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REGISTERED NUMBER: 05824001 (England and Wales)














Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 May 2024

for

RAZORBLUE LTD

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)






Contents of the Financial Statements
for the Year Ended 31 May 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


RAZORBLUE LTD

Company Information
for the Year Ended 31 May 2024







Directors: D J Kitchen
R V Kitchen
M Wilkinson
S P Coultas





Secretary: V Bauer





Registered office: Admiralty House
Fudan Way
Thornaby
Stockton-on-Tees
TS17 6EN





Registered number: 05824001 (England and Wales)





Auditors: Armstrong Watson Audit Limited
1 Strawberry Lane
Newcastle Upon Tyne
NE1 4BX

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Strategic Report
for the Year Ended 31 May 2024

The directors present their strategic report for the year ended 31 May 2024.

Review of business
Despite a challenging economic environment, the company - a subsidiary of Razorblue Group Ltd has recorded underlying revenue growth of £4 million to £16 million in the year ended 31 May 2024.

Annualised Recurring Revenue (ARR) remained robust at 71% achieved through continued new client wins, strong client retention aided by the business's client centric approach.

Gross profit margin has increased to £4 million in the year ended 31 May 2024, from £3 million in the year ended 31 May 2023.

Razorblue Ltd is pleased to report that adjusted EBITDA grew to £1 million in the year ended 31 May 2024, from £0.7 million in the year ended 31 May 2023. This follows a period of continued inflationary cost headwinds and investment in numerous strategic initiatives including proprietary platforms, strategic infrastructure, cyber security, and security operations centre (SOC).

A summary of Razorblue Ltd's financial performance and position for the current and previous financial year is as follows:

Financial performance 2024 2023
Turnover (£'000) 16,363 12,749
Gross Profit (£'000) 4,222 3,271
EBITDA (£'000) 1,077 698

Financial position
Cash at bank (£'000) 1,065 844
Net assets (£'000) 1,138 977

Principal risks and uncertainties
Razorblue Ltd has an established and structured approach to risk management, overseen by the board. The following risks could have a material impact on the company's performance:

UK Economic Climate - demand for services will fluctuate depending on market stability. Razorblue Ltd's exposure to risk is mitigated by the critical nature of the services it provides, and the recurring nature of its contracts.

Skill Shortage - Razorblue Ltd's financial performance has already been affected by the increasing cost of skills due to the global shortage, whilst the business has put in place measures to train its own skilled professionals, the risk is likely to continue to exist for several years to come.

Credit Risk - Razorblue Ltd manages its credit risk carefully using credit reference agencies and diversification of clients and industry sectors; however, this is likely to remain a risk during a period of economic uncertainty.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board:





D J Kitchen - Director


17 January 2025

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Report of the Directors
for the Year Ended 31 May 2024

The directors present their report with the financial statements of the company for the year ended 31 May 2024.

Principal activity
The principal activity of the company in the year under review was that of provision of IT Managed Services, Cloud, Connectivity, Business Applications and Cyber Security solutions.

Dividends
The total distribution of dividends for the year ended 31 May 2024 will be £ 604,536 .

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

D J Kitchen
R V Kitchen
M Wilkinson
S P Coultas

Other changes in directors holding office are as follows:

J D Anderson - resigned 26 January 2024
A Timothy - resigned 1 April 2024
D Raper - resigned 31 July 2023
N Warren - appointed 31 July 2023 - resigned 25 December 2023

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

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

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

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

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Report of the Directors
for the Year Ended 31 May 2024


Auditors
The auditors, Armstrong Watson Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





D J Kitchen - Director


17 January 2025

Report of the Independent Auditors to the Members of
Razorblue Ltd

Opinion
We have audited the financial statements of Razorblue Ltd (the 'company') for the year ended 31 May 2024 which comprise Statement of Comprehensive Income and Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for 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 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 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 contained within the annual report. 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. 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 course of 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 directors' report for the financial year 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.

Report of the Independent Auditors to the Members of
Razorblue Ltd


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 and the directors' report.

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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Razorblue Ltd


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 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other
management and review of appropriate industry knowledge;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to
instance of non-compliance throughout the audit.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
- making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we;
- performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions
- tested the designed and implementation of key controls over deferred income on a sample basis;
- reviewed the application of accounting policies with focus on those with heightened estimation uncertainty;
- review goodwill and valuation of investments

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures to which included, but were not limited to
- agreeing financial statement disclosures to underlying supporting documentation, and;
- enquiring of management as to actual and potential litigation claims.

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.

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
Razorblue 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.




Simon Turner (Senior Statutory Auditor)
for and on behalf of Armstrong Watson Audit Limited
1 Strawberry Lane
Newcastle Upon Tyne
NE1 4BX

17 January 2025

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Statement of Comprehensive
Income
for the Year Ended 31 May 2024

31/5/24 31/5/23
Notes £    £   

Turnover 16,363,157 12,748,945

Cost of sales 12,141,260 9,478,423
Gross profit 4,221,897 3,270,522

Administrative expenses 3,368,710 2,731,852
853,187 538,670

Other operating income 14,902 4,500
Gain/loss on revaluation of intangible assets (22,093 ) (33,943 )
Operating profit 4 845,996 509,227


Interest payable and similar expenses 5 116 203
Profit before taxation 845,880 509,024

Tax on profit 6 79,669 51,824
Profit for the financial year 766,211 457,200

Other comprehensive income
Revaluation of intangible assets 16,570 25,457
Transfer to revaluation reserve (16,570 ) (25,457 )
Income tax relating to components of other
comprehensive income

-

-
Other comprehensive income for the year,
net of income tax

-

-
Total comprehensive income for the year 766,211 457,200

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Balance Sheet
31 May 2024

31/5/24 31/5/23
Notes £    £    £    £   
Fixed assets
Intangible assets 8 131,971 151,436
Tangible assets 9 1,270,031 929,725
1,402,002 1,081,161

Current assets
Stocks 10 32,705 49,782
Debtors 11 3,050,354 2,135,107
Cash at bank and in hand 1,064,909 843,640
4,147,968 3,028,529
Creditors
Amounts falling due within one year 12 4,061,193 2,862,799
Net current assets 86,775 165,730
Total assets less current liabilities 1,488,777 1,246,891

Provisions for liabilities 14 350,501 270,290
Net assets 1,138,276 976,601

Capital and reserves
Called up share capital 15 1,000 1,000
Revaluation reserve 16 68,271 84,841
Retained earnings 16 1,069,005 890,760
Shareholders' funds 1,138,276 976,601

The financial statements were approved by the Board of Directors and authorised for issue on 17 January 2025 and were signed on its behalf by:





D J Kitchen - Director


RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Statement of Changes in Equity
for the Year Ended 31 May 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 June 2022 1,000 862,639 110,298 973,937

Changes in equity
Dividends - (454,536 ) - (454,536 )
Total comprehensive income - 482,657 (25,457 ) 457,200
Balance at 31 May 2023 1,000 890,760 84,841 976,601

Changes in equity
Dividends - (604,536 ) - (604,536 )
Total comprehensive income - 782,781 (16,570 ) 766,211
Balance at 31 May 2024 1,000 1,069,005 68,271 1,138,276

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Cash Flow Statement
for the Year Ended 31 May 2024

31/5/24 31/5/23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,377,843 1,283,150
Interest paid (116 ) (203 )
Net cash from operating activities 1,377,727 1,282,947

Cash flows from investing activities
Purchase of intangible fixed assets (8,012 ) (14,160 )
Purchase of tangible fixed assets (566,560 ) (393,500 )
Net cash from investing activities (574,572 ) (407,660 )

Cash flows from financing activities
Capital repayments in year - (13,882 )
Movement in group balances 22,650 (468,563 )
Equity dividends paid (604,536 ) (454,536 )
Net cash from financing activities (581,886 ) (936,981 )

Increase/(decrease) in cash and cash equivalents 221,269 (61,694 )
Cash and cash equivalents at beginning of
year

2

843,640

905,334

Cash and cash equivalents at end of year 2 1,064,909 843,640

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Cash Flow Statement
for the Year Ended 31 May 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

31/5/24 31/5/23
£    £   
Profit before taxation 845,880 509,024
Depreciation charges 227,357 176,990
Loss on disposal of fixed assets - 12,189
Loss on revaluation of fixed assets 22,093 33,943
Finance costs 116 203
1,095,446 732,349
Decrease/(increase) in stocks 17,077 (35,562 )
Increase in trade and other debtors (153,248 ) (419,851 )
Increase in trade and other creditors 418,568 1,006,214
Cash generated from operations 1,377,843 1,283,150

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31/5/24 1/6/23
£    £   
Cash and cash equivalents 1,064,909 843,640
Year ended 31 May 2023
31/5/23 1/6/22
£    £   
Cash and cash equivalents 843,640 905,334


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/6/23 Cash flow At 31/5/24
£    £    £   
Net cash
Cash at bank and in hand 843,640 221,269 1,064,909
843,640 221,269 1,064,909
Total 843,640 221,269 1,064,909

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Financial Statements
for the Year Ended 31 May 2024

1. STATUTORY INFORMATION

Razorblue 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 preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared under the going concern basis of accounting.

Critical accounting 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 form 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.

Turnover
Turnover represents the value of work carried out during the year including amounts not yet invoiced, excluding value added tax. Income is being recognised according to the stage of completion of work done.

The policies adopted for the recognition of turnover are as follows:

Sale of goods
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Rendering of services
When the outcome of a transaction can be estimated reliably, turnover from rending of services is recognised by reference to the period for which the services relate at the balance sheet date.

Intangible assets
Amortisation is provided at the following annual rate in order to write off the asset over its estimated useful life.

Patents and licences - 25% on reducing balance

IP addresses are held on a valuation basis and impairment reviews are undertaken annually.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Office equipment - 25% on reducing balance
Computer equipment - 25% on reducing balance and 10% on reducing balance

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is determined using the first in first out method.

Financial instruments
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measure at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year of less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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

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

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

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

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development in repect of development and improvement of company assets is capitalised in line with the company's fixed asset policy.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Grants receivable
Revenue grants receivable are released to the profit and loss account in the same period as the costs to which they relate.

3. EMPLOYEES AND DIRECTORS
31/5/24 31/5/23
£    £   
Wages and salaries 3,492,108 2,458,876
Social security costs 314,228 244,491
Other pension costs 34,655 54,922
3,840,991 2,758,289

The average number of employees during the year was as follows:
31/5/24 31/5/23

Employees 94 96

31/5/24 31/5/23
£    £   
Directors' remuneration 16,787 61,060
Directors' pension contributions to money purchase schemes 330 1,320

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

3. EMPLOYEES AND DIRECTORS - continued

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

Money purchase schemes 1 1

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31/5/24 31/5/23
£    £   
Depreciation - owned assets 226,254 170,789
Loss on disposal of fixed assets - 12,189
Patents and licences amortisation 5,384 6,201
Foreign exchange differences (416 ) -

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31/5/24 31/5/23
£    £   
Loan 25 203
Interest payable 91 -
116 203

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/5/24 31/5/23
£    £   
Deferred tax 79,669 51,824
Tax on profit 79,669 51,824

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31/5/24 31/5/23
£    £   
Profit before tax 845,880 509,024
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

211,470

96,715

Effects of:
Expenses not deductible for tax purposes 5,837 7,410
Capital allowances in excess of depreciation (86,383 ) (54,665 )
Utilisation of tax losses - (20,341 )
Group relief (130,924 ) (29,119 )
Accelerated capital allowances 85,734 60,310
Deferred taxation on revaluation of intangibles (5,523 ) (8,486 )
Intercompany adjustments in respect of subsidiaries (542 ) -
Total tax charge 79,669 51,824

Tax effects relating to effects of other comprehensive income

31/5/24
Gross Tax Net
£    £    £   
Revaluation of intangible assets 16,570 - 16,570
Transfer to revaluation reserve (16,570 ) - (16,570 )
- - -

31/5/23
Gross Tax Net
£    £    £   
Revaluation of intangible assets 25,457 - 25,457
Transfer to revaluation reserve (25,457 ) - (25,457 )
- - -

7. DIVIDENDS
31/5/24 31/5/23
£    £   
Paid during the year 604,536 454,536

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

8. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST OR VALUATION
At 1 June 2023 164,332
Additions 8,012
Revaluations (22,093 )
At 31 May 2024 150,251
AMORTISATION
At 1 June 2023 12,896
Amortisation for year 5,384
At 31 May 2024 18,280
NET BOOK VALUE
At 31 May 2024 131,971
At 31 May 2023 151,436

Cost or valuation at 31 May 2024 is represented by:

Patents
and
licences
£   
Valuation in 2018 19,509
Valuation in 2019 21,440
Valuation in 2020 10,905
Valuation in 2021 45,673
Valuation in 2022 47,967
Valuation in 2023 (33,943 )
Valuation in 2024 (22,093 )
Cost 60,793
150,251

IP addresses are included in intangible fixed assets at a valuation of £110,737 with no accumulated depreciation. They were valued on an open market basis on 31st May 2024 by the Directors.

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

9. TANGIBLE FIXED ASSETS
Office Computer
equipment equipment Totals
£    £    £   
COST
At 1 June 2023 4,163 1,624,948 1,629,111
Additions - 566,560 566,560
At 31 May 2024 4,163 2,191,508 2,195,671
DEPRECIATION
At 1 June 2023 2,675 696,711 699,386
Charge for year 496 225,758 226,254
At 31 May 2024 3,171 922,469 925,640
NET BOOK VALUE
At 31 May 2024 992 1,269,039 1,270,031
At 31 May 2023 1,488 928,237 929,725

10. STOCKS
31/5/24 31/5/23
£    £   
Stocks 32,705 49,782

Stock at the year-end relates to consumables used in the course of the business.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/5/24 31/5/23
£    £   
Trade debtors 1,139,344 1,120,553
Amounts owed by group undertakings 1,469,146 707,147
Other debtors 112,016 65,926
Prepayments 329,848 241,481
3,050,354 2,135,107

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/5/24 31/5/23
£    £   
Trade creditors 1,348,502 930,239
Amounts owed to group undertakings 988,640 208,814
Social security and other taxes 88,129 68,338
VAT 213,996 122,583
Other creditors 15,775 12,891
Accrued expenses and deferred
income 1,406,151 1,519,934
4,061,193 2,862,799

13. SECURED DEBTS

Bank facilities are secured by a floating and a fixed charge which covers all property or undertakings of the company.

RAZORBLUE LTD (REGISTERED NUMBER: 05824001)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

14. PROVISIONS FOR LIABILITIES
31/5/24 31/5/23
£    £   
Deferred tax 350,501 270,290

Deferred
tax
£   
Balance at 1 June 2023 270,290
Accelerated capital allowances 85,734
Revaluation of intangibles (5,523 )
Balance at 31 May 2024 350,501

The expected reversal of deferred tax liabilities in 2025 is £51,349. This relates to the reversal of existing timing differences on tangible fixed assets.

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/5/24 31/5/23
value: £    £   
1,000 Ordinary £1 1,000 1,000

16. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 June 2023 890,760 84,841 975,601
Profit for the year 766,211 766,211
Dividends (604,536 ) (604,536 )
Transfer 16,570 (16,570 ) -
At 31 May 2024 1,069,005 68,271 1,137,276

17. ULTIMATE PARENT COMPANY

Razorblue Group Ltd is regarded by the directors as being the company's ultimate parent company.

18. RELATED PARTY DISCLOSURES

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

19. PENSION COMMITMENTS

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represent contributions payable by the company to the fund and amounted to £177,606 (2023 - £126,140). Contribution totalling £Nil (2023 - £Nil) were payable to the fund at the reporting date.