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COMPANY REGISTRATION NUMBER: 10973790
Red Seven Technology Group Limited
Financial Statements
30 November 2023
Red Seven Technology Group Limited
Financial Statements
Period from 1 October 2022 to 30 November 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
7
Independent auditor's report to the members
10
Consolidated statement of comprehensive income
14
Consolidated statement of financial position
15
Company statement of financial position
17
Consolidated statement of changes in equity
19
Company statement of changes in equity
20
Consolidated statement of cash flows
21
Notes to the financial statements
22
Red Seven Technology Group Limited
Officers and Professional Advisers
The board of directors
Mr P Crooks (Resigned 6 December 2023)
Mr R M Booth (Resigned 25 October 2022)
J I Tuffs (Appointed 17 March 2024)
J Brady (Appointed 17 March 2024)
Registered office
New Bridgewater House
Mayfield Avenue
Worsley
Manchester
M28 3JF
Auditor
Crossley & Davis Chartered Accountants
Chartered accountants & statutory auditor
Ground Floor, Seneca House
Links Point
Amy Johnson Way
Blackpool
Lancashire
FY4 2FF
Bankers
Santander
298 Deansgate
Manchester
M3 4HH
Red Seven Technology Group Limited
Strategic Report
Period from 1 October 2022 to 30 November 2023
Review of the business
The group is a highly respected Smart Telco, a strongly established UK market player with longstanding relationships in the VAR with a track record of nurturing partnerships big and small. The principal activity of the Company and its subsidiary undertakings continues to be the provision of communication services and technology within the UK and beyond. The business conducted is principally within the business-to-business sector, covering services including the provision of Inbound, Hosted and Unified Communication services. Support and Professional Services are now key products within the portfolio since the acquisition of Juniper Bridge and Atrium, adding to our diverse portfolio in the wholesale channel.
Results and performance
The results of the Group for the year, as set out on pages 16 and 17, show a profit on ordinary activities after tax attributable of £154,403 (2022:£299,186). The shareholders' funds of the Group total £1,604,663 (2022: £1,926,760). EBITDA in 2023 is £2,228,061 compared to £1,926,760 in 2022. The pandemic caused traditional support revenues to decline but the business has continued to successfully pivoted into new managed services propositions for fixed term monthly contract revenues. This has meant that the business has stabilised on revenues and growth is accelerating in these new areas. Avaya remains an important partner and expansion to include further professional services work for Avaya is also helping the growth of new revenue streams. The focus for Atrium over the coming year is to to focus on new Managed Service contracts, cross sell into the Invosys Wholesale partner base and to continue to monetise the Avaya relationship.
Business environment
The UK's communication industry is highly competitive, with a number of companies offering similar and resold products that has given rise to aggressive pricing structures. The impact and pace of innovation of technology within the sector has been enormous and with the support of other group companies and in-house development resources the company is ideally placed to not just keep abreast of advances but lead the way with innovative solutions and best in class platforms that has in the past, and will in the future, enable it to take advantage of the opportunities afforded when changes are an everyday reality.
Strategy
The Group's strategy in action is dedicated to broadening its sales, by providing access to services using our technology and platforms that, as well as number management and cloud call centres, will include hosted VoIP, smart SIP, hybrid cloud services, customized IT deployments, carrier termination, interconnection services, network and router monitoring and management, as well as industry compliant regulations for IT. Through the provision of these services, the group expects to grow its existing services, whilst entering new markets and offering new product lines, with the combination of both expected to see increased market share and profitability. The directors believe it is important to retain a diversified portfolio of services in order to achieve maximum profitability in this highly competitive marketplace. The directors recognise that the group's growth has been the result of its continued development and refinement of the core product of Number Manager. The development of Number Manager has continued in the UK but addition we've seen the expansion into Australia and New Zealand which recently has seen significant growth and we now have large opportunities in the pipeline overseas. Not only that but in addition to the continued development of Number Manager new products and services have been introduced in the UK creating new revenue streams with products such as Hosted Telephony and Connectivity. These products and developments keep the technology the group offers relevant to the market, and push our technology to the fore. The Group will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments, whilst aiming to improve efficiency in all areas of our operations.
Key performance indicators
The Board monitors the progress of the Group by reference to the following KPIs: 2023 2022 Financial Turnover 10,529,991 9,514,804 Gross Profit 6,644,361 5,816,591 Cash Reserves 719,743 742,202
Principal risks and uncertainties
The process of risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management, risk management and internal audit. Compliance with regulation, legal and ethical standards is a high priority for the Group and the compliance team and Group finance department take on an important oversight role in this regard.
Risks fall into two broad categories, Operational and Financial.
Operational Risks
Security
The group's network infrastructure provides clients with open access to the internet and global voice networks, consequently there is a risk from cyber threat, telephony fraud as well as the failure of the physical infrastructure. A breach of security could have a significant impact on the group's reputation and a chance of significant commercial loss.
The group has a proactive approach to identifying any threats and well proven procedures for neutralising such events. Our fraud management procedures identify unusual traffic patterns within a short timeframe and we have the operational capability both in and outside of offices to assess and mitigate any risks. Part of this approach involved the Company and its subsidiaries being GDPR compliant and ISO27001 certified.
Network and Systems Performance
Reliable, high quality, voice and data services are the core component of the group's products. Therefore, maintaining very high levels of service availability is central to any service provider's credibility. The group operates a comprehensive level of governance to manage the availability and performance of our services. This includes the design and architecture of our platforms, capacity planning, change management, security, business continuity planning and incident management and monitoring.
Customer Service Levels
Any service provider is assessed by its ability to process orders and deliver its service as quickly and efficiently as possible, whilst ensuring high quality support is available to facilitate this process and rectify events when something goes wrong. Delivering poor customer service can affect our ability to maintain and grow our client base. The group as part of its monthly management meeting reviews performance in this area, assessing and acting accordingly upon both internal and external feedback.
As part of Invosys's wider strategy on delivering a World Class Customer Experience it was imperative for the business to introduce a CRM system. This platform should be future proof, be recognised across the Technology Sector and should give us the opportunity to successfully integrate the businesses acquisitions.
Ultimately our choice was made to;
-Enhance Customer Retention and have greater interactions with our customers in a more professional manner
-Improve productivity by automating as many processes as we could and managing time tracking on orders
-Improve our Service Levels, as we can inspect the quality of our work and efficiency on turning around our orders within our Service Level pack
-Introduce accountability loops across interdepartmental teams
-Increase profitability - by tracking Margin on sales as well as Revenue
-Provide high end ticket management - improving the customer experience from sale to delivery
-Provide the business with quality Management Information from Sales, through to Service Requests and Marketing.
Increased Competition
Existing and new to market entities provide alternative platforms which compete directly with the group, with the threat that this may reduce the level of growth and impact the group's existing client base. The group therefore continues to develop its own platform, adding new features and usability to make it more attractive to both existing and potential clients.
Suppliers
The Group relies upon a number of key suppliers to provide the Network Platform on which its products are placed. Failure of one of these suppliers will adversely affect the group's ability to deliver its products and services. Where practical the group avoids reliance upon a single supplier and ensures that key supplier contracts have appropriate clauses in place to ensure their performance.
Key Personnel
The retention of key personnel is instrumental in the group's ability to maintain the levels of growth. The loss of key personnel can have a detrimental impact upon the business short term development. The group therefore has initiatives and schemes in place which help to ensure that its reputation as a good employer and to retain key staff.
Evolution of Technology and Markets
The communications industry is one of the fastest evolving markets, with developments of new technologies, their widespread take up together with heightened client and end user expectations. The group plans its developments of its products to anticipate and match these changes in order to meet future market demand.
Health and Safety
The group has a formal policy guided by legislation and best practice to ensure the health and safety of both employees and visitors which maintains a safe place of work.
Financial Risks
Credit Risk
Credit risk is the risk of financial loss if a client or a counterparty to a financial instrument fails to meet its contractual obligations. The company's main exposure is in relation to credit sales. It is the policy of the company to assess the credit risk of both new and where applicable existing clients for their creditworthiness, after which an assessment in relation to terms and levels of credit to be offered is made. The company continues to monitor existing clients through analyses of trade receivables on a monthly basis.
Fair Value and Cash Flow Interest Rate Risk
Historically the company's exposure to fair value and cash flow interest rate risk has been deemed negligible, due to sufficient cash reserves.
Market Risk
Historically the company's exposure to market risk has been deemed negligible.
Liquidity Risk
Liquidity risk relates to the company's inability to ensure that it has sufficient funds to manage its working capital, meeting its financial obligations as they fall due. The company has sufficient cash reserves and management will to ensure that it settles all balances as they become due.
Future developments
The directors recognise that much of the company's growth has been the result of its continued development and refinement of the core product of Number Manager. The development of Number Manager has continued in the UK with the development of the UCaaS offering 'Flow' in conjunction with Telavox. In addition the fraud protection software 'Call Shield' has been launched which further diversifies the product range and opens up new sectors. Additionally, we've seen the continued growth in Australia and New Zealand with further large opportunities in the pipeline overseas. These products and developments keep the technology the company offers relevant to the market and push our technology to the fore.
This report was approved by the board of directors on 27 November 2024 and signed on behalf of the board by:
J I Tuffs
Director
Registered office:
New Bridgewater House
Mayfield Avenue
Worsley
Manchester
M28 3JF
Red Seven Technology Group Limited
Directors' Report
Period from 1 October 2022 to 30 November 2023
The directors present their report and the financial statements of the group for the period ended 30 November 2023 .
Directors
The directors who served the company during the period were as follows:
Mr P Crooks
Mr R M Booth
(Resigned 25 October 2022)
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Future developments
The directors recognise that the group's growth has been the result of its continued development and refinement of the core product of Number Manager. The development of Number Manager has continued in the UK but addition we've seen the expansion into Australia and New Zealand which recently has seen significant growth and we now have large opportunities in the pipeline overseas. Not only that but in addition to the continued development of Number Manager new products and services have been introduced in the UK creating new revenue streams with products such as Hosted Telephony and Connectivity. These products and developments keep the technology the company offers relevant to the market, and push our technology to the fore.
Financial instruments
Financial Risks
Credit Risk
Credit risk is the risk of financial loss if a client or a counterparty to a financial instrument fails to meet its contractual obligations. The group's main exposure is in relation to credit sales. It is the policy of the group to assess the credit risk of both new and where applicable existing clients for their creditworthiness, after which an assessment in relation to terms and levels of credit to be offered is made. The group continues to monitor existing clients through analyses of trade receivables on a monthly basis.
Fair Value and Cash Flow Interest Rate Risk
The Group's exposure to fair value and cash flow interest rate risk has been deemed negligible, due to sufficient cash reserves.
Market Risk
Historically the group's exposure to market risk has been deemed negligible.
Liquidity Risk
Liquidity risk relates to the group's inability to ensure that it has sufficient funds to manage its working capital, meeting its financial obligations as they fall due. The group has sufficient cash reserves and management will to ensure that it settles all balances as they become due.
Events after the end of the reporting period
On 6 December 2023 the Group was purchased by Dura Software UK Limited.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial period. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 27 November 2024 and signed on behalf of the board by:
J I Tuffs
Director
Registered office:
New Bridgewater House
Mayfield Avenue
Worsley
Manchester
M28 3JF
Red Seven Technology Group Limited
Independent Auditor's Report to the Members of Red Seven Technology Group Limited
Period from 1 October 2022 to 30 November 2023
Opinion
We have audited the financial statements of Red Seven Technology Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 November 2023 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 30 November 2023 and of the group's profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor’s report 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Review of nominal postings for legal and professional fees ensured we identified any regulatory compliance issues and laws that company must follow in the year and to the date of signing the financial statements - The assessment of fraud was considered as low due to the segregation of duties seen, the low levels of cash handled. - A review of journal entries and consideration of their appropriateness was carried out throughout the audit - During the audit we speak to management, test the systems and speak to various members of the finance function to understand the entity its processes and the nature of trade to assist in determining if the financial statements are true and fair - Due to a number of personnel changes in the year we increased our sample sizes in our system testing - Challenging assumptions made by management in making their significant accounting estimates. - Reviewing financial statement disclosure and testing to supporting documentation to assess compliance with applicable laws and regulations - Review and reconciliation of intra-group balances and assessment of recoverability - Assessing and challenging the group's policies in respect of intellectual property and capitalisation of intangibles As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 an auditor's report 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.
Peter Swarbrick BSc FCA
(Senior Statutory Auditor)
For and on behalf of
Crossley & Davis Chartered Accountants
Chartered accountants & statutory auditor
Ground Floor, Seneca House
Links Point
Amy Johnson Way
Blackpool
Lancashire
FY4 2FF
27 November 2024
Red Seven Technology Group Limited
Consolidated Statement of Comprehensive Income
Period from 1 October 2022 to 30 November 2023
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
Note
£
£
Turnover
4
10,529,991
9,514,804
Cost of sales
3,885,631
3,698,213
-------------
------------
Gross profit
6,644,360
5,816,591
Administrative expenses
5,677,756
4,917,773
Other operating income
5
41,706
------------
------------
Operating profit
6
1,008,310
898,818
Other interest receivable and similar income
10
472
11,972
Interest payable and similar expenses
11
640,085
407,216
------------
------------
Profit before taxation
368,697
503,574
Tax on profit
12
214,294
204,388
---------
---------
Profit for the financial period and total comprehensive income
154,403
299,186
---------
---------
All the activities of the group are from continuing operations.
Red Seven Technology Group Limited
Consolidated Statement of Financial Position
30 November 2023
30 Nov 23
30 Sep 22
(restated)
Note
£
£
Fixed assets
Intangible assets
14
4,050,899
5,186,528
Tangible assets
15
300,213
330,044
------------
------------
4,351,112
5,516,572
Current assets
Debtors
17
4,242,649
4,668,078
Cash at bank and in hand
719,743
742,202
------------
------------
4,962,392
5,410,280
Creditors: amounts falling due within one year
Bank loans and overdrafts
5,215,178
550,000
Trade creditors
949,186
1,670,607
Other creditors including taxation and social security
18
902,446
1,051,942
Accruals and deferred income
567,341
348,525
------------
------------
7,634,151
3,621,074
------------
------------
Net current (liabilities)/assets
( 2,671,759)
1,789,206
------------
------------
Total assets less current liabilities
1,679,353
7,305,778
Creditors: amounts falling due after more than one year
Bank loans and overdrafts
5,218,168
Other creditors including taxation and social security
19
79,043
----
------------
5,297,211
Provisions
21
74,690
81,807
------------
------------
Net assets
1,604,663
1,926,760
------------
------------
Capital and reserves
Called up share capital
24
11,197
11,220
Capital redemption reserve
25
23
Other reserves, including the fair value reserve
25
2,515,730
2,515,730
Profit and loss account
25
( 922,287)
( 600,190)
------------
------------
Shareholders funds
1,604,663
1,926,760
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
Red Seven Technology Group Limited
Consolidated Statement of Financial Position (continued)
30 November 2023
These financial statements were approved by the board of directors and authorised for issue on 27 November 2024 , and are signed on behalf of the board by:
J I Tuffs
Director
Company registration number: 10973790
Red Seven Technology Group Limited
Company Statement of Financial Position
30 November 2023
30 Nov 23
30 Sep 22
(restated)
Note
£
£
Fixed assets
Intangible assets
14
150
4,618,504
Tangible assets
15
1
142
Investments
16
5,623,119
2,716,241
------------
------------
5,623,270
7,334,887
Current assets
Debtors
17
3,774,412
1,480,803
Cash at bank and in hand
14,347
47,520
------------
------------
3,788,759
1,528,323
Creditors: amounts falling due within one year
Bank loans and overdrafts
2,783,198
540,000
Trade creditors
( 8,797)
( 8,795)
Amounts owed to group undertakings
5,785,259
8,788,943
Other creditors including taxation and social security
18
332,092
427,195
Accruals and deferred income
87,031
22,046
------------
------------
8,978,783
9,769,389
------------
------------
Net current liabilities
5,190,024
8,241,066
------------
------------
Total assets less current liabilities
433,246
( 906,179)
Creditors: amounts falling due after more than one year
Bank loans and overdrafts
2,714,521
---------
------------
Net assets/(liabilities)
433,246
( 3,620,700)
---------
------------
Capital and reserves
Called up share capital
24
11,197
11,220
Capital redemption reserve
25
23
Profit and loss account
25
422,026
( 3,631,920)
---------
------------
Shareholders funds/(deficit)
433,246
( 3,620,700)
---------
------------
The profit for the financial period of the parent company was £ 5,748,491 (2022: £ 335,471 loss).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
Red Seven Technology Group Limited
Company Statement of Financial Position (continued)
30 November 2023
These financial statements were approved by the board of directors and authorised for issue on 27 November 2024 , and are signed on behalf of the board by:
J I Tuffs
Director
Company registration number: 10973790
Red Seven Technology Group Limited
Consolidated Statement of Changes in Equity
Period from 1 October 2022 to 30 November 2023
Called up share capital
Capital redemption reserve
Other reserves, including the fair value reserve
Profit and loss account
Total
£
£
£
£
£
At 1 October 2021 (as previously reported)
11,220
2,515,730
( 395,753)
2,131,197
Prior period adjustments
(67,134)
(67,134)
--------
----
------------
---------
------------
At 1 October 2021 (restated)
11,220
2,515,730
( 462,887)
2,064,063
--------
----
------------
---------
------------
Profit for the period
299,186
299,186
--------
----
------------
---------
------------
Total comprehensive income for the period
299,186
299,186
Dividends paid and payable
13
( 436,489)
( 436,489)
--------
----
------------
---------
------------
Total investments by and distributions to owners
( 436,489)
( 436,489)
At 30 September 2022
11,220
2,515,730
( 600,190)
1,926,760
Profit for the period
154,403
154,403
--------
----
------------
---------
------------
Total comprehensive income for the period
154,403
154,403
Dividends paid and payable
13
( 466,600)
( 466,600)
Cancellation of subscribed capital
( 23)
23
( 9,900)
( 9,900)
----
----
----
---------
---------
Total investments by and distributions to owners
( 23)
23
( 476,500)
( 476,500)
--------
----
------------
---------
------------
At 30 November 2023
11,197
23
2,515,730
( 922,287)
1,604,663
--------
----
------------
---------
------------
Red Seven Technology Group Limited
Company Statement of Changes in Equity
Period from 1 October 2022 to 30 November 2023
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 October 2021
11,220
( 2,859,959)
( 2,848,739)
Loss for the period
( 335,471)
( 335,471)
--------
----
------------
------------
Total comprehensive income for the period
( 335,471)
( 335,471)
Dividends paid and payable
13
( 436,490)
( 436,490)
--------
----
------------
------------
Total investments by and distributions to owners
( 436,490)
( 436,490)
At 30 September 2022 (as previously reported)
11,220
( 3,631,920)
( 3,620,700)
Prior period adjustments
(1,218,045)
(1,218,045)
--------
----
------------
------------
At 30 September 2022 (restated)
11,220
(4,849,965)
(4,838,745)
--------
----
------------
------------
Profit for the period
5,748,491
5,748,491
--------
----
------------
------------
Total comprehensive income for the period
5,748,491
5,748,491
Dividends paid and payable
13
( 466,600)
( 466,600)
Cancellation of subscribed capital
( 23)
23
( 9,900)
( 9,900)
----
----
---------
---------
Total investments by and distributions to owners
( 23)
23
( 476,500)
( 476,500)
--------
----
---------
---------
At 30 November 2023
11,197
23
422,026
433,246
--------
----
---------
---------
Red Seven Technology Group Limited
Consolidated Statement of Cash Flows
Period from 1 October 2022 to 30 November 2023
30 Nov 23
30 Sep 22
(restated)
£
£
Cash flows from operating activities
Profit for the financial period
154,403
299,186
Adjustments for:
Depreciation of tangible assets
34,122
49,890
Amortisation of intangible assets
1,185,629
992,892
Other interest receivable and similar income
(472)
(11,972)
Interest payable and similar expenses
640,085
407,216
Loss on disposal of tangible assets
6,066
Tax on profit/(loss)
214,294
204,388
Accrued expenses
355,946
138,787
Changes in:
Stocks
26,875
Trade and other debtors
257,196
1,029,449
Trade and other creditors
( 1,008,822)
( 929,413)
------------
------------
Cash generated from operations
1,832,381
2,213,364
Interest paid
( 640,085)
( 407,216)
Interest received
472
11,972
Tax paid
( 120,650)
( 496,959)
------------
------------
Net cash from operating activities
1,072,118
1,321,161
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 4,291)
( 1,417)
Purchase of intangible assets
( 50,001)
83,082
------------
------------
Net cash (used in)/from investing activities
( 54,292)
81,665
------------
------------
Cash flows from financing activities
Purchase of own shares
( 9,922)
Repayments of borrowings
( 552,990)
( 503,555)
Payments of finance lease liabilities
( 10,796)
( 42,254)
Dividends paid
( 466,600)
( 436,489)
------------
------------
Net cash used in financing activities
( 1,040,308)
( 982,298)
------------
------------
Net (decrease)/increase in cash and cash equivalents
( 22,482)
420,528
Cash and cash equivalents at beginning of period
742,202
321,674
---------
---------
Cash and cash equivalents at end of period
719,720
742,202
---------
---------
Red Seven Technology Group Limited
Notes to the Financial Statements
Period from 1 October 2022 to 30 November 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is New Bridgewater House, Mayfield Avenue, Worsley, Manchester, M28 3JF.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and, where relevant, investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. The financial statements have been rounded to the nearest £1
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 30 September 2023. The results of any other subsidiaries sold or acquired where relevant are included in the consolidated profit and loss account up to, or from the date control passes. As a consolidated group, profit and loss is published, a separate profit and loss account for the parent company is omitted from the Group financial statements by virtue of Section 408 of the Companies Act 2006.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements: Useful economic life of tangible fixed assets: the annual depreciation charge is sensitive to changes in estimated economic lives and residual value of tangible fixed assets. Management re-assess these annually and amend them where necessary to reflect current estimates .
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering or services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent expenses recognised are recoverable. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
10% straight line
Development costs
-
20% straight line
Other intangibles
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and development
Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Long leasehold property
-
over the term of the lease
Plant and machinery
-
25% reducing balance
Fixtures, fittings and equipment
-
10% straight line
Motor vehicles
-
25% reducing balance
Computer equipment
-
20 % straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Rendering of services
10,529,991
9,514,804
-------------
------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Other operating income
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Other operating income
41,706
--------
----
6. Operating profit/(loss)
Operating profit or loss is stated after charging/crediting:
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Amortisation of intangible assets
1,185,629
992,892
Depreciation of tangible assets
34,122
49,890
Loss on disposal of tangible assets
6,066
Impairment of trade debtors
29,152
26,761
Foreign exchange differences
10,565
( 2,410)
------------
---------
7. Auditor's remuneration
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Fees payable for the audit of the financial statements
38,450
38,450
--------
--------
8. Staff costs
The average number of persons employed by the group during the period, including the directors, amounted to:
30 Nov 23
30 Sep 22
No.
No.
Production staff
1
Administrative staff
59
68
Management staff
1
2
----
----
61
70
----
----
The aggregate payroll costs incurred during the period, relating to the above, were:
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Wages and salaries
2,623,094
2,392,904
Social security costs
288,765
265,236
Other pension costs
131,845
119,286
------------
------------
3,043,704
2,777,426
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Remuneration
20,627
29,670
Company contributions to defined contribution pension plans
18,667
15,999
--------
--------
39,294
45,669
--------
--------
The number of directors who accrued benefits under company pension plans was as follows:
30 Nov 23
30 Sep 22
(restated)
No.
No.
Defined contribution plans
1
1
----
----
10. Other interest receivable and similar income
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Interest on cash and cash equivalents
409
Other interest receivable and similar income
63
11,972
----
--------
472
11,972
----
--------
11. Interest payable and similar expenses
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Interest on banks loans and overdrafts
410,359
263,541
Interest payable
1,073
Other interest payable and similar charges
( 229,726)
( 142,602)
---------
---------
640,085
407,216
---------
---------
12. Tax on profit/(loss)
Major components of tax expense
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Current tax:
UK current tax expense
414,328
214,814
Adjustments in respect of prior periods
( 192,917)
( 20,613)
---------
---------
Total current tax
221,411
194,201
---------
---------
Deferred tax:
Origination and reversal of timing differences
( 7,117)
10,187
---------
---------
Tax on profit/(loss)
214,294
204,388
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the period is lower than (2022: higher than) the standard rate of corporation tax in the UK of 22.44 % (2022: 19 %).
Period from
1 Oct 22 to
Year to
30 Nov 23
30 Sep 22
(restated)
£
£
Profit on ordinary activities before taxation
368,697
503,574
---------
---------
Profit on ordinary activities by rate of tax
233,559
95,679
Adjustment to tax charge in respect of prior periods
( 192,917)
(44,224)
Effect of expenses not deductible for tax purposes
173,794
126,227
Effect of capital allowances and depreciation
( 1,265)
176,130
Effect of revenue exempt from tax
( 73,109)
Utilisation of tax losses
( 53,404)
Unused tax losses
1,123
( 36,785)
Tax over/under provision
3,687
Deferred Tax movement
10,187
---------
---------
Tax on profit/(loss)
214,294
204,388
---------
---------
13. Dividends
30 Nov 23
30 Sep 22
(restated)
£
£
Dividends paid during the period (excluding those for which a liability existed at the end of the prior period )
466,600
436,489
Dividends proposed after the period end and not recognised as a liability
300,000
---------
---------
14. Intangible assets
Group
Goodwill
Development costs
Intellectual property
Total
£
£
£
£
Cost
At 1 October 2022 (as restated)
9,975,573
198,301
689,957
10,863,831
Additions from internal developments
50,000
50,000
------------
---------
---------
-------------
At 30 November 2023
9,975,573
198,301
739,957
10,913,831
------------
---------
---------
-------------
Amortisation
At 1 October 2022
4,867,989
198,101
611,213
5,677,303
Charge for the period
1,164,634
20,995
1,185,629
------------
---------
---------
-------------
At 30 November 2023
6,032,623
198,101
632,208
6,862,932
------------
---------
---------
-------------
Carrying amount
At 30 November 2023
3,942,950
200
107,749
4,050,899
------------
---------
---------
-------------
At 30 September 2022
5,107,584
200
78,744
5,186,528
------------
---------
---------
-------------
Company
Intellectual property
£
Cost
At 1 October 2022 (as restated) and 30 November 2023
3,000
-------
Amortisation
At 1 October 2022
2,150
Charge for the period
700
-------
At 30 November 2023
2,850
-------
Carrying amount
At 30 November 2023
150
-------
At 30 September 2022
850
-------
15. Tangible assets
Group
Freehold property
Long leasehold property
Fixtures, fittings and equipment
Motor vehicles
Computer equipment
Total
£
£
£
£
£
£
Cost
At 1 Oct 2022 (as restated)
249,193
29,828
108,285
127,990
799,029
1,314,325
Additions
4,291
4,291
---------
--------
---------
---------
---------
------------
At 30 Nov 2023
249,193
29,828
108,285
127,990
803,320
1,318,616
---------
--------
---------
---------
---------
------------
Depreciation
At 1 Oct 2022
23,688
29,828
97,380
46,076
787,309
984,281
Charge for the period
3,934
5,426
19,114
5,648
34,122
---------
--------
---------
---------
---------
------------
At 30 Nov 2023
27,622
29,828
102,806
65,190
792,957
1,018,403
---------
--------
---------
---------
---------
------------
Carrying amount
At 30 Nov 2023
221,571
5,479
62,800
10,363
300,213
---------
--------
---------
---------
---------
------------
At 30 Sep 2022
225,505
10,905
81,914
11,720
330,044
---------
--------
---------
---------
---------
------------
Company
Fixtures and fittings
£
Cost
At 1 October 2022 (as restated) and 30 November 2023
1,682
-------
Depreciation
At 1 October 2022
1,540
Charge for the period
141
-------
At 30 November 2023
1,681
-------
Carrying amount
At 30 November 2023
1
-------
At 30 September 2022
142
-------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Group
Motor vehicles
£
At 30 November 2023
62,800
--------
At 30 September 2022
81,914
--------
The company has no tangible assets held under finance lease or hire purchase agreements.
16. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 October 2022 as restated and 30 November 2023
12,354,240
-------------
Impairment
At 1 October 2022 as restated
6,238,390
Impairment losses
492,731
-------------
At 30 November 2023
6,731,121
-------------
Carrying amount
At 30 November 2023
5,623,119
-------------
At 30 September 2022
6,115,850
-------------
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
Invosys Business Limited (Formerly Connected World Communications Limited), New Bridgewater House, Mayfield Avenue, Worsley,
Ordinary
100
Connected World Communications Limited (Formerly Telux Limited), New Bridgewater House, Mayfield Avenue, Worsley, Manchester,
Ordinary
100
Juniper Bridge Limited, New Bridgewater House, Mayfield Avenue, Worsley, Manchester, M28 3JF
Ordinary
100
Invosys Limited, New Bridgewater House, Mayfield Avenue, Worsley, Manchester, M28 3JF
Ordinary
100
Atrium Telecom Limited, New Bridgewater House, Mayfield Avenue, Worsley, Manchester, M28 3JF
Ordinary
100
17. Debtors
Group
Company
30 Nov 23
30 Sep 22
30 Nov 23
30 Sep 22
(restated)
(restated)
£
£
£
£
Trade debtors
1,159,719
1,348,397
168,000
Amounts owed by group undertakings
3,204,820
705,030
Prepayments and accrued income
646,544
897,823
6,582
15,315
Directors loan account
1,653,806
1,653,806
424,913
424,913
Other debtors
782,580
768,052
138,097
167,545
------------
------------
------------
------------
4,242,649
4,668,078
3,774,412
1,480,803
------------
------------
------------
------------
18. Other creditors including taxation and social security falling
due within one year
Group
Company
30 Nov 23
30 Sep 22
30 Nov 23
30 Sep 22
(restated)
(restated)
£
£
£
£
Corporation tax
86,306
162,240
Social security and other taxes
417,353
591,383
51,645
146,748
Obligations under finance leases
83,499
15,252
Other creditors
315,288
283,067
280,447
280,447
---------
------------
---------
---------
902,446
1,051,942
332,092
427,195
---------
------------
---------
---------
19. Other creditors including taxation and social security falling
due after more than one year
Group
Company
30 Nov 23
30 Sep 22
30 Nov 23
30 Sep 22
(restated)
(restated)
£
£
£
£
Obligations under finance leases
79,043
----
--------
----
----
20. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
Group
Company
30 Nov 23
30 Sep 22
30 Nov 23
30 Sep 22
(restated)
(restated)
£
£
£
£
Not later than 1 year
83,499
15,252
Later than 1 year and not later than 5 years
79,043
--------
--------
----
----
83,499
94,295
--------
--------
----
----
21. Provisions
Group
Deferred tax (note 22)
Other Provisions
Total
£
£
£
At 1 October 2022 (as restated)
79,975
1,832
81,807
Additions
( 53)
( 53)
Charge against provision
( 7,064)
( 7,064)
--------
-------
--------
At 30 November 2023
72,858
1,832
74,690
--------
-------
--------
The company does not have any provisions.
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
30 Nov 23
30 Sep 22
30 Nov 23
30 Sep 22
(restated)
(restated)
£
£
£
£
Included in provisions (note 21)
72,858
79,975
--------
--------
----
----
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
30 Nov 23
30 Sep 22
30 Nov 23
30 Sep 22
(restated)
(restated)
£
£
£
£
Accelerated capital allowances
72,858
79,975
--------
--------
----
----
23. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 131,845 (2022: £ 118,385 ).
24. Called up share capital
Authorised share capital
30 Nov 23
30 Sep 22
(restated)
No.
£
No.
£
Ordinary A Shares shares of £ 0.001 each
6,427,000
6,427
6,427,000
6,427
Ordinary B Shares shares of £ 0.001 each
3,060,000
3,060
3,060,000
3,060
Ordinary C Shares shares of £ 0.001 each
510,000
510
510,000
510
Ordinary D Shares shares of £ 0.001 each
80,000
80
103,000
103
Ordinary E Shares shares of £ 0.001 each
100,000
100
100,000
100
Ordinary F Shares shares of £0.001 each
1,020,000
1,020
1,020,000
1,020
-------------
--------
-------------
--------
11,197,000
11,197
11,220,000
11,220
-------------
--------
-------------
--------
Issued, called up and fully paid
30 Nov 23
30 Sep 22
(restated)
No.
£
No.
£
Ordinary A Shares shares of £ 0.001 each
6,427,000
6,427
6,427,000
6,427
Ordinary B Shares shares of £ 0.001 each
3,060,000
3,060
3,060,000
3,060
Ordinary C Shares shares of £ 0.001 each
510,000
510
510,000
510
Ordinary D Shares shares of £ 0.001 each
80,000
80
103,000
103
Ordinary E Shares shares of £ 0.001 each
100,000
100
100,000
100
Ordinary F Shares shares of £0.001 each
1,020,000
1,020
1,020,000
1,020
-------------
--------
-------------
--------
11,197,000
11,197
11,220,000
11,220
-------------
--------
-------------
--------
During the year the company purchased 23,317 D shares of £0.001 each for £22,400, these were subsequently cancelled.
25. Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses. Merger reserve - This is a non-statutory reserve as a result of using the merger accounting method due to a group reconstruction. It is non-distributable.
26. Change in reporting period
The financial statements presented are for a period of 14 months, which is longer than the typical 12 month period. This change was due to aligning the period end with the acquisition of the group which completed early December 2023.
Comparative amounts presented in these financial statements, including related notes, are not entirely comparable to the current period due to the change in the reporting period.
The prior year figures are based on a different reporting period.
27. Analysis of changes in net debt
At 1 Oct 2022
Cash flows
At 30 Nov 2023
£
£
£
Cash at bank and in hand
742,202
(22,459)
719,743
Debt due within one year
(565,252)
(4,733,425)
(5,298,677)
Debt due after one year
(5,297,211)
5,297,211
------------
------------
------------
( 5,120,261)
541,327
( 4,578,934)
------------
------------
------------
28. Charges on assets
There is a composite guarantee and debenture between Red Seven Technology Group Limited and its subsidiaries and a connected individual dated 30 August 2017.
There is a charge over any patents, trade marks and designs in the company dating August 2017
Within Red Seven Technology Group Limited and its subsidiaries there is a debenture charge (fixed and floating with negative pledge) dated 13 August 2019 formally by Santander UK PLC charged on all the property or undertaking of the companies.
There is also a formal legal charge on New Bridgewater House dated 13th August 2019.
On January 2021 Santander placed a first fixed charge over the whole assets of Invosys Limited.
29. Directors' advances, credits and guarantees
During the period the directors entered into the following advances and credits with the company and its subsidiary undertakings:
Balance brought forward and outstanding
30 Nov 23
30 Sep 22
£
£
Mr P Crooks
368,316
368,316
Mr R M Booth
1,285,490
1,285,490
------------
------------
1,653,806
1,653,806
------------
------------
Red Seven Technology Group Limited
Notes to the Financial Statements (continued)
Period from 1 October 2022 to 30 November 2023
30. Related party transactions
Company
Intra Group During the year there have been transactions between all 100% owned Subsidiaries, these are all controlled by the directors of Red Seven Technology Group Limited At the year end there are loan balances between the group companies amounting to £12,301,040 (2022 - £13,298,798) At the year end there are trading ledger balances between the group companies amounting to £138,502 (2022 - £399,586) During the year there have been sales and purchases between group companies amounting to £2,109,356 (2022 - £2,344,259). During the year dividends have been paid up from subsidiary companies totaling £6,286,980 (2022 - £400,000). Other Related Parties Dividends have been paid during the year to directors of the company totaling £466,600(2022 - £400,000).
31. Controlling party
The Group was ultimately controlled by R Booth via his shareholding of Red Seven Holdings Limited. In December 2023 the Group was purchased by Dura Software UK Limited.