Company registration number 05209221 (England and Wales)
7THSENSE DESIGN LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2024
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
7THSENSE DESIGN LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Profit and loss account
11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Notes to the financial statements
15 - 27
7THSENSE DESIGN LIMITED
COMPANY INFORMATION
- 1 -
Directors
M J Barton
R R Brown
Company number
05209221
Registered office
2 The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
Auditor
TC Group
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
7THSENSE DESIGN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

The directors present the strategic report for the year ended 30 September 2024.

Principal activity

 

7thSense Design Limited is a part of the 7thSense Holdings Limited group of companies, being technology innovators who specialise in pixel generation, processing and management by providing a toolkit of advanced products that enable storytellers worldwide to fulfil their vision.

 

The principal activity of 7thSense Design Limited, during the year, continued to be that of the design and supply of media serving, pixel management and show control software and hardware products. The Group has a global customer base covering both public and private sectors.

 

Performance during the year

 

2024 marks the 20th Anniversary of 7thSense Design Limited. In May 2024, 7thSense won a Display Application of the Year Award at the Society for Information Display’s (SID) 2024 Display Industry Awards, for our management control, and pixel processing system at Sphere, Las Vegas.

 

In February 2024, 7thSense won the Best of Show award at ISE in Sound & Video Contractor Category and in October 2023 were awarded Best in Market Award by Pro AV, for new products Juggler 2 and R-Series 10. During FY24, the group secured a high value contract, due to be delivered in FY25.

 

Although the company was not directly impacted by COVID-19 in 2020, we are now seeing the effects of this, due to where the company typically sits in the supply chain for projects taking place in the themed entertainment industry. This has led to a reduction in turnover for FY24.

 

EBITDA increased from £176K to £1.46M.

 

Cash reserves have decreased from £3.5M in 2023 to £1.3M in 2024.

 

Due to dividends, the balance sheet is still strong although the company's net assets decreased to £1.6M in 2024 from £12.2M in 2023.

7THSENSE DESIGN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

Principal risks and uncertainties

 

Management continually monitors the key risks facing the company together with assessing the controls used for managing these risks. The board of directors reviews and documents the principal risks facing the business each quarter.

 

The principal risks and uncertainties facing the company are as follows:

 

Credit Risk

The company mitigates credit risk (principally the loss in value of financial assets due to parties failing to meet financial obligations) by rigorously credit checking all customers and suppliers. The business has not suffered from any material bad debts during or post year end.

 

Currency Risk

The company trades in multiple foreign currencies, and therefore has debtors, bank balances and creditors in US Dollars, Euros and Sterling. Gains and losses in currency exchanges are reported in the profit and loss account. The company limits exposure by monitoring its forex needs and objectives through cash management and planning, and matching payments and receipts in foreign currencies where possible.

 

Liquidity risk

The company keeps sufficient convertible assets to meet funding requirements.

 

Economic downturn;

Although the company monitors the turnover and demand of customer sales, which incorporate the company's technologies and services, sales trends can change with the market requirements. The company maintains a close relationship with customers in a manner that provides information for management to enable action to respond to declining sales. The company is very agile and has a diverse customer base and product portfolio. The large proportion of contractual income (many are business critical) mitigates this risk.

 

Competitors and changing technology;

As markets develop a greater need for the company's supplies, the company's expert personnel research and develop new solutions and service combinations to meet the demand. Risk occurs when competitors provide solutions to existing customers. Management of this risk is by providing quality products and services while maintaining strong relationships with customers and being at the forefront of new technology.

Financial Key Performance Indicators (KPI's)

 

Management use a range of performance measures to monitor and manage the business, as set out below.

 

KPI

FY24

FY23

FY22

Growth in turnover (%)

(36.71)%

(24.44)%

178.02%

Gross Margin (%)

72.69%

46.83%

54.35%

EBITDA (%)

15.69%

1.20%

20.10%

Accounts receivable days

7.4

7.3

15.9

 

Future Developments

 

Despite FY24 seeing a fall in sales, we are confident the company will flourish over the next few years, having several high profile and high value projects in discussion, with work planning to commence in FY25.

7THSENSE DESIGN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

On behalf of the board

M J Barton
Director
23 June 2025
7THSENSE DESIGN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company continued to be that of the design and supply of Media Serving and Pixel Management software and hardware products.

Directors

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

M J Barton
R R Brown
Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £11,658,898. The directors do not recommend payment of a final dividend.

Auditor

In accordance with the company's articles, a resolution proposing that TC Group 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
M J Barton
Director
23 June 2025
7THSENSE DESIGN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

7THSENSE DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 7THSENSE DESIGN LIMITED
- 7 -
Opinion

We have audited the financial statements of 7thSense Design Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, 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 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:

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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual 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.

7THSENSE DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 7THSENSE DESIGN LIMITED
- 8 -

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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to 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; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

7THSENSE DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 7THSENSE DESIGN LIMITED
- 9 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an 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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance 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.

 

7THSENSE DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 7THSENSE DESIGN LIMITED
- 10 -

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 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.

Chris Checkley FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
23 June 2025
Office: Steyning
7THSENSE DESIGN LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
9,307,079
14,704,819
Cost of sales
(2,541,667)
(7,819,132)
Gross profit
6,765,412
6,885,687
Administrative expenses
(5,440,926)
(6,916,609)
Other operating income
5,022
-
0
Operating profit/(loss)
4
1,329,508
(30,922)
Interest receivable and similar income
7
44,307
73,488
Interest payable and similar expenses
8
(33)
(29,953)
Profit before taxation
1,373,782
12,613
Tax on profit
9
(351,499)
1,780,964
Profit for the financial year
1,022,283
1,793,577

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 15 to 27 form part of these financial statements
7THSENSE DESIGN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
£
£
Profit for the year
1,022,283
1,793,577
Other comprehensive income
-
-
Total comprehensive income for the year
1,022,283
1,793,577
7THSENSE DESIGN LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
274,995
351,609
Investments
12
100
100
275,095
351,709
Current assets
Stocks
14
1,331,535
1,860,463
Debtors
15
1,399,033
14,148,269
Cash at bank and in hand
1,306,754
3,498,701
4,037,322
19,507,433
Creditors: amounts falling due within one year
16
(2,636,137)
(7,532,141)
Net current assets
1,401,185
11,975,292
Total assets less current liabilities
1,676,280
12,327,001
Provisions for liabilities
Deferred tax liability
17
51,226
65,332
(51,226)
(65,332)
Net assets
1,625,054
12,261,669
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss reserves
1,624,054
12,260,669
Total equity
1,625,054
12,261,669

The notes on pages 15 to 27 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 23 June 2025 and are signed on its behalf by:
M J Barton
Director
Company Registration No. 05209221
7THSENSE DESIGN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
1,000
10,467,092
10,468,092
Year ended 30 September 2023:
Profit and total comprehensive income
-
1,793,577
1,793,577
Balance at 30 September 2023
1,000
12,260,669
12,261,669
Year ended 30 September 2024:
Profit and total comprehensive income
-
1,022,283
1,022,283
Dividends
10
-
(11,658,898)
(11,658,898)
Balance at 30 September 2024
1,000
1,624,054
1,625,054
7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
1
Accounting policies
Company information

7thSense Design Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 The Courtyard, Shoreham Road, Upper Beeding, Steyning, West Sussex, BN44 3TN.

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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

7thSense Design Limited is a wholly owned subsidiary of 7THSense Holdings Limited and the results of 7thSense Design Limited are included in the consolidated financial statements of 7THSense Holdings Limited which are available from 2 The Courtyard, Shoreham Road, Upper Beeding, Steyning, West Sussex, BN44 3TN.

7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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:

Leasehold improvements
10% straight line
Fixtures and fittings
20% 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 credited or charged to profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash at bank and in hand

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

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's 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.

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.

7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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.

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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.

7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

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

 

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

 

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revenue recognition

Revenue and associated costs for longer term projects are recognised at key milestones. For ongoing projects at the year end, management exercises judgement to estimate the stage of completion for each to assess the milestones reached and therefore the level of revenue and associated costs to recognise in profit and loss. The assessments made carry an inherent element of estimation uncertainty however the company has relevant controls in place to mitigate this.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
972,303
998,823
EU
189,264
164,253
ROW
8,145,512
13,541,743
9,307,079
14,704,819
2024
2023
£
£
Other revenue
Interest income
44,307
73,488
7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(28,885)
306,629
Research and development costs
369,146
954,935
Fees payable to the company's auditor for the audit of the company's financial statements
25,445
20,000
Depreciation of owned tangible fixed assets
132,580
133,857
Operating lease charges
217,717
261,158
5
Employees

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

2024
2023
Number
Number
44
51

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,657,720
2,958,989
Social security costs
330,350
348,701
Pension costs
211,005
212,470
3,199,075
3,520,160
6
Directors' remuneration
2024
2023
£
£
Company pension contributions to defined contribution schemes
120,000
87,789

Benefits in kind totalling £12,063 (2023 - £9,807) were paid in the year in respect of the company's directors.

7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
44,133
73,488
Other interest income
174
-
0
Total income
44,307
73,488
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
33
29,953
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
365,605
29,533
Adjustments in respect of prior periods
-
0
(1,778,828)
Total current tax
365,605
(1,749,295)
Deferred tax
Origination and reversal of timing differences
(14,106)
(31,669)
Total tax charge/(credit)
351,499
(1,780,964)

On 1 April 2023 the rate of corporation tax increased from 19% to 25%.

7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 23 -

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
1,373,782
12,613
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
343,446
2,775
Tax effect of expenses that are not deductible in determining taxable profit
21,432
(4,911)
Adjustments in respect of prior years
-
0
(482,597)
Group relief
(13,379)
-
0
Effect on tax of prior year adjustments
-
0
(1,296,231)
Taxation charge/(credit) for the year
351,499
(1,780,964)
10
Dividends
2024
2023
£
£
Interim paid
11,658,898
-
0
7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 October 2023
250,412
212,399
420,227
883,038
Additions
1,101
3,853
51,012
55,966
At 30 September 2024
251,513
216,252
471,239
939,004
Depreciation and impairment
At 1 October 2023
113,389
148,911
269,129
531,429
Depreciation charged in the year
21,122
27,307
84,151
132,580
At 30 September 2024
134,511
176,218
353,280
664,009
Carrying amount
At 30 September 2024
117,002
40,034
117,959
274,995
At 30 September 2023
137,023
63,488
151,098
351,609
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
100
100
13
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
7THSense Design LLC
USA
Ordinary
100.00
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,331,535
1,860,463
7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
188,142
295,447
Corporation tax recoverable
366,452
1,537,417
Amounts owed by group undertakings
-
0
11,816,716
Amounts owed by undertakings in which the company has a participating interest
390,600
260,400
Other debtors
178,060
188,802
Prepayments and accrued income
275,779
49,487
1,399,033
14,148,269
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
502,493
247,590
Amounts owed to undertakings in which the company has a participating interest
1,339,482
503,571
Taxation and social security
72,708
89,434
Deferred income
18
307,898
6,279,206
Other creditors
156,159
171,426
Accruals and deferred income
257,397
240,914
2,636,137
7,532,141
17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
51,226
65,332
7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
17
Deferred taxation
(Continued)
- 26 -
2024
Movements in the year:
£
Liability at 1 October 2023
65,332
Credit to profit or loss
(14,106)
Liability at 30 September 2024
51,226

The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

18
Deferred income
2024
2023
£
£
Other deferred income
307,898
6,279,206
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
211,005
212,470

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.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
500
500
500
500
B Ordinary of £1 each
499
499
499
499
C Ordinary of £1 each
1
1
1
1
1,000
1,000
1,000
1,000
7THSENSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
21
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
160,020
188,308
Between two and five years
285,723
450,950
445,743
639,258
22
Related party transactions

The company has applied exemptions available in s.33.1A of FRS102 not to disclose transactions with wholly owned group undertakings.

 

During the year, management charges of £663,720 (2023: £651,427) were paid to a connected company owned directly by the ultimate owners of the group parent company.

 

A loan of £390,600 (2023: £260,400) to a connected company owned directly by the ultimate owners of the group parent company was outstanding at the year-end.

 

23
Ultimate controlling party

The ultimate parent company is 7THSense Holdings Limited by virtue of the fact it owns 100% of the company's voting share capital.

 

The registered office address of 7THSense Holdings Limited and the address from which copies of the group consolidated accounts can be obtained is: 2 The Courtyard, Shoreham Road, Upper Beeding, Steyning, West Sussex, BN44 3TN.

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