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REGISTERED NUMBER: 06567907 (England and Wales)
























STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

FOR

ARCANUM INFORMATION SECURITY LIMITED

ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 30 April 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Accountants' Report 5

Statement of Comprehensive Income 6

Balance Sheet 7

Statement of Changes in Equity 8

Notes to the Financial Statements 9


ARCANUM INFORMATION SECURITY LIMITED

COMPANY INFORMATION
For The Year Ended 30 April 2024







DIRECTORS: J A Chappell
L A Abercrombie
R N Wardle





SECRETARY: J A Chappell





REGISTERED OFFICE: Ty Penywaun
Mountain Road
Bedwas
Caerphilly
CF83 8ER





REGISTERED NUMBER: 06567907 (England and Wales)





ACCOUNTANTS: TC Group
Baird House
Seebeck Place
Knowlhill
Milton Keynes
Buckinghamshire
MK5 8FR

ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

STRATEGIC REPORT
For The Year Ended 30 April 2024


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

CORPORATE STRUCTURE AND BUSINESS MODEL
Arcanum is a Limited Company registered in England and incorporated in 2008. The business was founded by three retired military officers and still draws its ethos and most of its staff from the Armed Forces. The Management Board comprises two Directors who are the shareholders and a Managing Director supported by a small management team. The business hires predominantly for cultural fit and specific skill sets. Arcanum operates a consulting business model with highly experienced staff delivering security expertise to clients' short- and long-term projects.

REVIEW OF BUSINESS
Arcanum's ongoing success has been achieved by delivering high quality security consultancy to Government, Defence, Critical National Infrastructure and private sectors. In 2018 Arcanum was certified by the National Cyber Security Centre (NCSC)to deliver risk management expertise to the public sector. It is now one of only four consultancies in the UK certified by the NCSC to deliver these and the additional services of CHECK Penetration Testing and Cyber Resilience Audit. It is one of only 24 companies certified to supply these four services.

In August 2022 Arcanum acquired an 80% share of Security Risk Management Ltd which extends the range of audit services to deliver Payment Card Industry Data Security Standard compliance.

Arcanum turnover for the year was £4,541,791 (2023 - £4,009,657). The Director's anticipate the company will continue to show a rise in turnover during the next financial year.

The Directors consider the overall results for the year to be very good. Full time staff numbers amount to 60 during the accounting year.

BUSINESS STRATEGY AND OBJECTIVES
The long-term company strategy is continued expansion into the private sector specifically with its Operational Technology security services for Industrial Control Systems, where it expects to achieve increased sustained growth during the next three 3 years.

MARKET OVERVIEW
The UK government put in place the National Cyber Security Strategy 2022-2025, supported by £2.6 billion (bn) of investment. This has increased the cyber awareness of UK businesses. In the UK Government Cyber Security Sectoral Analysis 2024 the UK Security Market was valued at £11.9bn; an increase of 13% since last year. The UK cyber security workforce of full time employees is now estimated as being 136,800 with annual growth averaging 5% (Govt study: Cyber Security Skills in the UK Labour Market 2024). The UK cyber security market is still the most concentrated and accessible in Europe.

Arcanum is one of 258 medium sized cyber security businesses which form 12% of the registered companies within the sector (UK Govt Sector Analysis 2024). Of these, 71% provide dedicated cyber security products of services, with Arcanum still being one of the few independent consultancies.

PRINCIPAL RISKS AND UNCERTAINTIES
The Board of Directors carried out an assessment of the risks within the company and identified that
dependency on one market sector is the principal business risk. Since 2017 Arcanum has promoted its Cyber Security Services within the private sector to provide diversification to its long-established presence in the Defence and Public Sector.

GREENHOUSE EMISSIONS
Arcanum does not have any physical manufacturing assets or a main office. Employees have worked from home since the business was founded. Business travel and commuting to client sites amounts to approximately 120,000 miles during this financial year.

EMPLOYMENT POLICY
The company employment policy is detailed in the Arcanum Staff Handbook. Arcanum is committed to
promoting diversity in the workplace. Arcanum recognises and implements the requirements of The Reserve Forces Act 1996 and holds a Gold award as a member of the Defence Employer Recognition Scheme. Arcanum is a Living wage accredited employer and is committed to valuing employee diversity and dignity in how the company operates.


ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

STRATEGIC REPORT
For The Year Ended 30 April 2024

ENVIRONMENTAL, SOCIAL AND HUMAN RIGHTS POLICY
Arcanum does not have a formal human rights policy. The Director's aim to conduct the Company's affairs responsibly and are committed to conducting business with integrity and fairness. Arcanum is committed to minimise its impact on the environment using train travel wherever possible. Arcanum also operates an electric car scheme. All Arcanum's decommissioned IT and telephone assets are recycled through the WeeeCharity, Warrington, Charity Number: 1169658.

INDEMNITY INSURANCE
Arcanum has general and cyber liability insurance to indemnify the Directors and employees of the company against third party proceedings while employed by Arcanum. These indemnity policies subsist throughout the year and remain in place at the date of this report.

ON BEHALF OF THE BOARD:





J A Chappell - Director


17 January 2025

ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

REPORT OF THE DIRECTORS
For The Year Ended 30 April 2024


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

PRINCIPAL ACTIVITY
The principal activity of the company is the provision and delivery of a wide range of Cyber Security and digital forensic services.

FUTURE DEVELOPMENTS
The Directors do not foresee any major changes in the activity undertaken by the Company in the coming year. The Company continues with its objective to achieve high growth while minimising the risks and providing both capital growth and dividend income to Shareholders over the long term.

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

J A Chappell
L A Abercrombie
R N Wardle

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:





J A Chappell - Director


17 January 2025

ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS
ON THE UNAUDITED FINANCIAL STATEMENTS OF
ARCANUM INFORMATION SECURITY LIMITED



In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of the company from the company's accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of the company, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of the company and state those matters that we have agreed to state to the Board of Directors of the company, as a body, in this report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that the company has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of the company. You consider that the company is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of the company. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.






TC Group
Baird House
Seebeck Place
Knowlhill
Milton Keynes
Buckinghamshire
MK5 8FR


17 January 2025

ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

STATEMENT OF COMPREHENSIVE
INCOME
For The Year Ended 30 April 2024

2024 2023
Notes £    £    £    £   

TURNOVER 4,541,791 4,009,657

Cost of sales 4,022,800 2,516,358
GROSS PROFIT 518,991 1,493,299

Administrative expenses 888,758 675,493
(369,767 ) 817,806

Income from shares in group undertakings - 8,030
Interest receivable and similar income 24 -
24 8,030
(LOSS)/PROFIT BEFORE TAXATION 5 (369,743 ) 825,836

Tax on (loss)/profit (168,873 ) 161,081
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (200,870 ) 664,755

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(200,870

)

664,755

ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

BALANCE SHEET
30 April 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 6 56,088 50,656
Investments 7 - -
56,088 50,656

CURRENT ASSETS
Debtors 8 1,017,279 1,064,010
Cash at bank 1,260,292 1,739,057
2,277,571 2,803,067
CREDITORS
Amounts falling due within one year 9 367,819 513,400
NET CURRENT ASSETS 1,909,752 2,289,667
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,965,840

2,340,323

PROVISIONS FOR LIABILITIES 10 8,410 6,023
NET ASSETS 1,957,430 2,334,300

CAPITAL AND RESERVES
Called up share capital 11 60 60
Capital redemption reserve 30 30
Retained earnings 1,957,340 2,334,210
SHAREHOLDERS' FUNDS 1,957,430 2,334,300

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

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:





J A Chappell - Director


ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 30 April 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 May 2022 60 1,749,955 30 1,750,045

Changes in equity
Dividends - (80,500 ) - (80,500 )
Total comprehensive income - 664,755 - 664,755
Balance at 30 April 2023 60 2,334,210 30 2,334,300

Changes in equity
Dividends - (176,000 ) - (176,000 )
Total comprehensive income - (200,870 ) - (200,870 )
Balance at 30 April 2024 60 1,957,340 30 1,957,430

ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 April 2024


1. STATUTORY INFORMATION

Arcanum Information Security Limited 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.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover represents net invoiced sales of services, excluding value added tax, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 33% on cost
Fixtures & equipment - 33% on cost
Motor vehicles - 25% on reducing balance

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 60 (2023 - 38 ) .

4. EXCEPTIONAL ITEMS
2024 2023
£    £   
Exception items group loans
written off (167,525 ) (130,000 )

ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 April 2024


Included within administrative expenses is is an exceptional cost £167,525 (2023 - £130,000) relating to inter group company loans written off.

5. (LOSS)/PROFIT BEFORE TAXATION

The loss (2023 - profit) is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 43,885 32,527

6. TANGIBLE FIXED ASSETS
Improvements
to Plant and Fixtures Motor
property machinery & equipment vehicles Totals
£    £    £    £    £   
COST
At 1 May 2023 54,702 - 78,948 24,208 157,858
Additions 21,176 7,392 20,749 - 49,317
At 30 April 2024 75,878 7,392 99,697 24,208 207,175
DEPRECIATION
At 1 May 2023 28,138 - 58,177 20,887 107,202
Charge for year 25,292 1,232 16,531 830 43,885
At 30 April 2024 53,430 1,232 74,708 21,717 151,087
NET BOOK VALUE
At 30 April 2024 22,448 6,160 24,989 2,491 56,088
At 30 April 2023 26,564 - 20,771 3,321 50,656

7. FIXED ASSET INVESTMENTS

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Arcanum Digital Forensics Ltd
Registered office: Ty Penywaun, Mountain Road, Bedwas, Caerphilly CF83 8ER
Nature of business: Digital forensics
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves - 10
Loss for the year - (32,466 )

Security Risk Management Ltd
Registered office: Royal Quays Business Centre, Coble Dene, North Shields NE29 6DE
Nature of business: Cyber security
%
Class of shares: holding
Ordinary 80.00
30.4.24 30.6.23
£    £   
Aggregate capital and reserves (62,564 ) (261,210 )
Profit for the period/year 198,646 235,968

ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 April 2024


8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 990,108 918,683
Amounts owed by group undertakings - 128,030
Prepayments 27,171 17,297
1,017,279 1,064,010

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,648 8,451
Corporation tax - 159,409
Social security and other taxes 98,624 74,938
VAT 208,944 203,894
Directors' current accounts 3,870 2,559
Accrued expenses 54,733 64,149
367,819 513,400

10. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 8,410 6,023

Deferred
tax
£   
Balance at 1 May 2023 6,023
Movement 2,387
Balance at 30 April 2024 8,410

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
30 A Ordinary 1 30 30
30 B Ordinary 1 30 30
60 60

12. RELATED PARTY DISCLOSURES

During the year Arcanum Information Security Limited wrote off £167,525 of intercompany group loans loans (2023 - £130,000).

13. ULTIMATE CONTROLLING PARTY

The directors each hold 50% of the ordinary share capital.