.4.24 30.4.23
£    £   
Wages and salaries 44,340,893 40,099,720
Social security costs 3,848,068 3,365,126
Other pension costs 1,003,677 849,044
49,192,638 44,313,890

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

Fee earner 1,524 1,548
Administration 66 56
Direct support 173 163
1,763 1,767

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

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
Directors' loan interest 713 750
105,216 17,107
Finance costs:
Bank interest 19,335 -
Leasing interest 67,915 30,728
87,250 30,728

Net finance income 17,966 (13,621 )

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

6. PROFIT BEFORE INCOME TAX

The profit before income tax is stated after charging/(crediting):
30.4.24 30.4.23
£    £   
Depreciation - owned assets 653,446 844,287
Depreciation - assets on finance leases 181,182 207,530
Loss on disposal of fixed assets 13,882 335,276
Auditors' remuneration 37,561 38,200
Auditors' remuneration for non audit work 4,000 8,000
Foreign exchange differences (6,877 ) (44,372 )

7. INCOME TAX

Analysis of tax expense
30.4.24 30.4.23
£    £   
Current tax:
Tax 347,216 1,618
Total tax expense in statement of profit or loss and other comprehensive income 347,216 1,618

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 7,236,681 1,514,788
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19.493%)

1,809,170

295,278

Effects of:
Expenses not deductible for tax purposes 29,744 9,472
Losses (1,490,080 ) (300,513 )
Tax rate changes - (2,619 )
Adjustment in respect of prior year (1,618 ) -
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 company'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.

DEFERRED TAX
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 2024 is therefore re-measured at 25% on 30 April 2024 (2023: 25%), dependent on the company's expected profits.

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

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

7. INCOME TAX - continued

Tax losses and temporary differences
The company offsets tax assets and liabilities if and only if it has a legally enforceable right to offset 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 company has corporation tax losses that arose before 1 April 2017 in the United Kingdom of £3,759,135 (2023 - £10,364,794) 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 company. The total amount of unprovided deferred tax £939,784 (2023: £10,364,794) is as follows:

30.04.2430.04.23
£   £   
Fixed asset timing differences81,363159,195
Timing difference - trading(21,511)(19,018)
Losses879,9322,451,022
Total deferred tax asset939,7842,591,199

8. PROPERTY, PLANT AND EQUIPMENT
Right-of-use
Property, Fixtures
plant and Short and Computer
equipment leasehold fittings equipment Totals
£    £    £    £    £   
COST
At 1 May 2023 450,809 128,191 99,956 2,427,149 3,106,105
Additions 1,057,611 - 29,447 251,511 1,338,569
Disposals (450,809 ) - (11,106 ) (251,920 ) (713,835 )
At 30 April 2024 1,057,611 128,191 118,297 2,426,740 3,730,839
DEPRECIATION
At 1 May 2023 162,225 128,191 88,991 1,379,397 1,758,804
Charge for year 181,182 - 8,704 644,742 834,628
Eliminated on disposal (184,765 ) - (7,294 ) (238,468 ) (430,527 )
At 30 April 2024 158,642 128,191 90,401 1,785,671 2,162,905
NET BOOK VALUE
At 30 April 2024 898,969 - 27,896 641,069 1,567,934
At 30 April 2023 288,584 - 10,965 1,047,752 1,347,301

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.

9. LOANS AND OTHER FINANCIAL ASSETS

Loans to
group
undertakings
£   
New in year 79,100
At 30 April 2024 79,100

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

10. TRADE AND OTHER RECEIVABLES

30.4.24 30.4.23
£    £   
Current:
Trade debtors 13,872,046 14,048,429
Amounts owed by group undertakings 1,564,719 28,976
Amounts recoverable on contract 275,463 226,852
Other debtors 11,191 60,548
Directors' loan accounts 30,000 30,000
Prepayments and accrued income 9,499,389 6,947,131
25,252,808 21,341,936

Non-current:
Amounts recoverable
on contract - 243,055
- 243,055

Aggregate amounts 25,252,808 21,584,991

The company 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 company 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.

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

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

11. CASH AND CASH EQUIVALENTS

30.4.24 30.4.23
£    £   
Bank accounts 4,110,480 298,556

12. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.4.24 30.4.23
value: £    £   
2,775,100 Ordinary shares £1 2,775,100 2,775,100

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

13. RESERVES
Retained
earnings
£   

At 1 May 2023 6,261,860
Profit for the year 6,889,465
At 30 April 2024 13,151,325


14. TRADE AND OTHER PAYABLES

30.4.24 30.4.23
£    £   
Current:
Trade creditors 541,006 1,648,626
Amounts owed to group undertakings 2,722,242 1,220,290
Other taxation and social security 3,154,759 3,246,521
Other creditors 336,591 311,506
Accruals and deferred income 2,177,163 1,601,743
8,931,761 8,028,686

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.

15. FINANCIAL LIABILITIES - BORROWINGS

30.4.24 30.4.23
£    £   
Current:
Amounts owed to group
undertakings – Loans 4,875,000 5,875,000
Leases (see note 16) 186,919 106,375
5,061,919 5,981,375

Non-current:
Leases (see note 16) 741,383 182,209

Terms and debt repayment schedule

1 year or
less 1-2 years Totals
£    £    £   
Amounts owed to group
undertakings – Loans 4,875,000 - 4,875,000
Leases 186,919 741,383 928,302
5,061,919 741,383 5,803,302

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

15. FINANCIAL LIABILITIES - BORROWINGS - continued

Loan from ultimate UK parent company
The loan of £4,875,000 (2023: £4,875,000) from the ultimate UK parent company is not of a commercial nature and therefore interest-free, with no fixed repayment terms. The loan is intended to provide the company a source of funding. The parent company can recall these loans when cash is required.

Loan to fellow group subsidiary
The loan of £72,296 (2023: £Nil) paid to fellow subsidiary company Sigma Connected Proprietary Ltd is not of a commercial nature and therefore interest-free, with no fixed repayment terms. The loan is intended to provide the company a source of funding. The company can recall these loans as and when required.

The loan of £6,804 (2023: £Nil) paid to fellow subsidiary company Sigma Connected US LLC is not of a commercial nature and therefore interest-free, with no fixed repayment terms. The loan is intended to provide the company a source of funding. The company can recall these loans as and when required.

16. LEASING

Right-of-use assets

Property, plant and equipment

30.4.24 30.4.23
£    £   
COST OR VALUATION
At 1 May 2023 450,809 1,963,364
Additions 1,057,611 -
Disposals (450,809 ) (1,512,555 )
1,057,611 450,809

DEPRECIATION
At 1 May 2023 162,225 1,467,250
Charge for year 181,182 207,530
Eliminated on disposal (184,765 ) (1,512,555 )
158,642 162,225

NET BOOK VALUE 898,969 288,584

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

16. LEASING - continued

Lease liabilities

Minimum lease payments fall due as follows:

30.4.24 30.4.23
£    £   
Gross obligations repayable:
Within one year 262,967 121,733
Between one and five years 854,642 188,949

1,117,609 310,682

Finance charges repayable:
Within one year 76,048 15,358
Between one and five years 113,259 6,740
189,307 22,098

Net obligations repayable:
Within one year 186,919 106,375
Between one and five years 741,383 182,209
928,302 288,584

17. PENSION COMMITMENTS

The company operates defined contribution pension schemes in respect of the 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.

18. CONTINGENT LIABILITIES

The contingent liability pertains to employee claims related to employment matters. At this juncture, the exact timeline for resolution and the financial implications remains indeterminate. The company refute the disputed claims and perceives any potential settlement as bearing a minimal risk.

19. 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 company by the director for which, interest at 2.5% per annum is charged by the company.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

20. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity

Sigma Connected Holdings Ltd
Holding company

During the year the company sold services in the sum of £Nil (2023: £539,474) to Sigma Connected Holdings Ltd.

During the year the company received management services of £29,857 (2023: £Nil) from Sigma Connected Holdings Ltd.

At 30 April 2024 the company owed £29,857 (2023: £Nil) to Sigma Connected Holdings Ltd in relation to management services received.

At 30 April 2024 the company owed £4,875,000 (2023: £4,875,000) to Sigma Connected Holdings Ltd in relation to loan funding provided.

Sigma Connected (PTY) Limited (SA)
Fellow Subsidiary

During the year the company purchased services in the sum of £26,477,378 (2023: £19,167,388) from Sigma Connected (PTY) Limited.

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

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

At 30 April 2024 the company had an amount owed to Sigma Connected (PTY) Limited of £2,563,737 (2023: £552,932) relating to recharge of costs.

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

Sigma Connected Group Ltd
Immediate holding company

At 30 April 2024, £15,855 (2023: £15,855) was owed by Sigma Connected Group Ltd in relation to intercompany charges.

Digicall Management Services (Pty) Ltd
Fellow Subsidiary

During the year the company received management services of £414,751 (2023: £387,654) from Digicall Management Services (Pty) Ltd.

At 30 April 2024 the company had an amount owed to Digicall Management Services (Pty) Ltd of £34,057 (2023: £426,872) relating to provision of management services.

At 30 April 2024 the company had an amount owed by Digicall Management Services (Pty) Ltd of £1,656 (2023: £Nil) relating to provision of management services.

SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

20. RELATED PARTY DISCLOSURES - continued

Blue Pie Services (Pty) Ltd
Fellow Subsidiary

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

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

Entities with control, joint control or significant influence by the entity

Sanclare (UK) Ltd
Fellow Subsidiary

At 30 April 2024 the company had an amount owed by Sanclare (UK) Ltd of £19,169 (2023: £19,169) owing to the transfer of assets, liabilities and commercial relationships owned by Sanclare (UK) Ltd. The balance has been fully impaired (2023: fully) due to concerns over its recoverability.

Sigma Red Ltd
Fellow Subsidiary

At 30 April 2024 the company had an amount owed by Sigma Red Ltd of £8,913,029 (2023: £8,913,029) owing to the transfer of assets, liabilities and commercial relationships owned by Sigma Red Ltd. The balance has been fully impaired (2023: fully) due to concerns over its recoverability.

Sigma Connected Proprietary Limited (AUS)
Fellow Subsidiary

The company paid a loan of £376,965 (2023: £799,351) to Sigma Connected Proprietary Limited, all but £72,295 has been repaid.

During the year the company provided services of £1,030,615 (2023: £102,049) to Sigma Connected Proprietary Limited.

During the year the company bought assets and management services of £1,471,882 (2023: £1,069,287) from Sigma Connected Proprietary Limited.

During the year the company received management services of £301,914 (2023: £897,944) from Sigma Connected Proprietary Limited.

At 30 April 2024 the company had an amount owing to Sigma Connected Proprietary Limited of £207 (2023: £82,473) relating to recharge of costs. The company had an amount owing from Sigma Connected Proprietary Limited of £Nil (2023: £13,121) relating to recharge of costs.

Recodebt Ltd
Fellow Subsidiary

At 30 April 2024 the company had an amount owing to Recodebt Ltd of £94,592 (2023: £94,592) relating to recharge of costs.

Sigma Connected US LLC (USA)
Fellow Subsidiary

The company paid a loan of £54,414 to Sigma Connected US LLC, all but £6,803 has been repaid.

During the year the company received management services of £47,611 from Sigma Connected US LLC.


SIGMA CONNECTED LTD (REGISTERED NUMBER: 01221157)

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

20. RELATED PARTY DISCLOSURES - continued

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 company. 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 company. 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 £1,943,683 (2023: £1,244,639).

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Digicall Holdings (Pty) Ltd, a company incorporated in South Africa.

The controlling party is Sigma Connected Group Limited.

The immediate parent undertaking is Sigma Connected Holdings Limited.

Sigma Connected Holdings Limited is the parent undertaking of the largest and smallest group of undertakings to consolidate these financial statements at 30 April 2024. The consolidated financial statements of Sigma Connected Holdings Limited are available from:

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