Cisilion Limited
Annual Report and Financial Statements
For the year ended 31 May 2024
Company Registration No. 03902228 (England and Wales)
Cisilion Limited
Company Information
Director
R D Paul
Company number
03902228
Registered office
Cisilion House
Guildford Road
Leatherhead
Surrey
KT22 9UT
Auditor
Moore Kingston Smith LLP
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Business address
Cisilion House
Guildford Rd
Leatherhead
Surrey
KT22 9UT
Cisilion Limited
Strategic Report
For the year ended 31 May 2024
Page 1

The director presents the strategic report for the year ended 31 May 2024.

Fair review of the business

I am pleased to be publishing highlights from Cisilion accounts for FY24.

Following on from a successful FY23 Cisilion continues to demonstrate impressive growth across all key areas of the business. We continued to focus and develop our core technology areas of modern work, infrastructure, data centre & cloud and security, delivering a full range of services and solutions to meet the needs of our clients.

I’m pleased to report some extremely strong financial numbers. Booked revenue for the group was up 18% to £86.77m whilst EBITDA more than doubled from £835k to £1.720m representing the companies most successful year to date. This was extremely positive as it shows top line growth whilst demonstrating a significant increase in the operational efficiency and management of the business. This can be attributed to a concerted focus on increasing the profitability of the business over the long run and is the result of regular and ongoing reviews across the business by the leadership and management teams.

Furthermore the increase in booked revenue resulted in a 21% increase in back orders from £39m to £47m further strengthening the health of the business over the short and medium term. In addition to expanding our existing client relationships, Cisilion continued to target new strategic clients of which 59 were added during the year.

Cisilion continued to develop its key relationships with Cisco and Microsoft. Our Cisco practice delivered exceptional growth of 51% whilst our Microsoft practice grew 36% to £44m. These results are testament to the continued investment Cisilion makes in these partnerships. In addition to holding the highest level of partner status with Cisco and Microsoft we were delighted to add 7 Cisco powered services and be accepted onto 3 new elite Microsoft programmes throughout the year (CSI, Teams and Co-Pilot). This strengthens our managed services offerings and further adds to our technical accreditations.

Cisilion continued to invest across the business, undertaking a full brand refresh, expanding and renovating our London HQ,  whilst investing and building an industry leading client experience centre that allows us to showcase the latest technology offerings from our key vendors. These investments will help provide the platform for future growth, helping Cisilion attract and retain talent whilst providing a industry leading demo facility to show our existing and new clients the latest technology offerings from our key vendors.

Finally we continued our focus on recruiting the best talent across the industry. Cisilion are a services led business and therefore our employees are at the heart of what makes Cisilion great. To that end we constantly review our training and development programme, implementing new programmes yearly to ensure all departments across the business are upskilled and supported.

Thank you to all our partners and stakeholders for your continued support and we look forward to continued growth and success in 2025.

 

 

Cisilion Limited
Strategic Report (Continued)
For the year ended 31 May 2024
Page 2
Principal risks and uncertainties

Cisilion regularly reviews the risks of the business to ensure appropriate procedures and policies are in place to protect the stakeholders of the business and ensuring long term stability and success. This occurs in a multitude of ways through weekly board meetings, monthly detailed reviews focused on the financial health of the business and external third party audits to name a few.

Liquidity and Financial Risk

Cisilion regularly reviews the risk of not being able to meet our financial obligations. The company manages and monitors our liquidity and available cash reserves on a weekly basis to ensure we are able to meet our liabilities as they fall both in the short and long term. The company takes a prudent and conservative approach to managing risk, monitoring cashflow and our upcoming liabilities on a daily basis. It’s important to highlight the company has no bad debt, bank loans or outside investment and therefore isn’t susceptible to changes in interest rates. We believe having no loans or leverage plays a key role in protecting the business over the long term and ensuring we’re in a strong financial position to weather any macro-economic conditions that may arise.

Macroeconomic and Market Risk

Cisilion is constantly monitoring macroeconomic conditions and market risks in general. High inflation, a highly competitive market and a reliance in attracting and retaining top talent are all risks we monitor closely. Working closely with market leading vendors, constantly evolving and developing our offering and our focus on maintaining and acquiring new clients helps spread any concentration risk. We also constantly review our training and development in addition to our employee compensation and benefits to ensure we’re in line or ahead of our direct competitors. Constantly reviewing our processes and using technology to gain efficiencies and improvements also helps offset impacts of inflation.

Key performance indicators

Leading on from the Key performance indicators highlighted in FY24.

 

S/O      Y/Y      Margin B/O

FY21     £54M     +29%     £15M     £25M

FY22     £65M     +20%     £16M     £38M

FY23     £74M     +13%     £17M     £39M

FY24    £87M    +18%    £17m    £47M    

 

An important factor in our success is the relationship with our key partners Cisco and Microsoft by exceeding expectations and demonstrating our ability and expertise to add high end integrated services and support. With both market leaders at the forefront of exciting new technology advances we are well positioned to benefit and support our customers with future deployments.

 

We continue to benefit from being one of the few Partners in the UK providing high end services from both World Leading Organisations reinforcing Cisilion status as a UK leader of integrated collaboration solutions.

On behalf of the board

R D Paul
Director
26 February 2025
Cisilion Limited
Director's Report
For the year ended 31 May 2024
Page 3

The director presents his annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the company continued to be that of the provision of IT products and services to corporate and public sector customers.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £250,000. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

R D Paul
Auditor

In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
R D Paul
Director
26 February 2025
Cisilion Limited
Director's Responsibilities Statement
For the year ended 31 May 2024
Page 4

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

 

 

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

Cisilion Limited
Independent Auditor's Report
To the Member of Cisilion Limited
Page 5
Opinion

We have audited the financial statements of Cisilion Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

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 director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Cisilion Limited
Independent Auditor's Report (Continued)
To the Member of Cisilion Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

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

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 Director's 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:

 

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Cisilion Limited
Independent Auditor's Report (Continued)
To the Member of Cisilion Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Cisilion Limited
Independent Auditor's Report (Continued)
To the Member of Cisilion Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Ian Matthews
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
26 February 2025
Chartered Accountants
Statutory Auditor
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Cisilion Limited
Statement of Comprehensive Income
For the year ended 31 May 2024
Page 9
2024
2023
as restated
Notes
£
£
Turnover
3
72,019,335
69,459,700
Cost of sales
(51,693,013)
(51,188,197)
Gross profit
20,326,322
18,271,503
Administrative expenses
(19,094,616)
(17,972,027)
Operating profit
4
1,231,706
299,476
Interest receivable and similar income
8
136,569
133,256
Interest payable and similar expenses
9
25,166
(25,166)
Fair value gains and losses
10
110,589
104,781
Profit before taxation
1,504,030
512,347
Tax on profit
11
(372,553)
175,218
Profit for the financial year
1,131,477
687,565

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Cisilion Limited
Balance Sheet
As at 31 May 2024
Page 10
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
13
567,187
526,490
Tangible assets
14
547,501
368,724
1,114,688
895,214
Current assets
Stock
16
680,530
515,395
Debtors falling due after more than one year
17
4,688,865
4,552,296
Debtors falling due within one year
17
28,287,318
24,835,478
Cash at bank and in hand
6,034,658
2,696,865
39,691,371
32,600,034
Creditors: amounts falling due within one year
18
(34,741,368)
(28,438,984)
Net current assets
4,950,003
4,161,050
Total assets less current liabilities
6,064,691
5,056,264
Provisions for liabilities
Deferred tax liability
19
(270,068)
(143,118)
(270,068)
(143,118)
Net assets
5,794,623
4,913,146
Capital and reserves
Called up share capital
21
850
850
Capital redemption reserve
250,000
250,000
Profit and loss reserves
5,543,773
4,662,296
Total equity
5,794,623
4,913,146
The financial statements were approved and signed by the director and authorised for issue on 26 February 2025
R D Paul
Director
Company Registration No. 03902228
Cisilion Limited
Statement of Changes in Equity
For the year ended 31 May 2024
Page 11
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 May 2023:
Balance at 1 June 2022
850
250,000
4,224,731
4,475,581
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
687,565
687,565
Dividends
12
-
-
(250,000)
(250,000)
Balance at 31 May 2023
850
250,000
4,662,296
4,913,146
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
1,131,477
1,131,477
Dividends
12
-
-
(250,000)
(250,000)
Balance at 31 May 2024
850
250,000
5,543,773
5,794,623
Cisilion Limited
Notes to the Financial Statements
For the year ended 31 May 2024
Page 12
1
Accounting policies
Company information

Cisilion Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cisilion House, Guildford Road, Leatherhead, Surrey, KT22 9UT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Cisilion Group Limited. These consolidated financial statements are available from its registered office, Cisilion House, Guildford Road, Leatherhead, Surrey, KT22 9UT.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the value of goods and services provided in the year, exclusive of value added tax.

 

Revenue from the sale of hardware or third party software is recognised at the point of delivery to the customer. This is usually at the point of despatch as this represents the point that risk and reward of ownership transfer.

 

Revenue from managed services contracts is recognised over the life of the contract. This is usually recognised evenly over the life of the contract unless there are scope or price changes during the term.

 

Revenue from professional services engagements are recognised by reference to the stage of completion. This either could be upon delivered milestone or based on effort completed.

Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 13
1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
1,5,10 years straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
20% Reducing Balance
In house systems
20% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

1.7
Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition, and is measured using the first in, first out (FIFO) cost formula.

 

Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses.

1.8
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

 

The company has an arrangement whereby it can draw down funds in advance of customer invoices (debtors) being paid. The risks and rewards remain with the company and are not transferred to the financing bank. Given that the risks and rewards remain with the company, customer invoice debts are classified under trade debtors, with cash held in the financing bank accounts being classified within cash and cash equivalents.

Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 14
1.9
Financial instruments

The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that classified as 'other' or financial instruments measured at fair value.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 15
1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply the reversal of the timing difference.

1.12
Retirement benefits

The company makes contributions on behalf of certain employees into a group personal pension plan, the assets of which are held separately from those of the company in an independently administered fund. Contributions to this scheme are charged to profit or loss as they become payable.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 16
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Trade debtors

Trade debtors are reviewed regularly for items older than 90 days to determine whether any provision against irrecoverable balances are required.

Stock provision

Stock items older than 5 years are provided against, with isolated exceptions should it be considered that a provision would be inappropriate.

Revenue recognition

Revenue on professional services is recognised on a percentage completion basis, which requires judgement on the total hours required to complete the contracts.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Goods
25,795,442
23,804,507
Services
46,223,893
45,655,193
72,019,335
69,459,700
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
67,346,558
64,687,819
Europe
2,401,969
3,327,120
Rest of the World
2,270,808
1,444,761
72,019,335
69,459,700
Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
3
Turnover and other revenue
(Continued)
Page 17
2024
2023
£
£
Other significant revenue
Interest income
136,569
133,256
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(18,627)
182,104
Depreciation of owned tangible fixed assets
106,473
132,370
Loss on disposal of tangible fixed assets
180,051
113,865
Amortisation of intangible assets
92,395
44,110
Operating lease charges
1,013,254
850,616
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
30,440
30,200
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Sales staff
59
52
Technical staff
65
62
Adminstrative staff
43
41
Total
167
155
Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
6
Employees
(Continued)
Page 18

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
13,167,108
12,549,694
Social security costs
1,659,552
1,600,469
Pension costs
175,114
177,008
15,001,774
14,327,171
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
339,840
310,182
Company pension contributions to defined contribution schemes
1,321
1,321
341,161
311,503
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
339,840
310,182
Company pension contributions to defined contribution schemes
1,321
1,321
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
136,569
133,256
9
Interest payable and similar expenses
2024
2023
£
£
Gain/(loss) on hedged item in a fair value hedge
(25,166)
25,166
Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 19
10
Fair value gains and losses
2024
2023
£
£
Other gains and losses
110,589
104,781
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
245,603
(72,470)
Deferred tax
Origination and reversal of timing differences
126,950
(102,748)
Total tax charge/(credit)
372,553
(175,218)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,504,030
512,347
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
376,008
128,087
Tax effect of expenses that are not deductible in determining taxable profit
92,576
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(189,656)
Group relief
(34,142)
-
0
Permanent capital allowances in excess of depreciation
10,300
(3,185)
Effect of overseas tax rates
(14,324)
-
0
Deferred tax liability
(270,068)
(143,118)
Other tax adjustment
212,203
32,654
Taxation charge/(credit) for the year
372,553
(175,218)
12
Dividends
2024
2023
£
£
Interim paid
250,000
250,000
Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 20
13
Intangible fixed assets
Software
£
Cost
At 1 June 2023
762,303
Additions
133,092
At 31 May 2024
895,395
Amortisation and impairment
At 1 June 2023
235,813
Amortisation charged for the year
92,395
At 31 May 2024
328,208
Carrying amount
At 31 May 2024
567,187
At 31 May 2023
526,490
14
Tangible fixed assets
Fixtures and fittings
In house systems
Total
£
£
£
Cost
At 1 June 2023
253,379
652,488
905,867
Additions
355,383
109,918
465,301
Disposals
(183,263)
(422,393)
(605,656)
At 31 May 2024
425,499
340,013
765,512
Depreciation and impairment
At 1 June 2023
158,003
379,140
537,143
Depreciation charged in the year
56,776
49,697
106,473
Eliminated in respect of disposals
(124,600)
(301,005)
(425,605)
At 31 May 2024
90,179
127,832
218,011
Carrying amount
At 31 May 2024
335,320
212,181
547,501
At 31 May 2023
95,376
273,348
368,724
Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 21
15
Financial instruments
2024
2023
£
£
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
-
25,166
16
Stock
2024
2023
£
£
Finished goods and goods for resale
680,530
515,395
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
8,119,548
11,193,615
Corporation tax recoverable
-
0
348,349
Amounts owed by group undertakings
191,331
283,501
Other debtors
3,404,094
2,591,458
Prepayments and accrued income
16,572,345
10,418,555
28,287,318
24,835,478
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
4,688,865
4,552,296
Total debtors
32,976,183
29,387,774
Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 22
18
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
8,418,183
10,612,968
Amounts owed to group undertakings
796,645
-
0
Corporation tax
237,310
-
0
Other taxation and social security
2,071,416
1,374,966
Derivative financial instruments
-
0
25,166
Other creditors
371,463
59,921
Accruals and deferred income
22,846,351
16,365,963
34,741,368
28,438,984
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Fixed asset timing differences
270,068
198,315
Movement in the year
-
(55,197)
270,068
143,118
2024
Movements in the year:
£
Liability at 1 June 2023
143,118
Charge to profit or loss
126,950
Liability at 31 May 2024
270,068

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 23
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,114
177,008

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
850
850
850
850
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
670,610
524,343
Between two and five years
677,243
169,653
1,347,853
693,996
23
Related party transactions
Transactions with related parties

The company has taken advantage of the exemptions conferred by FRS 102 not to disclose transactions with group undertakings where 100% of the share capital is held within the group and the consolidated financial statements are publicly available.

24
Directors' transactions

At the year end the company was owed £2,167,229 by the director (2023: £1,764,452).

Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 24
25
Ultimate controlling party

The parent company is Cisilion (Group) Limited, a company registered in England & Wales. The parent company's registered office is Cisilion House, Guildford Road, Leatherhead, Surrey, KT22 9UT. The smallest and largest group of undertakings in which the company's financial statements are consolidated are headed by Cisilion (Group) Limited. A copy of the consolidated financial statements of Cisilion (Group) Limited can be obtained from Companies House.

26
Prior period adjustment
It was identified that there were items included as tangible fixed assets which should be recognised as intangible fixed assets, there has been an adjustment of £59,970 to the Profit and Loss to reverse the element of over depreciation charged when these assets were included as tangible fixed assets. This has been corrected and impacts the Profit and Loss Account, Balance Sheet, note 13 and note 14.
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 May 2023
£
£
£
Fixed assets
Other intangibles
341,524
184,966
526,490
Tangible assets
493,720
(124,996)
368,724
Net assets
4,853,176
59,970
4,913,146
Capital and reserves
Profit and loss reserves
4,602,326
59,970
4,662,296
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 May 2023
£
£
£
Administrative expenses
(18,031,997)
59,970
(17,972,027)
Profit for the financial period
627,595
59,970
687,565
Cisilion Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
26
Prior period adjustment
(Continued)
Page 25
Reconciliation of changes in equity
1 June
31 May
2022
2023
£
£
Adjustments to prior year
Impact of prior year adjustment
-
59,970
Equity as previously reported
4,475,581
4,853,176
Equity as adjusted
4,475,581
4,913,146
Analysis of the effect upon equity
Profit and loss reserves
-
59,970
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Impact of prior year adjustment
59,970
Total adjustments
59,970
Profit as previously reported
627,595
Profit as adjusted
687,565
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