Company registration number 15445336 (England and Wales)
SENSEE OPERATIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2024
Tavistock House South
Tavistock Square
Rayner Essex LLP
London
Chartered Accountants
WC1H 9LG
SENSEE OPERATIONS LTD
COMPANY INFORMATION
Directors
Mr S M Mosser
(Appointed 29 January 2024)
Ms B Gratton
(Appointed 1 May 2024)
Mr A Kilgour
(Appointed 1 May 2024)
Mr P G Smith
(Appointed 29 January 2024)
Company number
15445336
Registered office
The Clockwork Building
45 Beavor Lane
London
W6 9AR
Auditor
Rayner Essex LLP
Tavistock House South
Tavistock Square
London
WC1H 9LG
SENSEE OPERATIONS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
SENSEE OPERATIONS LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the Period ended 30 April 2024.
Review of the business
The group in which the company is a member has had a strong year of growth, with Revenue at £30.9m, a 15% increase from £26.9m the prior year. Overall group operating profit improved from £0.0m to £0.3m, however this takes into account losses incurred in the last 3 months of the year following the acquisition of the assets of The Contact Company Ltd on Feb 5th 2024, an office based contact centre business based in Birkenhead.
The Contact Company has bought a number of benefits to the group, notably important client contracts and access to government framework contracts. Whilst the group has benefited from the normalisation of home working following the Covid-19 pandemic, we have found that some clients prefer call centre operations to be in-building. The acquisition has enabled us to offer hybrid solutions that provide office based working as well as the efficiency advantages of the group’s microscheduling approach for home-working. Microscheduling is where agents are rostered for shifts in small increments (30 minutes) that better match call centre demand than a fixed shift pattern.
The underlying operating profit improvement in the Group was driven by better operational performance, informed by updated HR and MI systems, whilst still supporting investment in business development activity. In parallel the group has also continued its strategy of diversification by investing in R&D activities to develop the SaaS side of the group (Cloudworks) and support other organisations in their shift towards homeworking and hybrid working.
Principal risks and uncertainties
Financial risk management
The company uses financial instruments comprising bank facilities and cash, together with various items such as trade debtors and trade creditors that arise directly from its operations.
The main risks arising from the financial instruments are interest rate risk and liquidity risk. The directors review and agree policies for managing these risks as detailed below.
Bank balances are structured so as to enable cash to be available when required. Most are instant access accounts. No transactions in derivatives are undertaken.
Interest rate risk
The company finances its operations through a mixture of inter group loans and invoice discounting facilities. The company accepts the risk attached to interest rate fluctuations as interest remains a small proportion of operating costs. The fluctuations are limited to changes to the Bank of England base rate.
Liquidity risk
The company manages liquidity risk by a combination of controls such as monitoring gearing levels and ensuring facilities are readily available for future use.
Credit risk
The company currently has credit risk exposure due to a small number of customers. However, this risk is minimised as these customers are large corporate blue chip companies.
Other risks and uncertainties facing the group include:
The strengths and performance of the economy as a whole
The outsourced call centre sector remaining a highly competitive market
The retention of valued employees
The recruitment of operatives to fulfil new contracts when required
Customers continually changing own strategies towards outsourcing
SENSEE OPERATIONS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 2 -
Key performance indicators
The directors use a number of measures, both financial and non-financial to monitor and benchmark the performance of the company. They regard the following as key financial indicators of performance:
Gross profit - measuring the profits generated by the company's operations on a contract by contract basis.
Percentage of agents payable hours invoiced to clients - measuring profitability and recoverability of direct labour costs.
Net cash flow from operating activities - measuring the performance in translating operating profit into cash flow through management of working capital.
The key non-financial indicators are associated with the company's ability to maintain its existing customer base and to attract new customers. In addition, the level of direct labour head count is key to fulfilling contracts and ensuring service levels are maintained.
Ms B Gratton
Director
31 January 2025
SENSEE OPERATIONS LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the Period ended 30 April 2024.
Principal activities
The company was incorporated on 26 January 2024 and commenced trading on 5 February 2024. The principal activity of the company is that of a office based call centre.
Results and dividends
The results for the Period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
Mr S M Mosser
(Appointed 29 January 2024)
Ms B Gratton
(Appointed 1 May 2024)
Mr A Kilgour
(Appointed 1 May 2024)
Mr P G Smith
(Appointed 29 January 2024)
Mr C Sunter
(Appointed 26 January 2024 and resigned 29 January 2024)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
During the period, the directors appointed Rayner Essex as company auditors.
In accordance with the company's articles, a resolution proposing that Rayner Essex LLP be reappointed as auditor of the company will be put at a General Meeting.
SENSEE OPERATIONS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Ms B Gratton
Director
31 January 2025
SENSEE OPERATIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SENSEE OPERATIONS LTD
- 5 -
Opinion
We have audited the financial statements of Sensee Operations Ltd (the 'company') for the Period ended 30 April 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 30 April 2024 and of its loss for the Period 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.
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 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.
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 our 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.
SENSEE OPERATIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SENSEE OPERATIONS LTD (CONTINUED)
- 6 -
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 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, 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 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 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.
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.
The extent to which the audit was considered capable of detecting irregularities including fraud
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 discussion with the directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery and employment regulations;
we assessed the extend of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
SENSEE OPERATIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SENSEE OPERATIONS LTD (CONTINUED)
- 7 -
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries 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 to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation
reading the meeting minutes of these charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and relevant regulators.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Simon Essex FCA
Senior Statutory Auditor
For and on behalf of Rayner Essex LLP
31 January 2025
Chartered Accountants
Statutory Auditor
Tavistock House South
Tavistock Square
London
WC1H 9LG
SENSEE OPERATIONS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 APRIL 2024
- 8 -
3 month period
ended
30 April
2024
Notes
£
Turnover
3
4,935,336
Cost of sales
(3,780,135)
Gross profit
1,155,201
Administrative expenses
(1,339,969)
Loss before taxation
(184,768)
Tax on loss
6
Loss for the financial Period
(184,768)
The income statement has been prepared on the basis that all operations are continuing operations.
SENSEE OPERATIONS LTD
STATEMENT OF FINANCIAL POSITION
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
Notes
£
£
Fixed assets
Negative goodwill
7
(73,727)
Other intangible assets
7
174,999
Total intangible assets
101,272
Tangible assets
8
66,713
167,985
Current assets
Debtors
9
5,412,840
Cash at bank and in hand
69,106
5,481,946
Creditors: amounts falling due within one year
10
(5,834,698)
Net current liabilities
(352,752)
Net liabilities
(184,767)
Capital and reserves
Called up share capital
12
1
Profit and loss reserves
13
(184,768)
Total equity
(184,767)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
Ms B Gratton
Director
Company registration number 15445336 (England and Wales)
SENSEE OPERATIONS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 26 January 2024
-
Period ended 30 April 2024:
Loss and total comprehensive income
-
(184,768)
(184,768)
Issue of share capital
12
1
-
1
Balance at 30 April 2024
1
(184,768)
(184,767)
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information
Sensee Operations Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Clockwork Building, 45 Beavor Lane, London, W6 9AR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Sensee Holding Limited. These consolidated financial statements are available from www.companieshouse.gov.uk.
1.2
Going concern
The company is a member of the Sensee Holding Group.true
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. On 26 January 2024 the group secured a £1.5m 3 year loan from its shareholders which supports this view. In addition, in July 2024 the Group entered into a new Invoice Discounting agreement with one provider for the whole group, resulting in an increase in drawdown percentage and an increase in the overall facility level creating additional funding and headroom. The validity of this assumption depends upon the continued financial support of the shareholders.
The group has prepared forecasts and projections, which support its ability to continue trading taking into account the bank facilities and continued support of the shareholders referred to above. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The financial statements do not include any adjustment that would result from the withdrawal of the continued support described above.
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Turnover is recognised at the point that a call is recorded by the customer service advisors.
1.4
Intangible fixed assets - goodwill
Negative goodwill represents the excess of the fair value of net assets acquired over the cost of acquisition of a business. It is initially recognised as a negative intangible non-current asset at the residual value on acquisition and is subsequently measured at residual less accumulated amortisation. Negative goodwill is considered to have a finite useful life and is amortised on a straight line basis over the remaining life of the identifiable assets acquired.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Contracts
Over the remaining life of the contracts
Other intangibles
Over 5 years
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% reducing balance
Computer equipment
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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 measured 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.
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.
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
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 or 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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing 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 or 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 liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover
2024
£
Turnover analysed by class of business
Office-based customer service advisors to call centres
4,935,336
2024
£
Turnover analysed by geographical market
United Kingdom
4,935,336
4
Operating loss
2024
Operating loss for the period is stated after charging/(crediting):
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,000
Depreciation of owned tangible fixed assets
5,160
Amortisation of intangible assets
24,999
Release of negative goodwill
(390,713)
Operating lease charges
79,200
5
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2024
Number
Directors
2
Admin
64
Agents
646
Total
712
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
£
Wages and salaries
3,164,468
Social security costs
222,816
Pension costs
49,453
3,436,737
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 18 -
6
Taxation
The actual charge for the Period can be reconciled to the expected credit for the Period based on the profit or loss and the standard rate of tax as follows:
2024
£
Loss before taxation
(184,768)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00%
(46,192)
Tax effect of expenses that are not deductible in determining taxable profit
(73,740)
Unutilised tax losses carried forward
100,355
Group relief
28,573
Permanent capital allowances in excess of depreciation
(8,996)
Taxation charge for the period
-
7
Intangible fixed assets
Negative goodwill
Contracts
Other intangibles
Total
£
£
£
£
Cost
At 26 January 2024
-
Additions
(464,440)
199,994
4
(264,442)
At 30 April 2024
(464,440)
199,994
4
(264,442)
Amortisation and impairment
At 26 January 2024
-
Amortisation charged for the Period
(390,713)
24,999
-
(365,714)
At 30 April 2024
(390,713)
24,999
-
(365,714)
Carrying amount
At 30 April 2024
(73,727)
174,995
4
101,272
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 19 -
8
Tangible fixed assets
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 26 January 2024
Additions
7,960
43,498
20,415
71,873
At 30 April 2024
7,960
43,498
20,415
71,873
Depreciation and impairment
At 26 January 2024
Depreciation charged in the Period
463
3,509
1,188
5,160
At 30 April 2024
463
3,509
1,188
5,160
Carrying amount
At 30 April 2024
7,497
39,989
19,227
66,713
9
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
4,945,693
Prepayments and accrued income
467,147
5,412,840
10
Creditors: amounts falling due within one year
2024
£
Trade creditors
694,911
Amounts owed to group undertakings
1,212,862
Taxation and social security
909,293
Other creditors
2,364,893
Accruals and deferred income
652,739
5,834,698
Included in other creditors is a factoring advance of £2,315,250 from IGF which is secured by way of fixed and floating charges over the company's assets.
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 20 -
11
Retirement benefit schemes
2024
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
49,453
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
12
Share capital
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1
1
On incorporation of the company 1 Ordinary Share of £1 each was issued and fully paid at par.
13
Reserves
Profit and loss reserves
This reserve includes all current and prior period retained profits and losses.
14
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
£
Within one year
181,029
15
Related party transactions
During the period, the company entered into the following transactions with related parties:
In order to support the initial set-up of the company and the trade, a fellow subsidiary company paid for the business transactions of the company. A balance of £1,212,862 was outstanding at the period end. The loan has been made interest free.
16
Ultimate controlling party
The parent undertaking and ultimate controlling party is Sensee Holding Limited, a company registered in England and Wales at The Clockwork Building, 45 Beavor Lane, London, W6 9AR.
SENSEE OPERATIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 21 -
17
Business combinations
18
Off balance sheet arrangements
The company has fixed and floating charges over its assets in respect of fellow group companies debt in
connection with the groups invoice financing arrangements. No outflow of resource is expected.
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