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Registered number: 01408275










SIGHT AND SOUND TECHNOLOGY LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
COMPANY INFORMATION


Directors
G V Tookey 
R J Denning 




Registered number
01408275



Registered office
Equilibrium House
Mansion Close

Moulton Park Industrial Estate

Northampton

Northamptonshire

NN3 6RU




Independent auditor
MHA
Statutory Auditors

Century House

The Lakes

Northampton

NN4 7HD





 
SIGHT AND SOUND TECHNOLOGY LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Balance Sheet
 
10 - 11
Statement of Cash Flows
 
12 - 13
Analysis of Net Debt
 
14
Notes to the Financial Statements
 
15 - 31


 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024

Introduction
 
The directors present their Strategic Report for the period ended 31 March 2024.

Business review
 
Sight and Sound Technology Limited has a highly successful period ending March 31 2024. We extended our accounting period from 12 to 17 months to align with a new venture that we have established, called Study Tech Limited.
Study Tech Limited was formed as a 50/50 Joint Venture with Assistive Solutions Limited to operate a £200m contract that together we were awarded for delivery of assessments, equipment, training and support for students receiving Disabled Students Allowance in England and Wales. The contract runs for 3 years with two potential extensions of 1 further year. This contract has transformed the Seckloe Group as both of its operating companies, Sight and Sound Technology Limited and Access Assessment Centres Limited will subcontract to Study Tech for key elements of the contract.
Our operations in Scotland grew significantly as well as more Universities and Colleges selected Sight and Sound Technology as the provider for their students taking Disabled Students Allowance funded by the Scottish Academic Advisory Service (SAAS). We also grew gross margin in this operation, further increasing net contribution to the overall Group.
Our Irish operation felt the headwind of competition towards the end of the 17-month period, posting a lower turnover, although gross margin was increased and this business gain supported itself.
Our Blind and Low Vision (BLV) technology business performed well, our Master Distribution of software for Blind and VI grew again and whilst new products contributed to hardware sales and profits.  The consolidation of the supply chain in BLV markets has challenged our previous market differentiation, so we were pleased to establish a number of exclusive distribution contracts in this market that will re-establish our unique high quality offering, which coupled with our trademark technical support service, promises to re-ignite growth in hardware and cement our clear leadership in this market across UK and Ireland.
 

Principal risks and uncertainties
 
The major risk to the Company will be in establishing our new portfolio in the BLV market, however tight cost control in the new DSA contract will allow for significant growth in contribution and profit which will allow for investment in the BLV brand, largely removing any company wide risk.
Currency risk
The Company faces currency risk on currency transaction flows to suppliers. It mitigates the risk by the use of foreign currency bank accounts and forward currency contracts for up to 12 months ahead.
Cash flow risk
The Company seeks to ensure it has sufficient liquidity available to meet foreseeable needs. Liquidity is constantly monitored and controlled via budgeting and cashflow forecasting. 
Credit risk
All customers who wish to trade on credit terms are subject to credit vetting procedures, and debtors are monitored on an ongoing basis.

Page 1

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024

Financial key performance indicators
 
     2024   2022   % change 
Turnover     £24,104,745  £11,977,923  101.2%
Operating margin    5.8%   3.3%   2.6%


This report was approved by the board and signed on its behalf.



................................................
G V Tookey
Director

Date: 30 January 2025

Page 2

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024

The directors present their report and the financial statements for the period ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the 17 month period, after taxation, amounted to £1,099,031 (Year ended 31 October 
2022 - £309,418).

Dividends declared and paid during the year totalled £Nil (2022 - £Nil).

Directors

The directors who served during the period were:

G V Tookey 
R J Denning 

Future developments

The directors intend for the Company to continue its strategy of organic growth.

Page 3

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

Following a rebranding exercise on 15 May 2023 the trading name of the Company’s independent auditor changed from MHA MacIntyre Hudson to MHA. 
 
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
G V Tookey
Director

Date: 30 January 2025

Page 4

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIGHT AND SOUND TECHNOLOGY LIMITED
 

Opinion


We have audited the financial statements of Sight and Sound Technology Limited (the 'Company') for the period ended 31 March 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 March 2024 and of its profit 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 5

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIGHT AND SOUND TECHNOLOGY LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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


Matters on which we are required to report by exception
 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent Company, or returns adequate for our    audit have not been received from branches not visited by us; or
• the parent Company financial statements are not in agreement with 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; or
• the directors were not entitled to prepare the financial statements in accordance with the small     companies regime and take advantage of the small companies’ exemptions in preparing the Directors’    Report and from the requirement to prepare a Group Strategic Report.


Page 6

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIGHT AND SOUND TECHNOLOGY LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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:

• Enquiry of management and those charged with governance around actual and potential litigation and    claims;
• Performing audit work over the risk of management override of controls, including testing of journal    entries and other adjustments for appropriateness, evaluating the business rationale of significant     transactions outside the normal course of business and revieing accounting estimates for bias;
• Reviewing minutes of meetings of those charged with governance;
• Reviewing financial statement disclosures and testing supporting documentation to assess compliance 
 with applicable laws and regulations.


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 Auditor's Report.


Page 7

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIGHT AND SOUND TECHNOLOGY LIMITED (CONTINUED)


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 2006Our 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.





Richard Powell BA FCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditors
  
Northampton, United Kingdom

Date: 5 February 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partershop in England and Wales (registered number OC312313) 
Page 8

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 31 MARCH 2024

17 month period ended
2024
Year ended 30 September
2022
£
£

  

Turnover
 4 
24,104,745
11,977,923

Cost of sales
  
(18,004,116)
(8,863,559)

Gross profit
  
6,100,629
3,114,364

Distribution costs
  
(2,660,087)
(1,530,642)

Administrative expenses
  
(2,032,485)
(1,196,858)

Other operating income
 5 
(1,055)
2,734

Operating profit
 6 
1,407,002
389,598

Interest receivable and similar income
 10 
17,849
841

Interest payable and similar expenses
 11 
(11,590)
(10,959)

Profit before tax
  
1,413,261
379,480

Tax on profit
 12 
(314,230)
(70,062)

Profit after tax
  
1,099,031
309,418

  

  

Retained earnings at the beginning of the period
  
5,811,747
5,502,329

Profit for the period
  
1,099,031
309,418

Retained earnings at the end of the period
  
6,910,778
5,811,747
Page 9

 
SIGHT AND SOUND TECHNOLOGY LIMITED
REGISTERED NUMBER: 01408275

BALANCE SHEET
AS AT 31 MARCH 2024

31 March
31 October
2024
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
27,678
13,289

Tangible assets
 14 
195,913
165,864

Investments
 15 
600
100

  
224,191
179,253

Current assets
  

Stocks
 16 
1,794,676
475,084

Debtors: amounts falling due within one year
 17 
6,768,892
6,711,298

Cash at bank and in hand
 18 
952,795
587,216

  
9,516,363
7,773,598

Creditors: amounts falling due within one year
 19 
(2,606,384)
(1,793,389)

Net current assets
  
 
 
6,909,979
 
 
5,980,209

Total assets less current liabilities
  
7,134,170
6,159,462

Creditors: amounts falling due after more than one year
 20 
(116,667)
(258,333)

Provisions for liabilities
  

Deferred tax
 21 
(42,111)
(39,284)

Other provisions
 22 
(54,412)
(39,896)

  
 
 
(96,523)
 
 
(79,180)

Net assets
  
6,920,980
5,821,949


Capital and reserves
  

Called up share capital 
 23 
10,202
10,202

Profit and loss account
 24 
6,910,778
5,811,747

  
6,920,980
5,821,949


Page 10

 
SIGHT AND SOUND TECHNOLOGY LIMITED
REGISTERED NUMBER: 01408275
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
G V Tookey
Director

Date: 30 January 2025

The notes on pages 15 to 31 form part of these financial statements.

Page 11

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024

31 March
31 October
2024
2022
£
£

Cash flows from operating activities

Profit for the financial period
1,099,031
309,418

Adjustments for:

Amortisation of intangible assets
12,394
10,144

Depreciation of tangible assets
79,396
46,583

Loss on disposal of tangible assets
(1,140)
-

Government grants
1,075
-

Interest paid
11,590
10,959

Interest received
(17,849)
(841)

Taxation charge
314,230
70,062

(Increase)/decrease in stocks
(1,319,592)
366,967

(Increase) in debtors
(51,076)
(419,780)

Decrease/(increase) in amounts owed by groups
199,697
(500,279)

(Increase)/decrease in amounts owed by joint ventures
(206,215)
-

Increase in creditors
544,180
37,330

Increase/(decrease) in provisions
14,516
(17,511)

Corporation tax (paid)
(63,320)
(98,689)

Net cash generated from operating activities

616,917
(185,637)


Cash flows from investing activities

Purchase of intangible fixed assets
(26,783)
-

Purchase of tangible fixed assets
(109,445)
(85,137)

Sale of tangible fixed assets
1,140
-

Government grants received
(1,075)
-

Purchase of share in joint ventures
(500)
-

Interest received
17,849
841

Net cash from investing activities

(118,814)
(84,296)

Cash flows from financing activities

Repayment of loans
(141,666)
(100,000)

Interest paid
(11,590)
(10,959)

Net cash used in financing activities
(153,256)
(110,959)

Net increase/(decrease) in cash and cash equivalents
344,847
(380,892)

Cash and cash equivalents at beginning of period
587,216
968,108
Page 12

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024

31 March
31 October

2024
2022

£
£


Cash and cash equivalents at the end of period
932,063
587,216


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
952,795
587,216

Bank overdrafts
(20,732)
-

932,063
587,216


Page 13

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 

ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 MARCH 2024




At 1 November 2022
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

587,216

361,156

948,372

Bank overdrafts

-

(16,309)

(16,309)

Debt due after 1 year

(258,333)

141,666

(116,667)

Debt due within 1 year

(100,000)

-

(100,000)


228,883
486,513
715,396

Page 14

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

1.


General information

Sight and Sound Technology Limited is a private company, limited by shares, incorporated in England and Wales, registered number 01408275. The registered office is Equilibrium House, Mansion Close, Moulton Park Industrial Estate, Northampton, Northamptonshire, NN3 6RU.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have performed a robust analysis of forecast future cash flows taking into account the potential impacts on the business of possible future scenarios. This analysis also considers the effectiveness of available measures to assist in mitigating any impacts.
A key risk on the business was the restructuring of the Disabled Students Allowance delivery arrangements. The Company has been successful in the ongoing tender, being awarded 2 of the 4 regions. The Company has formed a Joint Venture with another party to develop systems and to deliver the service for the contract which is scheduled to run until 2026 with the potential for 2 further years. This contract, which started in November 2023 will increase turnover and profit by a significant amount, requiring investment to scale to meet the needs of the contract. The directors believe that this contract will underpin the Company's financial health for many years to come.
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 15

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of income and retained earnings.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 16

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 17

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

 The estimated useful lives range as follows:

Computer software
-
up to 5 years straight line

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 18

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
10 years straight line
Motor vehicles
-
4 to 5 years straight line
Office equipment
-
3 years straight line
Computer equipment
-
up to 5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Associates and joint ventures

Associates and joint ventures are held at cost less accumulated impairment.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 19

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
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
Page 20

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)

derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily separated from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key sources of estimation uncertainty relate to depreciation and warranty provisions. The rates of depreciation applied to fixed assets are based on the experience of the business in the consumption of economic value of each class of asset. The warranty provision is based on management's best estimate of probable future economic costs.


4.


Turnover

The whole of the turnover is attributable to its principal activity.

Analysis of turnover by country of destination:

2024
2022
£
£

United Kingdom
23,538,272
11,238,746

Rest of Europe
566,473
739,177

24,104,745
11,977,923



5.


Other operating income

2024
2022
£
£

Government grants receivable
(1,075)
-

Sundry income
20
2,734

(1,055)
2,734


Page 21

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2022
£
£

Exchange differences
(971)
(43,201)

Operating lease rentals
150,217
125,338


7.


Auditor's remuneration

During the period, the Company obtained the following services from the Company's auditor:


2024
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
14,000
9,500


8.


Employees

Staff costs were as follows:


2024
2022
£
£

Wages and salaries
2,190,370
1,214,651

Social security costs
256,624
152,900

Cost of defined contribution scheme
110,195
53,755

2,557,189
1,421,306


The average monthly number of employees, including the directors, during the period was as follows:


        2024
        2022
            No.
            No.







Management
3
2



Sales and administration
39
33



Production and logistics
10
9

52
44

Page 22

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

9.


Directors' remuneration



The directors are remunerated by the Company's parent undertaking.
Key management personnel
Key management personnel are members of the management board. Total gross payments to key management personnel for the year amounted to £430,770 (2022 - £254,537). Total employers' national insurance contributions made on behalf of Key Management Personnel for the year amounted to £50,357 (2022 - £31,474). Total employers' pension contributions to key management personnel for the year amounted to £9,525 (2022 - £7,186).


10.


Interest receivable

2024
2022
£
£


Other interest receivable
17,849
841


11.


Interest payable and similar expenses

2024
2022
£
£


Bank interest payable
11,590
10,959


12.


Taxation


2024
2022
£
£

Corporation tax


Current tax on profits for the year
311,403
63,320


Total current tax
311,403
63,320

Deferred tax


Origination and reversal of timing differences
2,827
6,742

Total deferred tax
2,827
6,742


Tax on profit
314,230
70,062
Page 23

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
 
12.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2024
2022
£
£


Profit on ordinary activities before tax
1,413,261
379,480


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
353,315
72,101

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
201
447

Utilisation of tax losses
(355)
-

Short-term timing difference leading to an increase (decrease) in taxation
(47,896)
(2,486)

Non-taxable income
(1,752)
-

Tax rate change leading to a decrease in taxation
10,717
-

Total tax charge for the period/year
314,230
70,062


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

13.


Intangible assets






Computer software

£



Cost


At 1 November 2022
43,058


Additions
26,783


Disposals
(14,717)



At 31 March 2024

55,124



Amortisation


At 1 November 2022
29,769


Charge for the period on owned assets
12,394


On disposals
(14,717)



At 31 March 2024

27,446



Net book value



At 31 March 2024
27,678



At 31 October 2022
13,289



Page 25

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

14.


Tangible fixed assets







Leasehold improvements
Motor vehicles
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost


At 1 November 2022
110,518
16,693
40,241
384,506
551,958


Additions
8,856
11,000
21,074
68,515
109,445


Disposals
-
(16,693)
(14,603)
(255,348)
(286,644)



At 31 March 2024

119,374
11,000
46,712
197,673
374,759



Depreciation


At 1 November 2022
64,409
16,693
31,271
273,721
386,094


Charge for the period on owned assets
8,417
550
5,477
64,952
79,396


Disposals
-
(16,693)
(14,603)
(255,348)
(286,644)



At 31 March 2024

72,826
550
22,145
83,325
178,846



Net book value



At 31 March 2024
46,548
10,450
24,567
114,348
195,913



At 31 October 2022
46,109
-
8,970
110,785
165,864


15.


Fixed asset investments








Investments in subsidiary companies
Investment in joint ventures
Total

£
£
£



Cost


At 1 November 2022
100
-
100


Additions
-
500
500



At 31 March 2024
100
500
600





Page 26

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

16.


Stocks

31 March
31 October
2024
2022
£
£

Finished goods and goods for resale
1,794,676
475,084



17.


Debtors

31 March
31 October
2024
2022
£
£


Trade debtors
1,357,822
1,256,753

Amounts owed by group undertakings
4,672,871
4,872,568

Amounts owed by joint ventures and associated undertakings
206,215
-

Other debtors
461,010
425,849

Prepayments and accrued income
70,974
156,128

6,768,892
6,711,298



18.


Cash and cash equivalents

31 March
31 October
2024
2022
£
£

Cash at bank and in hand
952,795
587,216

Less: bank overdrafts
(20,732)
-

932,063
587,216


Page 27

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

19.


Creditors: Amounts falling due within one year

31 March
31 October
2024
2022
£
£

Bank overdrafts
20,732
-

Bank loans
100,000
100,000

Trade creditors
1,831,712
1,274,388

Amounts owed to group undertakings
150,099
150,099

Corporation tax
311,885
63,802

Other taxation and social security
60,315
39,011

Other creditors
55,719
20,629

Accruals and deferred income
75,922
145,460

2,606,384
1,793,389



20.


Creditors: Amounts falling due after more than one year

31 March
31 October
2024
2022
£
£

Bank loans
116,667
258,333



21.


Deferred taxation






2024
2022


£

£






At beginning of year
39,284
32,542


Charged to profit or loss
2,827
6,742



At end of year
42,111
39,284

Page 28

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
 
21.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

31 March
31 October
2024
2022
£
£


Accelerated capital allowances
50,116
39,896

Unpaid pensions
(8,005)
(612)

42,111
39,284


22.


Provisions






Warranty provision

£





At 1 November 2022
39,896


Charged to profit or loss
14,516



At 31 March 2024
54,412

The provision is in place in respect of warranties given to customers for stock items sold.

Page 29

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

23.


Share capital

31 March
31 October
2024
2022
£
£
Allotted, called up and fully paid



10,202 (2022 - 10,202) Ordinary shares of £1.00 each
10,202
10,202



24.


Reserves

Profit and loss account

The profit and loss account reserve includes all current and prior period retained profits and losses.


25.


Contingent liabilities

There is a fixed and floating charge over the assets of the Company in relation to loan notes and loans totalling £1,471,429 (2022 - £1,565,965) which are payable in the parent company.


26.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately to those of the Company in an independently administered fund. At 31 March 2023 outstanding contributions payable by the Company to the fund totalled £32,018 (2022 - £8,595).


27.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 March
31 October
2024
2022
£
£


Not later than 1 year
91,077
115,245

Later than 1 year and not later than 5 years
280,394
298,837

Later than 5 years
128,333
227,500

499,804
641,582

Page 30

 
SIGHT AND SOUND TECHNOLOGY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

28.Other financial commitments

The Company enters into foreign exchange forward contracts to hedge against adverse currency exchange movements. The Company has entered into foreign exchange forward contracts to buy US Dollars. The total net value of contracts outstanding at 31 March 2024 which are maturing post year end was £123,203 (2022 - £1,209,677).
The Company has provided a guarantee to HMRC of £50,000 (2022 - £50,000).


29.


Related party transactions

The Group is taking advantage of the provisions available under Section 33.1A of FRS 102 not to disclose transactions with members of a wholly owned group.
During the year, the Company made sales to the joint venture of £73,919 (2022 - £Nil) and purchases of £7,944 (2022 - £Nil).
As at 31 March 2024 the Company was owed £206,215 (2022 - £Nil) from and owed £7,944 (2022 - £Nil) to the joint venture.


30.


Parent company

The results of the Company are included in the consolidated financial statements of Seckloe 402 Limited, the parent company of the smallest group preparing consolidated accounts which include the results of the Company. The registered office of Seckloe 402 Limited is the same as the Company.
The ultimate controlling party is G V Tookey by way of his majority shareholding in Seckloe 402 Limited.

 
Page 31