Company registration number SC425978 (Scotland)
SILVER CLOUD SMARTER TECHNOLOGY LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SILVER CLOUD SMARTER TECHNOLOGY LTD
CONTENTS
Page
Balance sheet
2 - 3
Notes to the financial statements
4 - 10
SILVER CLOUD SMARTER TECHNOLOGY LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of using technology to connect people and businesses. Historically, this has centred around telecommunications and IT, but we have expanded to now offer interrelated secure Cyber products and services.

 

The Company's strategic focus remains on investing in new products and services that drive the growth of recurring revenues. A notable investment during the year was a significant six-figure sum dedicated to developing the Company's cyber security division, a high-growth area. While this strategic initiative has impacted profitability in the financial year ending 31 December 2023, it positions the business for future gains. The Directors are confident that the investment in cybersecurity will generate considerable long-term value. Despite this, the underlying business performed strongly, with recurring revenues growing by 34% since 31 December 2022 (31% in 2022).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Quinn
S Smith
N Begg
P Slee
M Wright
(Resigned 11 April 2023)
M Robertson
(Appointed 20 July 2023)
K Robertson
(Appointed 20 July 2023)
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
A Quinn
Director
19 November 2024
SILVER CLOUD SMARTER TECHNOLOGY LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
97,562
48,294
Tangible assets
5
118,557
125,988
Investments
6
1
-
0
216,120
174,282
Current assets
Stocks
78,182
102,050
Debtors
7
1,132,103
1,005,900
Cash at bank and in hand
690,238
714,379
1,900,523
1,822,329
Creditors: amounts falling due within one year
8
(1,486,024)
(1,004,690)
Net current assets
414,499
817,639
Total assets less current liabilities
630,619
991,921
Creditors: amounts falling due after more than one year
9
(34,511)
(123,482)
Provisions for liabilities
(48,276)
(41,511)
Net assets
547,832
826,928
Capital and reserves
Called up share capital
10
235
235
Share premium account
11
493,320
493,320
Capital redemption reserve
35
35
Profit and loss reserves
54,242
333,338
Total equity
547,832
826,928

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

SILVER CLOUD SMARTER TECHNOLOGY LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 19 November 2024 and are signed on its behalf by:
A Quinn
Director
Company Registration No. SC425978
SILVER CLOUD SMARTER TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information

Silver Cloud Smarter Technology Ltd is a private company limited by shares incorporated in Scotland. The registered office is The Exchange, 130 Cubie Street, Glasgow, G40 2AF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received, net of VAT, for goods and services of the sale of telecommunications, IT services, cyber security services and maintenance.

1.3
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Licences
20% Straight Line
Re-Branding
50% Straight line
1.4
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
25% Straight line
Office Equipment
33% Straight line
Plant and machinery
50% Straight line
Motor vehicles
20% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

SILVER CLOUD SMARTER TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Stocks

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

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

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SILVER CLOUD SMARTER TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.10
Equity instruments

For cash-settled share-based payments, a liability is recognised for the goods and services acquired, measured initially at the fair value of the liability. At the balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit or loss for the year.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

SILVER CLOUD SMARTER TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
45
39
SILVER CLOUD SMARTER TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Intangible fixed assets
Licences
Re-Branding
Total
£
£
£
Cost
At 1 January 2023
79,248
-
0
79,248
Additions
61,636
11,138
72,774
At 31 December 2023
140,884
11,138
152,022
Amortisation and impairment
At 1 January 2023
30,954
-
0
30,954
Amortisation charged for the year
21,650
1,856
23,506
At 31 December 2023
52,604
1,856
54,460
Carrying amount
At 31 December 2023
88,280
9,282
97,562
At 31 December 2022
48,294
-
0
48,294
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
460,512
Additions
83,203
At 31 December 2023
543,715
Depreciation and impairment
At 1 January 2023
334,524
Depreciation charged in the year
90,634
At 31 December 2023
425,158
Carrying amount
At 31 December 2023
118,557
At 31 December 2022
125,988
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1
-
0
SILVER CLOUD SMARTER TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Fixed asset investments
(Continued)
- 9 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
-
Additions
1
At 31 December 2023
1
Carrying amount
At 31 December 2023
1
At 31 December 2022
-

The investment relates to the share capital of Acumen Cyber Ltd (SC786217), a company registered in Scotland on 17 October 2023

7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
542,979
428,414
Corporation tax recoverable
51,983
41,468
Other debtors
182,119
357,155
Prepayments and accrued income
355,022
178,863
1,132,103
1,005,900
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
41,000
41,000
Obligations under finance leases
6,971
6,971
Trade creditors
413,761
235,055
Amounts owed to group undertakings
1
-
0
Corporation tax
10,515
-
0
Other taxation and social security
329,629
194,078
Other creditors
106,906
87,794
Accruals and deferred income
577,241
439,792
1,486,024
1,004,690

The bank loans are secured by a bond and floating charge in favour of the Bank of Scotland.

SILVER CLOUD SMARTER TECHNOLOGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
9
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17,083
99,083
Obligations under finance leases
17,428
24,399
34,511
123,482

The bank loans are secured by a bond and floating charge in favour of the Bank of Scotland.

10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
2,347
2,347
235
235
11
Share premium account
2023
2022
£
£
At the beginning and end of the year
493,320
493,320
12
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
83,231
136,011
13
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
DLA
2.25
131,575
29,086
3,014
(3,150)
160,525
131,575
29,086
3,014
(3,150)
160,525
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