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Registered number: 08362415









KAIZEN REPORTING LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2024

 
KAIZEN REPORTING LIMITED
 
 
COMPANY INFORMATION


Directors
Mr D M Crispini 
Mr D T Bryant 
Mr I G Rennie 
Mr R C McLaren 
Mr M P Luchmun 




Registered number
08362415



Registered office
30 St. Mary Axe

London

EC3A 8BF




Trading Address
30 St. Mary Axe

London

EC3A 8BF






Independent auditors
Halkin Lerman Davis Ltd

Beaumont Chancery

44 Southampton Buildings

London

WC2A 1AP





 
KAIZEN REPORTING LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 6
Independent Auditors' Report
 
7 - 10
Statement of Comprehensive Income
 
11
Balance Sheet
 
12
Statement of Changes in Equity
 
13 - 14
Statement of Cash Flows
 
15 - 16
Analysis of Net Debt
 
17
Notes to the Financial Statements
 
18 - 33


 
KAIZEN REPORTING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Introduction
 
The directors present their strategic report of the company and Kaizen Reporting Limited (KRL) for the year ended 31 January 2024.

Business review
 
I am pleased to report on another period of sustained progress for Kaizen Reporting Limited. This year has seen further progress in growing our solutions to further meet client needs as well as continued growth in our client base.
 
As a group, our Mission is to revolutionise compliance. By that we aim to reduce the cost of achieving compliance with regulatory obligations through the confluence of technology and regulatory expertise. We recognise that compliance is extremely difficult and where things go wrong in terms of reporting obligations, can very quickly add significant costs and stress as well as diverting management focus. Our aim is to lower the day to day costs of reporting compliance whilst increasing the confidence management and regulators have in the quality of their reported data. We provide this through our ReportShield suite of solutions.
 
Principal Activities
The principal activities of the firm are the development and provision of software driven solutions used in regulatory compliance in the financial services industry. More specifically, KRL operates as the leading provider of reporting assurance across the UK and EU.
KRL provides the most in-depth testing of reporting accuracy across multiple high volume and high complexity reporting obligations such as SFTR and MiFID. Additionally, KRL provides a comprehensive regulatory completeness solution which goes far beyond a simple reconciliation for each of the regulations we cover. We also support our clients by making our leading experts across each of the reporting regimes we cover available to them to address reporting questions, conduct reviews of their reporting controls or to assist in liaison with regulators. 
Corporate Restructuring
On 28 February 2023, the Kaizen group underwent a corporate restructuring to place all subsidiaries under a holding company Kaizen Regtech Group Limited.  This included KRL which divested of the subsidiaries and now sits as a KRGL 100% subsidiary.
External Investment
To aid the continued growth in the company during the period and subsequently, we have been engaged in a process to secure an investor into the Kaizen group.  The investment was completed on 31st October 2024 and we are pleased to welcome the support of Guidepost Growth Equity. Not only are they providing financial investment into the growth of the business but they bring a wealth of SAAS and capital markets experience and an extremely strong network of experts to Kaizen.   
Review of business
KRL continued to trade well during the period, with sales increasing 15% over the year and we continued expanding our pipeline of opportunities with both existing clients and prospects. We have also continued to provide clients with added value through our publications and our Reporting Community which hosts several very well attended events each year.


 
Page 1

 
KAIZEN REPORTING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024


We continue to progress with our optimisation programme. KRL has seen our headcount grow from 81 at the end of the previous financial year to 89 as at 31 January 2024. This increase in headcount represents increased investment in our solutions and resourcing to ensure we continue to provide a premium service to our clients as our client base increases.
Profitability for KRL improved with a showing a profit after tax of just over £1m for the year. To get a better view of profitability, I would point you in the direction of the group accounts as we have continued our strategy of reinvesting into our solutions across the group.
We continue to be selected as the assurance provider of choice for the leading financial firms. Our universal testing approach allows our clients to take full comfort from our assurance findings allowing them to prioritise and optimise improvements to their reporting systems. During the period we continued to invest heavily in ensuring we deliver the most comprehensive testing on the market alongside the most competitive pricing. 
Investments
Over the period we were active in pursuing our M&A strategy with the acquisition of CloudSinc, an early stage self-service reconciliation platform which is focused on the user experience.

Principal risks and uncertainties
 
Inflation 
We have experienced and continue to experience a period of sustained inflationary pressured. This has an impact on our cost base which is predominantly impacted by inflation in the technology sector. Following on from the pandemic there has been continued upward wage pressure and cost of the technologies we use within KRL. We have been carefully managing this issue and we are pleased to say that clients have recognised the transition from a stable low inflation environment to a more unpredictable high inflation environment.
Regulatory Environment
 
The regulatory environment, i.e. the focus of regulators and their appetite to take action against firms, s very difficult to assess.  It is clearly impacted by geopolitical events and we are seeing anti-regulatory rhetoric from the US which may impact the reporting regulations but will certainly impact the overall regulatory environment and consequently the budgets that firms allocate to their overall reporting framework. We are also seeing continued focus on the competitiveness of the UK and the new competitiveness obligation that is now placed on the FCA. These changes obviously impact how regulators will operate going forward and we can therefore expect that there will be efforts to reduce the burden that reporting represents. This is most likely to be applied in the UK MiFIR re-write which is currently under review.       
Competition
Pricing pressure on client budgets is the primary business risk we face whilst competition from consultancies and other assurance firms over the period remains. We expect the need for senior management to know their reporting position to drive continued sales of our assurance services as this is the only way to get this view through our deep testing. Other light-weight alternatives leave senior management unsighted and open to challenge by regulators.
Intellectual Property 
A constant risk for Kaizen has been the protection of our intellectual property. Much of this relates to our testing methodology and the specific tests we have designed. We take all measures we can to prevent leakage of our IP and will use legal measures if evidence of IP misuse is identified.

 
Page 2

 
KAIZEN REPORTING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

People
We have worked hard to build a great culture at Kaizen and to look after and develop our people. This has resulted in a low voluntary attrition rate over the period. People like working here. Continued high demand for expertise in both regulation and technology spheres could represent a risk on the cost side of the business and potentially disruptive changes in personnel. We continue to operate a hybrid model allowing staff flexibility in their working arrangements where we can. This is working well and we have seen high levels of productivity under this model. There is, however, a risk that productivity falls away as teams spend less time together and are exposed to fewer serendipitous conversations. We are closely monitoring this and are looking to improve communications across the business to counteract any impact of remote working and working in a larger organisation.

Financial key performance indicators
 
Year Ended 31st January    
                                                     
2024 (£)            2023 (£)               Growth
Turnover                                     15,269,398         13,340,310                15%         
Operating Profit/(Loss)                  1,029,970         (2,732,366)               138% 
Cash Balance                              2,522,438           1,133,159                123% 


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



Mr D M Crispini
Director

Date: 17 February 2025

Page 3

 
KAIZEN REPORTING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The directors present their report and the financial statements for the year ended 31 January 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 year, after taxation, amounted to £1,117,814 (2023 - loss £1,069,229).

Enter text here - user input

Directors

The directors who served during the year were:

Mr D M Crispini 
Mr D T Bryant 
Mr I G Rennie 
Mr R C McLaren 
Mr M P Luchmun 

Page 4

 
KAIZEN REPORTING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Future developments

Product development
We are continuing our program to improve and extend our ReportShield group of Services.  As always, our aim is to promote quality of reporting but also to reduce the internal cost of reporting for our clients. It is always a fine balance between rigour and cost so where it’s possible, we will put that choice, which is a risk, into the hands of our clients.The depth of our expertise and comprehensiveness of our systems means that we can support clients to make that an informed choice. 
We also anticipate increasing the number of regulations we cover. 
The market for our solutions
We expect to see continued growth in our markets as client seek to get transparency if they’re reporting quality and address regulatory concerns in this area. 
Regulatory change
There are several significant upgrades to existing regulations that have been implemented during 2024: EMIR refit, ASIC and MAS derivative reporting. Further regulatory reporting upgrades are scheduled for 2025: HKMA and Canada with MiFID review likely to go-live in 2027 both in the UK and in Europe which we expect to be very extensive in terms of change.
Regulatory change represents a significant challenge to clients and we are ready to support our clients on that journey.

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHalkin Lerman Davis Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 5

 
KAIZEN REPORTING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

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





Mr D M Crispini
Director

Date: 17 February 2025

Page 6

 
KAIZEN REPORTING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KAIZEN REPORTING LIMITED
 

Opinion


We have audited the financial statements of KAIZEN REPORTING LIMITED (the 'Company') for the year ended 31 January 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity 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 January 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 7

 
KAIZEN REPORTING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KAIZEN REPORTING LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Page 8

 
KAIZEN REPORTING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KAIZEN REPORTING LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and relevant taxation legislation.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their identification and assessment of the risk of irregularities, sample testing on the appropriate journals, reviewing accounting estimates for biases, corroborating balances recognised to supporting documentation on a sample basis and ensuring accounting policies are appropriate under the United Kingdom Generally Accepted Accounting Practice and applicable law.
Owing to the inherent limitations of an audit, there is unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, include deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.


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 Auditors' Report.


Page 9

 
KAIZEN REPORTING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KAIZEN REPORTING 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 Auditors' 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.





Michael Lerman (Senior Statutory Auditor)
  
for and on behalf of
Halkin Lerman Davis Ltd
 
Statutory Auditors
  
Beaumont Chancery
44 Southampton Buildings
London
WC2A 1AP

17 February 2025
Page 10

 
KAIZEN REPORTING LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
15,269,398
13,340,310

Cost of sales
  
(2,716,078)
(2,323,712)

Gross profit
  
12,553,320
11,016,598

Administrative expenses
  
(11,523,350)
(13,748,964)

Operating profit/(loss)
 5 
1,029,970
(2,732,366)

Interest receivable and similar income
 9 
2,692
19,079

Profit/(loss) before tax
  
1,032,662
(2,713,287)

Tax on profit/(loss)
 10 
85,152
1,644,058

Profit/(loss) for the financial year
  
1,117,814
(1,069,229)

Other comprehensive income for the year
  

Total comprehensive income for the year
  
1,117,814
(1,069,229)

The notes on pages 18 to 33 form part of these financial statements.

Page 11

 
KAIZEN REPORTING LIMITED
REGISTERED NUMBER: 08362415

BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2024
2023
2023
Note
£
£
£
£

Fixed assets
  

Tangible assets
 11 
104,253
106,440

Investments
 12 
-
3,360,540

  
104,253
3,466,980

Current assets
  

Debtors
 13 
15,742,514
8,752,217

Cash at bank and in hand
 14 
2,522,438
1,133,559

  
18,264,952
9,885,776

Creditors: amounts falling due within one year
 15 
(8,258,425)
(4,542,736)

Net current assets
  
 
 
10,006,527
 
 
5,343,040

Total assets less current liabilities
  
10,110,780
8,810,020

  

Net assets
  
10,110,780
8,810,020


Capital and reserves
  

Called up share capital 
 17 
100
100

Other reserves
  
4,744,130
4,561,184

Profit and loss account
  
5,366,550
4,248,736

  
10,110,780
8,810,020


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




Mr D M Crispini
Director

Date: 17 February 2025

The notes on pages 18 to 33 form part of these financial statements.

Page 12

 
KAIZEN REPORTING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£

At 1 February 2023
100
4,561,184
4,248,736
8,810,020


Comprehensive income for the year

Profit for the year

-
-
1,117,814
1,117,814


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
1,117,814
1,117,814


Contributions by and distributions to owners

Other movement type 1
-
182,946
-
182,946


Total transactions with owners
-
182,946
-
182,946


At 31 January 2024
100
4,744,130
5,366,550
10,110,780


The notes on pages 18 to 33 form part of these financial statements.

Page 13

 
KAIZEN REPORTING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£

At 1 February 2022
100
319,053
5,317,965
5,637,118


Comprehensive income for the year

Loss for the year

-
-
(1,069,229)
(1,069,229)


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
(1,069,229)
(1,069,229)


Contributions by and distributions to owners

Other movement type 1
-
4,242,131
-
4,242,131


Total transactions with owners
-
4,242,131
-
4,242,131


At 31 January 2023
100
4,561,184
4,248,736
8,810,020


The notes on pages 18 to 33 form part of these financial statements.

Page 14

 
KAIZEN REPORTING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
1,117,814
(1,069,229)

Adjustments for:

Depreciation of tangible assets
56,020
23,545

Loss on disposal of tangible assets
(1,204)
-

Interest paid
-
(19,874)

Interest received
(2,692)
(19,079)

Taxation charge
(85,152)
(1,644,058)

(Increase) in debtors
(83,254)
(24,525)

(Increase) in amounts owed by groups
(7,183,322)
(2,453,216)

Increase in creditors
3,521,839
272,336

Increase in amounts owed to groups
153,356
31,414

Share based payments
182,946
4,242,130

Corporation tax received
402,325
47,608

Net cash generated from operating activities

(1,921,324)
(612,948)


Cash flows from investing activities

Purchase of tangible fixed assets
(53,834)
(113,266)

Sale of tangible fixed assets
1,207
-

Purchase of fixed asset investments
(502,274)
(1,914,254)

Sale of fixed asset investments
3,862,813
-

Interest received
2,692
19,079

Net cash from investing activities

3,310,604
(2,008,441)

Cash flows from financing activities

Interest paid
-
19,874

Net cash used in financing activities
-
19,874

Net increase/(decrease) in cash and cash equivalents
1,389,280
(2,601,515)

Cash and cash equivalents at beginning of year
1,133,159
3,734,674

Cash and cash equivalents at the end of year
2,522,439
1,133,159


Cash and cash equivalents at the end of year comprise:
Page 15

 
KAIZEN REPORTING LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024


2024
2023

£
£



Cash at bank and in hand
2,522,439
1,133,559

Bank overdrafts
-
(400)

2,522,439
1,133,159


The notes on pages 18 to 33 form part of these financial statements.

Page 16

 
KAIZEN REPORTING LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2024




At 1 February 2023
Cash flows
At 31 January 2024
£

£

£

Cash at bank and in hand

1,133,559

1,388,880

2,522,439

Bank overdrafts

(400)

400

-

Debt due within 1 year

(4,920)

(57,172)

(62,092)


1,128,239
1,332,108
2,460,347

The notes on pages 18 to 33 form part of these financial statements.

Page 17

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

Kaizen Reporting Limited, established in 2013, is a private company limited by shares, registered in England and Wales. The company’s registered number and registered office address are available on the company information page.
The principal activity of the company is to provide regulatory and data solutions aimed at simplifying compliance with the evolving regulatory landscape. By leveraging a combination of regulatory expertise and advanced technology, Kaizen Reporting Limited has developed an innovative universal data testing method. This method offers firms comprehensive visibility into the quality of their regulatory reporting data. The company’s automated ReportShield™ assurance services are widely trusted by leading financial institutions to identify and address reporting issues effectively.

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on the going concern basis. The funds to meet the commitments and obligation of the company are provided by the parent company and the parent company has confirmed that it will continue to provide such funding as the Company may need to meet its financial obligations for the foreseeable future.

 
2.3

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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 18

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.3
Foreign currency translation (continued)

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

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:

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.

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.6

Interest income

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

Page 19

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.7

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.

 
2.8

Current and deferred taxation

The tax expense for the year 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.

 
2.9

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 20

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.9
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:

Plant and machinery
-
25%
Office Equipment 4 year SL
Computer equipment
-
33%
Computer Equipment 3 year SL

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.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

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.

 
2.12

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.

 
2.13

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.

 
2.14

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.

Page 21

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Page 22

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.15
Financial instruments (continued)

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.16

Employee share ownership plan

The cost of the Company's shares held by the ESOP is deducted from equity in the Group and Company balance sheets under the heading ESOP share reserve. Any cash received by the ESOP on disposal of the shares it holds is also recognised directly in equity. Other assets and liabilities of the ESOP (including borrowings) are recognised as assets and liabilities of the Company.

Page 23

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, management is required to make judgements, estimates, and assumptions about the carrying amounts 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 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.
Key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
Provisions: Provisions are measured at the management’s best estimate of the expenditure required to settle the obligation at the end of the reporting period. These estimates are based on current legal and constructive obligations and may require the use of assumptions about future events.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sales
15,269,398
13,340,310

15,269,398
13,340,310


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
11,939,244
11,062,827

Rest of Europe
2,837,738
1,626,923

Rest of the world
492,416
650,560

15,269,398
13,340,310


Page 24

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

5.


Operating profit/(loss)

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

2024
2023
£
£

Exchange differences
55,007
(19,874)

Other operating lease rentals
293,353
168,953

Admin - depreciation
56,020
23,545

Admin - profit/loss on sale of assets
(1,204)
-


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
34,250
11,250

Fees payable to the Company's auditors in respect of:

All non-audit services not included above
9,751
8,039


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
8,304,752
7,814,917

Social security costs
1,004,342
964,511

Cost of defined contribution scheme
392,442
331,028

9,701,536
9,110,456


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


        2024
        2023
            No.
            No.







Average number of employees
89
81

Page 25

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
865,188
536,000

Company contributions to defined contribution pension schemes
26,472
-

891,660
536,000


During the year retirement benefits were accruing to £2,496 directors (2023 - £1,709) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £228,814 (2023 - £519,999).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £12,300 (2023 - £NIL).

The total accrued pension provision of the highest paid director at 31 January 2024 amounted to £1,050 (2023 - £NIL).

The amount of the accrued lump sum in respect of the highest paid director at 31 January 2024 amounted to £NIL (2023 - £NIL).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
2,692
19,079

2,692
19,079

Page 26

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
40,894
(685,719)


40,894
(685,719)


Total current tax
40,894
(685,719)

Deferred tax


Deferred tax
(126,046)
(958,339)

Total deferred tax
(126,046)
(958,339)


Taxation on loss on ordinary activities
(85,152)
(1,644,058)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
1,032,662
(2,713,287)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
258,166
(515,524)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
314,546
811,818

Capital allowances for year in excess of depreciation
556
(23,504)

Short-term timing difference leading to an increase (decrease) in taxation
(133,318)
(958,339)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(685,719)

Under provision
-
(23,275)

Group relief
(525,102)
(249,515)

Total tax charge for the year
(85,152)
(1,644,058)

Page 27

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
 
10.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.




11.


Tangible fixed assets





Plant and machinery
Computer equipment
Total

£
£
£



Cost or valuation


At 1 February 2023
39,416
152,484
191,900


Additions
-
53,834
53,834


Disposals
-
(19,664)
(19,664)



At 31 January 2024

39,416
186,654
226,070



Depreciation


At 1 February 2023
38,200
47,261
85,461


Charge for the year on owned assets
1,216
54,804
56,020


Disposals
-
(19,664)
(19,664)



At 31 January 2024

39,416
82,401
121,817



Net book value



At 31 January 2024
-
104,253
104,253



At 31 January 2023
1,217
105,223
106,440

Page 28

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

12.


Fixed asset investments





Investments in subsidiary companies

£





At 1 February 2023
3,360,540


Additions
502,274


Disposals
(3,862,814)



At 31 January 2024
-




On 28 February 2023, a group restructuring was carried out, resulting in the transfer of all investments to Kaizen Regtech Group Limited. The investments have been transferred at cost price to Kaizen Regtech Group Limited. Although the entities are currently in the start-up phase and therefore not yet profitable, the directors are highly confident in their future success and profitability. As such, the directors have chosen not to impair the investments at this stage. While it is early to provide concrete proof of this outlook, the directors' confidence is based on thorough analysis and a strong belief in the potential for growth and success of these ventures as they progress.


13.


Debtors

2024
2023
£
£

Due after more than one year

Amounts owed by group undertakings
6,678,727
-

6,678,727
-

Due within one year

Trade debtors
2,756,884
2,867,589

Amounts owed by group undertakings
4,346,743
3,842,146

Other debtors
27,473
429,798

Prepayments and accrued income
772,718
578,761

Deferred taxation
1,159,969
1,033,923

15,742,514
8,752,217


Page 29

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

13.Debtors (continued)

The total debtors balance includes intercompany loan balances totalling £11,025,469, an increase from £3,842,146 in the prior year. Of this amount, £3,862,814 relates to investments transferred to Kaizen RegTech Group Limited, the holding company, leaving a trading balance of £7,162,655, reflecting a movement in the trading balance of £3,320,509 from the prior year. As at the 13/02/2025, these balances have not been repaid and further loans totalling £2,845,316 has been loaned to fellow group companies. Kaizen Reporting Limited remains committed to supporting these entities during their startup phase. Despite the inherent challenges in projecting profitability due to ongoing research and development, the directors are confident that these entities will achieve positive performance and profitability once this phase is completed. As a result, the directors have made the decision not to impair these loans at this time.


14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,522,438
1,133,559

Less: bank overdrafts
-
(400)

2,522,438
1,133,159



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
-
400

Trade creditors
86,002
106,981

Amounts owed to group undertakings
184,770
31,414

Corporation tax
40,894
-

Other taxation and social security
673,097
891,806

Other creditors
483,602
456,768

Accruals and deferred income
6,790,060
3,055,367

8,258,425
4,542,736


IIn the preparation of the financial statements for the year ended 31 January 2024, the comparative figures for the prior year have been restated to reflect a reclassification of an R&D tax credit receipt. In the previous year, an R&D tax credit receipt amounting to £402,327 was included within the tax creditor.
Upon review, it was determined that the appropriate classification for this receipt is within debtors, as it represents a receivable amount due. Consequently, the prior year figures have been restated to reclassify this amount from tax creditors to debtors. This reclassification has no impact on the net assets or profit for the prior year, but it ensures the accurate presentation of the financial position in accordance with the requirements of FRS 102 UK GAAP.

Page 30

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

16.


Deferred taxation




2024


£






At beginning of year
1,033,923


Charged to profit or loss
126,046



At end of year
1,159,969

The deferred tax asset is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(26,064)
(26,610)

Other item - Share option reserve
1,186,033
1,060,533

1,159,969
1,033,923


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000,000 (2023 - 1,000,000) Ordinary shares of £0.0001 each
100
100


Page 31

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

18.


Share-based payments

The company recognises an equity settled share based payment expense based on the fair value of the share options at the grant date. An expense is recognised on a straight line basis over the vesting period based on the whole amount that can be exercisable.

Weighted average exercise price (pence)
2024
Number
2024
Weighted average exercise price
(pence)
2023
Number
2023

Outstanding at the beginning of the year

0.77

301,370

0.77
 
302,920
 
Forfeited during the year

0.63

(260)

0.20
 
(1,550)
 
Outstanding at the end of the year
0.77

301,110

0.77
 
301,370
 

2024
2023

Option pricing model used


Black-Scholes model

Black-Scholes model
 
Weighted average share price


£10.5 to £20.3

£10.5 to £20.3
 
Exercise price


14p - 89p

14p - 89p
 
Weighted average contractual life


10 years

10 years
 
Expected volatility


21.3%

21.3%
 
Risk-free interest rate


0.13% to 1.48%

0.13% to 1.48%
 

2024
2023
£
£


Expense for the year
182,946
4,254,177

182,946
4,254,177


19.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £392,442. As at the balance sheet date, contributions amounting £57,172 had not been paid over to the fund and are included within creditors.

Page 32

 
KAIZEN REPORTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

20.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
1,121
-

Later than 1 year and not later than 5 years
665,779
-

666,900
-


21.Other financial commitments

During the year, a major project was undertaken to prepare the company for third party investment. This involved creating a data analytics platform and various forms of due diligence (IT, Finance, Tax). The costs recognised in FY24 were £861,049 with committed costs after this period of £830,222.
As part of the share purchase agreement with London Reporting House Limited, Kaizen Reporting Limited has the following contingent liabilities:
- If London Reporting House Limited reaches a monthly recurring revenue of £42,500, Kaizen will make an initial contingent payment of £300,000 to the company.
- If London Reporting House Limited attains a monthly recurring revenue of £120,000, Kaizen will make a second contingent payment of £300,000 to the company.


22.


Related party transactions

No disclosure has been made for transactions with other wholly owned group companies in accordance with FRS 102 Section 1A paragraph 1AC.35.
Cybernetic Controls Limited, an entity in which Director Dario Marcello Crispini holds shares and serves as a director, had total net purchases of £337,153 for the year (compared to £157,611 for the year ending 31/01/2023). As at the year end there was a creditor balance in accruals amounting to £41,061.


23.


Controlling party

On 28 February 2023, there was a change in the group structure. The ultimate controlling party is now Kaizen Regtech Group Limited, which holds 100% of the shares. Prior to this date the controlling party was Mr Dario Marcello Crispini, following the change, Kaizen Regtech Group Limited became the new parent company. Its registered office address is 30 St. Mary Axe, London, England, EC3A 8BF.

 
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