REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
ARCANUM INFORMATION SECURITY LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
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: |
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. |
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: |
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. |
Baird House |
Seebeck Place |
Knowlhill |
Milton Keynes |
Buckinghamshire |
MK5 8FR |
ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907) |
STATEMENT OF COMPREHENSIVE |
INCOME |
For The Year Ended 30 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(369,767 | ) | 817,806 |
Income from shares in group undertakings |
Interest receivable and similar income |
24 | 8,030 |
(LOSS)/PROFIT BEFORE TAXATION | 5 | ( |
) |
Tax on (loss)/profit | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
ARCANUM INFORMATION SECURITY LIMITED (REGISTERED NUMBER: 06567907) |
BALANCE SHEET |
30 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 6 |
Investments | 7 |
CURRENT ASSETS |
Debtors | 8 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 10 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 11 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
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 were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 April 2024 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Improvements to property | - |
Fixtures & equipment | - |
Motor vehicles | - |
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 |
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 |
6. | TANGIBLE FIXED ASSETS |
Improvements |
to | Plant and | Fixtures | Motor |
property | machinery | & equipment | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
7. | FIXED ASSET INVESTMENTS |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Ty Penywaun, Mountain Road, Bedwas, Caerphilly CF83 8ER |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) |
Registered office: Royal Quays Business Centre, Coble Dene, North Shields NE29 6DE |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the period/year |
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 |
Amounts owed by group undertakings |
Prepayments |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 208,944 | 203,894 |
Directors' current accounts | 3,870 | 2,559 |
Accrued expenses |
10. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 May 2023 |
Movement | 2,387 |
Balance at 30 April 2024 |
11. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | 1 | 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. |