Company registration number 13668202 (England and Wales)
RISKHUB LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
RISKHUB LIMITED
COMPANY INFORMATION
Directors
S Herbison
B Oswald
Company number
13668202
Registered office
10-11 Clerkenwell Green
London
England
EC1R 0DP
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
E1 8FA
RISKHUB LIMITED
CONTENTS
Page
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 27
RISKHUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Principal activities
The principal activity of the company and group continued to be that of provision of fire risk services and consultancy.
Review of the business
Turnover decreased by 12.5% to £14,203,147 (2023: £16,238,853), primarily reflecting the normalisation of revenue from our Door Inspections Service launched in 2023. This service contributed £3.4m to revenue in its first year, with expected lower recurring revenue in subsequent years.
Despite this anticipated reduction, profit before taxation increased by 45.5% to £1,729,051(2023: £3,173,371).
The slight reduction in gross profit margin to 54.6% (2023: 58.7%) reflects the higher resource requirements of the Door Inspections Service, which is also reflected in the overall net profit margin reduction to 22.3% (2023: 30.9%).
Principal risks and uncertainties
The group is exposed to regulatory, operational and market risks. The director has put the necessary measures in place in order to mitigate these risks as much as possible.
Regulatory Risk
Changes in fire safety regulations following the Building Safety Act require continuous professional development and robust quality assurance processes.
Market Competition
The company mitigates competitive pressure through service differentiation, technical excellence, and leveraging its position within the Riskhub Group.
Resource Management
The challenge of recruiting qualified assessors is addressed through competitive remuneration and professional development opportunities.
Technology Disruption
The company continues to invest in technology integration to enhance service delivery efficiency and maintain competitive advantage.
Economic Factors
Potential impacts from macroeconomic pressures are mitigated through client base diversification and focus on statutory compliance services.
Development and performance
The group is well-positioned for 2025, with plans focused on:
Enhanced services using features with the Riskhub group technology platform
Strategic expansion into complementary service areas
Continued operational efficiency improvements
Investment in staff development
The strong balance sheet provides a solid foundation for these initiatives while maintaining capacity to respond to market changes.
RISKHUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators
The key performance indicators are as follows:
PBM 12.2% 18.2%
The significant improvement in profitability demonstrates the effectiveness of operational efficiency measures and strategic focus on higher-margin services.
S Herbison
Director
24 April 2025
RISKHUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
On 22nd April 2024, the company changed its name to Riskhub Limited.
On 25th April 2024, the company changed its address to First Floor,10-11 Clerkenwell, Great London, EC1R 0DP.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £900,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Herbison
B Oswald
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
RISKHUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
S Herbison
Director
24 April 2025
RISKHUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RISKHUB LIMITED
- 5 -
Opinion
We have audited the financial statements of Riskhub Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group income statement, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's 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.
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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The directors' report has been prepared in accordance with applicable legal requirements.
RISKHUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RISKHUB LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with 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, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
The extent to which the audit was considered capable of detecting irregularities including fraud.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and Health and Safety legislation.
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal expenses; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
RISKHUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RISKHUB LIMITED
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
understanding the business model as part of the control and business environment;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence and enquiring with the company of actual and potential non-compliance with laws and regulations.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example, forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatements. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Sarah Wilson FCA (Senior Statutory Auditor)
For and on behalf of Gravita II LLP, Statutory Auditor
Chartered Accountants
Aldgate Tower
2 Leman Street
London
E1 8FA
24 April 2025
RISKHUB LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
14,203,147
16,238,853
Cost of sales
(6,447,903)
(6,702,481)
Gross profit
7,755,244
9,536,372
Administrative expenses
(5,729,085)
(4,218,341)
Operating profit
2,026,159
5,318,031
Interest receivable and similar income
5
3,482
4,039
Interest payable and similar expenses
(136,487)
(92,062)
Amounts written off investments
(164,103)
(2,056,637)
Profit before taxation
1,729,051
3,173,371
Tax on profit
6
(223,576)
Profit for the financial year
17
1,729,051
2,949,795
Profit for the financial year is all attributable to the owners of the parent company.
RISKHUB LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
7
5,571,613
3,552,709
Tangible assets
8
263,381
157,871
5,834,994
3,710,580
Current assets
Debtors
11
2,296,237
2,830,962
Cash at bank and in hand
653,036
251,274
2,949,273
3,082,236
Creditors: amounts falling due within one year
12
(2,587,883)
(2,087,710)
Net current assets
361,390
994,526
Total assets less current liabilities
6,196,384
4,705,106
Creditors: amounts falling due after more than one year
13
(830,559)
(168,332)
Net assets
5,365,825
4,536,774
Capital and reserves
Called up share capital
16
223,248
223,248
Share premium account
17
1,354
1,354
Other reserves
17
(223,277)
(223,277)
Profit and loss reserves
17
5,364,500
4,535,449
Total equity
5,365,825
4,536,774
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
24 April 2025
S Herbison
Director
Company registration number 13668202 (England and Wales)
RISKHUB LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
74,715
Investments
9
223,378
223,378
298,093
223,378
Current assets
Debtors
11
774,730
20,300
Cash at bank and in hand
33,107
807,837
20,300
Creditors: amounts falling due within one year
12
(880,838)
(18,575)
Net current (liabilities)/assets
(73,001)
1,725
Net assets
225,092
225,103
Capital and reserves
Called up share capital
16
223,248
223,248
Share premium account
17
1,354
1,354
Profit and loss reserves
17
490
501
Total equity
225,092
225,103
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £899,900.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
24 April 2025
S Herbison
Director
Company registration number 13668202 (England and Wales)
RISKHUB LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Share premium account
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
223,177
(223,277)
2,485,654
2,485,554
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
2,949,795
2,949,795
Issue of share capital
16
71
1,354
-
-
1,425
Dividends
-
-
-
(900,000)
(900,000)
Balance at 31 December 2023
223,248
1,354
(223,277)
4,535,449
4,536,774
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
1,729,051
1,729,051
Dividends
-
-
-
(900,000)
(900,000)
Balance at 31 December 2024
223,248
1,354
(223,277)
5,364,500
5,365,825
RISKHUB LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
223,177
601
223,778
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
899,900
899,900
Issue of share capital
16
71
1,354
-
1,425
Dividends
-
-
(900,000)
(900,000)
Balance at 31 December 2023
223,248
1,354
501
225,103
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
899,989
899,989
Dividends
-
-
(900,000)
(900,000)
Balance at 31 December 2024
223,248
1,354
490
225,092
RISKHUB LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,218,134
6,469,910
Interest paid
(136,487)
(92,062)
Income taxes paid
(55,240)
Net cash inflow from operating activities
3,081,647
6,322,608
Investing activities
Proceeds from disposal of business
-
300
Purchase of intangible assets
(3,187,540)
(1,984,496)
Purchase of tangible fixed assets
(193,989)
(47,739)
Proceeds from disposal of subsidiaries, net of cash disposed
(164,103)
(2,056,637)
Movement on bank loans
967,847
(791,284)
Interest received
3,482
4,039
Net cash used in investing activities
(2,574,303)
(4,875,817)
Financing activities
Proceeds from issue of shares
-
71
Share issue costs
1,354
Movement on bank loans
794,418
(369,571)
Dividends paid to equity shareholders
(900,000)
(900,000)
Net cash used in financing activities
(105,582)
(1,268,146)
Net increase in cash and cash equivalents
401,762
178,645
Cash and cash equivalents at beginning of year
251,274
72,629
Cash and cash equivalents at end of year
653,036
251,274
RISKHUB LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
679,163
(1,825)
Investing activities
Purchase of tangible fixed assets
(79,020)
Proceeds from disposal of subsidiaries
400
Repayment of loans
(567,036)
Dividends received
900,000
900,000
Net cash generated from investing activities
253,944
900,400
Financing activities
Proceeds from issue of shares
-
71
Share issue costs
1,354
Dividends paid to equity shareholders
(900,000)
(900,000)
Net cash used in financing activities
(900,000)
(898,575)
Net increase in cash and cash equivalents
33,107
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
33,107
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information
Riskhub Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 10-11 Clerkenwell Green, London, England, EC1R 0DP.
The group consists of Riskhub Limited and all of its subsidiaries.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Riskhub Limited together with all entities controlled by the parent company and its subsidiaries.
Merger accounting has been adopted and the results of the subsidiaries are incorporated from the beginning of the financial year in which the combination occurred.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for subscription services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Turnover from contracts for the provision of services was recognised by reference to the fee percentage agreed. In the prior year, turnover was invoiced in the month occurred therefore no deferred or accrued income recognised.
In the current year, turnover is invoiced in arrears at the end of each month based on the number of risk assessments performed in the year. Therefore, accrued income is recognised.
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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:
Development costs
7 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
25% or 15% straight line
Computers
25% straight line
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 recognised in the income statement.
1.6
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the group 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 group.
1.11
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
2
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,500
12,150
Audit of the financial statements of the company's subsidiaries
35,415
35,000
47,915
47,150
For other services
Taxation compliance services
3,350
3,000
All other non-audit services
-
2,775
3,350
5,775
3
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
87
79
5
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,143,753
3,768,311
259,869
Social security costs
441,943
409,986
28,216
-
Pension costs
172,949
152,257
11,912
4,758,645
4,330,554
299,997
4
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
8,333
-
Dividends paid to directors
900,000
900,000
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
5
Interest receivable and similar income
2024
2023
£
£
Other interest receivable and similar income
3,482
4,039
6
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
333,875
Adjustments in respect of prior periods
(110,299)
Total current tax
223,576
In the prior period, there was an increase in the tax rate from April 2024 from 19% to 25%. Therefore, a marginal rate of 23.5% was used. This year, the corporation tax rate is 25%.
The actual charge 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
1,729,051
3,173,371
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
432,263
745,742
Tax effect of expenses that are not deductible in determining taxable profit
(536,692)
138,718
Group relief
635,803
(428,447)
Permanent capital allowances in excess of depreciation
(4,629)
(1,046)
Depreciation on assets not qualifying for tax allowances
(22,019)
2,057
Amortisation on assets not qualifying for tax allowances
292,159
167,619
Research and development tax credit
(796,885)
(401,067)
Taxation charge
-
223,576
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
7
Intangible fixed assets
Group
Development costs
£
Cost
At 1 January 2024
4,992,915
Additions - internally developed
3,187,540
At 31 December 2024
8,180,455
Amortisation and impairment
At 1 January 2024
1,440,206
Amortisation charged for the year
1,168,636
At 31 December 2024
2,608,842
Carrying amount
At 31 December 2024
5,571,613
At 31 December 2023
3,552,709
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
More information on impairment movements in the year is given in note .
8
Tangible fixed assets
Group
Plant and machinery etc
£
Cost
At 1 January 2024
416,969
Additions
193,989
At 31 December 2024
610,958
Depreciation and impairment
At 1 January 2024
259,098
Depreciation charged in the year
88,479
At 31 December 2024
347,577
Carrying amount
At 31 December 2024
263,381
At 31 December 2023
157,871
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Tangible fixed assets
(Continued)
- 22 -
Company
Plant and machinery etc
£
Cost
At 1 January 2024
Additions
79,020
At 31 December 2024
79,020
Depreciation and impairment
At 1 January 2024
Depreciation charged in the year
4,305
At 31 December 2024
4,305
Carrying amount
At 31 December 2024
74,715
9
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Shares in group undertakings and participating interests
-
-
223,378
223,378
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
223,378
Carrying amount
At 31 December 2024
223,378
At 31 December 2023
223,378
10
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Subsidiaries
(Continued)
- 23 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Riskhub Consultancy Limited
10-11 Clerkenwell Green, London, England, EC1R 0DP
Ordinary
100.00
Riskhub Saas Limited
10-11 Clerkenwell Green, London, England, EC1R 0DP
Ordinary
100.00
11
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
151,152
78,410
Other debtors
2,145,085
2,752,552
774,730
20,300
2,296,237
2,830,962
774,730
20,300
12
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
245,763
113,572
Trade creditors
188,919
345,328
46,946
Amounts owed to group undertakings
509,794
18,575
Corporation tax payable
333,277
333,277
Other taxation and social security
863,888
780,241
89,053
Other creditors
956,036
515,292
235,045
2,587,883
2,087,710
880,838
18,575
13
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans and overdrafts
830,559
168,332
830,559
168,332
-
-
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
14
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,076,322
281,904
Payable within one year
245,763
113,572
-
-
Payable after one year
830,559
168,332
15
Share-based payment transactions
The company participates in a share option plan. The options can be exercised at 25% each year for 4 years and remain eligible to exercise for up to 10 years.
The company granted nil (2023: 7,125) share options during the year of which 2,375 (2023: 2,375) were subsequently cancelled during the year.
16
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
223,177
223,177
223,248
223,177
B Ordinary of 1p each
7,125
7,125
-
71
230,302
230,302
223,248
223,248
In the prior year, 7,125 Ordinary B Shares where issued and £0.20 was paid per share. The nominal value of each share is £0.01 amounting to £71. The share premium recognised of £0.19 amounting to £1,354.
17
Reserves
Merger reserve
The merger reserve represents the difference between the value of the shares issued as consideration for the acquisitions made in the prior year and the fair value of the assets and liabilities acquired.
Profit and loss reserves
Profit and loss reserves represent accumulated comprehensive income for the year and prior periods less dividends paid.
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
18
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
2,642,326
118,212
-
-
19
Events after the reporting date
On 24th January 2025, Riskhub Consultancy fully repaid its bank loan of £500,000. This repayment occurred after the balance sheet date and has been reflected in the company’s cash position, but does not result in any changes to the reported liabilities as of 31st December 2024.
20
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Bookkeeping
2024
2023
£
£
Group
Other related parties
-
40,000
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
66
-
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Key management personnel
567,036
1,534,883
Other information
On the 31 December 2024 a loan amounting to £164,103 was written off between Riskhub Consultancy Limited and a company which is also 96.9% owned by the Director, Sarah Herbison.
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
21
Directors' transactions
Dividends totalling £900,000 (2023 - £900,000) were paid in the year in respect of shares held by the company's directors.
At the balance sheet date, a loan of £567,036 was outstanding from a director of the company. The loan was unsecured, interest-free, and repayable on demand.
This balance was fully repaid post year end on 25 March 2025.
Description
Opening balance
Amounts repaid
Closing balance
£
£
£
Director's Loan
1,534,883
(967,847)
567,036
1,534,883
(967,847)
567,036
22
Cash generated from group operations
2024
2023
£
£
Profit after taxation
1,729,051
2,949,795
Adjustments for:
Taxation charged
223,576
Finance costs
136,487
92,062
Investment income
(3,482)
(4,039)
(Gain)/loss on disposal of tangible fixed assets
-
959
Amortisation and impairment of intangible assets
1,168,636
713,274
Depreciation and impairment of tangible fixed assets
88,479
85,303
Other gains and losses
164,103
2,056,637
Movements in working capital:
(Increase)/decrease in debtors
(433,122)
634,458
Increase/(decrease) in creditors
367,982
(282,115)
Cash generated from operations
3,218,134
6,469,910
RISKHUB LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
23
Cash generated from/(absorbed by) operations - company
2024
2023
£
£
Profit after taxation
899,989
899,900
Adjustments for:
Investment income
(900,000)
(900,000)
Depreciation and impairment of tangible fixed assets
4,305
-
Movements in working capital:
Increase in debtors
(187,394)
(20,300)
Increase in creditors
862,263
18,575
Cash generated from/(absorbed by) operations
679,163
(1,825)
24
Analysis of changes in net debt - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
251,274
401,762
653,036
Borrowings excluding overdrafts
(281,904)
(794,418)
(1,076,322)
(30,630)
(392,656)
(423,286)
25
Analysis of changes in net funds - company
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
-
33,107
33,107
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