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Registered number: 09240956










REDSIFT LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
REDSIFT LIMITED
 

COMPANY INFORMATION


Directors
S W Brooks 
M G Graninger 
M C Hedger 
R J P Pinto 
R Powar 
M Samaan 
M A Van der Bel 




Company secretary
Oakwood Corporate Secretary Limited



Registered number
09240956



Registered office
3rd floor
1 Ashley Road

Altrincham

Cheshire

WA14 2DT




Independent auditors
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

RG1 8LS





 
REDSIFT LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 4
Directors' Report
5 - 6
Independent Auditors' Report
7 - 9
Consolidated Statement of Comprehensive Income
10
Consolidated Balance Sheet
11
Company Balance Sheet
12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15 - 16
Consolidated Analysis of Net Debt
16
Notes to the Financial Statements
17 - 38


 
REDSIFT LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The Directors present their Group Strategic Report for Redsift Limited (the “Company”) and its subsidiaries, (collectively the “Group”) for the year ended 31st December 2024.

Principal activities and review of the year

Red Sift provides next-generation cloud security and risk management applications. Our Digital Resilience Platform (the “Red Sift Pulse Platform”) integrates large-scale cybersecurity intelligence, powerful AI, and interconnected applications to deliver a comprehensive security solution. It addresses vulnerabilities across the attack surface, including email, domains, brand, and the network perimeter. By providing deep visibility into digital risks, we enable organisations to proactively mitigate threats and strengthen their security posture.
In 2024, Red Sift deepened its investment in artificial intelligence to enhance product innovation and security capabilities. A key milestone was our recognition in Gartner’s Emerging Tech Impact Radar for Security, affirming our leadership in AI-driven predictive security. By leveraging AI, we proactively anticipate and neutralise cyber threats, reducing the burden on security teams and accelerating automated threat remediation.
AI continues to reshape cybersecurity, with rapid advancements in predictive security and automated threat detection. As highlighted in Red Sift’s 2025 cybersecurity predictions, AI-driven solutions are now essential in combating increasingly sophisticated cyber threats. Generative AI is playing a pivotal role in identifying emerging attack vectors, while automation significantly reduces the complexity and manual effort required to manage security configurations and respond to incidents in real time.
Our AI-driven approach strengthens core products such as Red Sift Radar, which allows for automation around the deployment and maintenance of proactive security measures, and OnDMARC, where our integration of a large language model (LLM) automates email security configurations for greater efficiency and accuracy. Additionally, AI-powered enhancements in Brand Trust and Attack Surface Management (ASM) enable enterprises to proactively defend against brand impersonation and uncover hidden vulnerabilities with unprecedented speed and precision.
By embedding AI across our platform, we continuously refine the accuracy and effectiveness of our security tools, helping businesses stay ahead of evolving threats. This strategic investment ensures that our customers benefit from industry-leading AI-driven security solutions that not only strengthen their defences but also enhance operational efficiency.

Operational Efficiency and Financial Performance

Red Sift continued to strengthen its market position while delivering consistent revenue growth and improving operational efficiency. Recognised revenue increased 22% year over year, with steady expansion across international segments. Our disciplined financial management and strategic investment prioritisation led to a 65% reduction in operating cash burn. These efficiencies ensure we maintain growth while extending our financial runway and enhancing profitability.
To maximise productivity, we streamlined internal processes, optimised our go-to-market strategies for improved sales efficiency, and strengthened customer success initiatives to drive retention and expansion. These improvements have bolstered financial performance and reinforced our ability to scale efficiently in a competitive market.
The directors have assessed the Group’s financial position and cash flow forecasts, and are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they consider the going concern basis of preparation to be appropriate.

Page 1

 
REDSIFT LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Sustainability and Carbon Reporting

Red Sift remains committed to sustainability and continues to monitor and measure its carbon footprint. While our primary focus has been on operational efficiency, we recognise the importance of environmental responsibility. Throughout 2024, we maintained our commitment to measuring emissions, identifying reduction opportunities, and offsetting our impact.
We continue to refine our sustainability strategy to align with best practices and industry standards, ensuring that our operations remain environmentally responsible while supporting long-term business objectives.

Product Innovation and Development
 
Red Sift continues to lead in cybersecurity innovation, expanding our product portfolio to address evolving security threats. In 2024, we made significant advancements across our core offerings:
Pulse Platform: 
Enhanced intelligence ingestion and AI-driven insights for greater cybersecurity resilience.
Redsift Radar: 
Refined threat detection capabilities, allowing customers to stay ahead of emerging threats. The integration of Red Sift Radar with OnDMARC has made it the first automated DMARC solution leveraging LLM technology, significantly improving email security by identifying and remediating technical misconfigurations more efficiently.
Brand Trust: 
Increased adoption by enterprises to ensure brand authenticity and prevent digital impersonation. AI-powered asset discovery and facial recognition enhancements have reduced response times and strengthened brand security.
ASM (Attack Surface Management): 
Strengthened monitoring and remediation features, helping organisations manage and secure their growing attack surfaces.
Certificates: 
Enhanced certificate lifecycle management with a next-generation UI update, incorporating AI-powered filtering, improved search functionality, and advanced content classification for more efficient certificate inventory and expiration monitoring.
Industry Recognition: 
Red Sift OnDMARC maintained its leadership position in G2’s DMARC category for the fourth consecutive time, reflecting high customer satisfaction and market strength.
These innovations have expanded our customer base and reinforced Red Sift’s reputation as a leader in cybersecurity solutions. We remain committed to investing in product development to drive customer success and market leadership.



Page 2

 
REDSIFT LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties
 
Red Sift actively manages risks as part of its operational framework, with overall responsibility residing with the Board. The principal risks and uncertainties facing Red Sift include:
Competition and Customer Demand: 
The cybersecurity market is highly competitive and rapidly evolving. We continue investing in innovation and customer success to maintain our position as a market leader. Our larger competitors are expanding their security offerings, increasing pressure on pricing and customer retention.
Business Growth
Macroeconomic factors, including geopolitical uncertainties, financial market fluctuations, and shifts in enterprise technology priorities, may impact our growth trajectory. Red Sift mitigates these risks through strategic investment prioritisation and efficiency improvements. However, global economic downturns or IT budget reductions could impact our sales cycles and expansion plans.
Cybersecurity Threats: 
The increasing sophistication of cyber threats presents ongoing challenges. We prioritise security in product development and business operations, upholding the highest data protection and compliance standards. Given the rise of AI-powered attacks, Red Sift continues to enhance its AI-driven security solutions to counter emerging risks.
Foreign Currency Risk: 
Given our international operations, currency fluctuations pose a potential risk. We mitigate this through a diversified revenue base and proactive financial management.
Regulatory and Compliance Risks: 
As cybersecurity regulations continue to evolve globally, ensuring compliance with frameworks such as GDPR, NIS2, and CCPA is increasingly complex. Failure to comply with such regulations could result in financial penalties and reputational damage.
 
AI and Data Privacy Concerns: 
With AI playing an increasingly central role in our cybersecurity offerings, ensuring ethical AI use and data privacy compliance is critical. Concerns over AI bias, regulatory scrutiny, and data protection laws could pose challenges to AI-driven security solutions.
Third-Party and Supply Chain Risk: 
As with many SaaS companies, our reliance on third-party vendors, cloud service providers, and infrastructure partners introduces potential operational and security risks. Any service disruptions or security breaches within our supply chain could impact service delivery and customer trust.
Customer Retention and Pricing Pressure: 
As large enterprises compete in adjacent cybersecurity segments, maintaining customer loyalty and demonstrating differentiated value is essential. Increasing price competition in the industry could also put pressure on margins and growth.
Integration and Scalability Risks
As we continue to scale, integrating new technologies, expanding infrastructure, and ensuring seamless performance across our platform become increasingly complex. Poor scalability planning or integration challenges could hinder our ability to deliver consistent service quality.

Red Sift has demonstrated strong financial performance and operational efficiency in 2024, achieving notable revenue growth while significantly reducing cash burn. Our commitment to innovation, customer success, and strategic investment positions us well for continued expansion in the cybersecurity market. Looking ahead, we remain focused on delivering high-impact solutions, optimising efficiency, and driving long-term value for our stakeholders.

Page 3

 
REDSIFT LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


This report was approved by the board on 24 July 2025 and signed on its behalf.



R J Pinto
Director

Page 4

 
REDSIFT LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors

The directors who served during the year were:

S W Brooks 
M G Graninger 
M C Hedger 
R J P Pinto 
R Powar 
M Samaan 
M A Van der Bel 

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group 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 for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The loss for the year, after taxation, amounted to £6,137,908 (2023 - loss £9,766,389).

Future developments

See strategic report.

Page 5

 
REDSIFT LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsJames Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





R J P Pinto
Director

Date: 24 July 2025

Page 6

 
REDSIFT LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REDSIFT LIMITED
 

Opinion


We have audited the financial statements of Redsift Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the 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.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 7

 
REDSIFT LIMITED
 

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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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 set out on page 5, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
REDSIFT LIMITED
 

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


Auditors' responsibilities for the audit of the financial statements
 

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


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Alan Poole BA (Hons) FCA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
RG1 8LS

4 August 2025
Page 9

 
REDSIFT LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
11,719,481
9,593,180

Cost of sales
  
(1,819,628)
(1,822,552)

Gross profit
  
9,899,853
7,770,628

Administrative expenses
  
(11,827,133)
(13,605,319)

Development costs
  
(4,489,029)
(4,462,801)

Operating loss
 5 
(6,416,309)
(10,297,492)

Interest receivable and similar income
 9 
206,933
309,430

Interest payable and similar expenses
 10 
(594)
(64,000)

Loss before taxation
  
(6,209,970)
(10,052,062)

Tax on loss
 11 
72,062
285,673

Loss for the financial year
  
(6,137,908)
(9,766,389)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(6,137,908)
(9,766,389)

  
(6,137,908)
(9,766,389)

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 17 to 38 form part of these financial statements.

Page 10

 
REDSIFT LIMITED
REGISTERED NUMBER: 09240956

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
4,277,740
5,179,696

Tangible assets
 13 
85,111
88,140

  
4,362,851
5,267,836

Current assets
  

Debtors
 15 
4,250,690
3,742,108

Cash at bank and in hand
 16 
7,984,359
11,138,903

  
12,235,049
14,881,011

Creditors: amounts falling due within one year
 17 
(8,593,960)
(7,171,926)

Net current assets
  
 
 
3,641,089
 
 
7,709,085

Total assets less current liabilities
  
8,003,940
12,976,921

Creditors: amounts falling due after more than one year
 18 
(1,635,680)
(573,025)

  

Net assets
  
6,368,260
12,403,896


Capital and reserves
  

Called up share capital 
  
58
58

Share premium account
 22 
44,889,012
44,869,819

Foreign exchange reserve
 22 
18,715
(17,003)

Other reserves
 22 
198,887
151,526

Profit and loss account
 22 
(38,738,412)
(32,600,504)

  
6,368,260
12,403,896


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




R J P Pinto
Director
Date: 24 July 2025

The notes on pages 17 to 38 form part of these financial statements.

Page 11

 
REDSIFT LIMITED
REGISTERED NUMBER: 09240956

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
1,272,857
1,527,429

Tangible assets
 13 
64,826
60,896

Investments
 14 
6,522,041
6,522,095

  
7,859,724
8,110,420

Current assets
  

Debtors
 15 
15,965,606
11,968,866

Cash at bank and in hand
 16 
6,992,552
10,896,252

  
22,958,158
22,865,118

Creditors: amounts falling due within one year
 17 
(7,570,669)
(5,934,542)

Net current assets
  
 
 
15,387,489
 
 
16,930,576

Total assets less current liabilities
  
23,247,213
25,040,996

  

Creditors: amounts falling due after more than one year
 18 
(1,485,847)
(403,770)

  

Net assets
  
21,761,366
24,637,226


Capital and reserves
  

Called up share capital 
  
58
58

Share premium account
 22 
44,889,012
44,869,819

Other reserves
 22 
198,887
151,526

Profit and loss account
 22 
(23,326,591)
(20,384,177)

  
21,761,366
24,637,226


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




R J P Pinto
Director
Date: 24 July 2025

The notes on pages 17 to 38 form part of these financial statements.

Page 12

 
REDSIFT LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Share premium account
Foreign exchange reserve
Share based payment reserve
Profit and loss account
Total equity

£
£
£
£
£
£


At 1 January 2023
57
44,857,104
(402,938)
89,588
(22,835,362)
21,708,449



Loss for the year
-
-
-
-
(9,766,389)
(9,766,389)

Currency translation differences
-
-
385,935
-
-
385,935

Share option charge
-
-
-
61,938
1,247
63,185

Shares issued during the year
1
12,715
-
-
-
12,716



At 1 January 2024
58
44,869,819
(17,003)
151,526
(32,600,504)
12,403,896



Loss for the year
-
-
-
-
(6,137,908)
(6,137,908)

Currency translation differences
-
-
35,718
-
-
35,718

Share option charge
-
-
-
47,361
-
47,361

Shares issued during the year
-
19,193
-
-
-
19,193


At 31 December 2024
58
44,889,012
18,715
198,887
(38,738,412)
6,368,260


The notes on pages 17 to 38 form part of these financial statements.

Page 13

 
REDSIFT LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Share premium account
Share based payment reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2023
57
44,857,104
89,588
(16,085,230)
28,861,519



Loss for the year
-
-
-
(4,300,194)
(4,300,194)

Share option charge
-
-
61,938
1,247
63,185

Shares issued during the year
1
12,715
-
-
12,716



At 1 January 2024
58
44,869,819
151,526
(20,384,177)
24,637,226



Loss for the year
-
-
-
(2,942,414)
(2,942,414)

Share option charge
-
-
47,361
-
47,361

Shares issued during the year
-
19,193
-
-
19,193


At 31 December 2024
58
44,889,012
198,887
(23,326,591)
21,761,366


The notes on pages 17 to 38 form part of these financial statements.

Page 14

 
REDSIFT LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Loss for the financial year
(6,137,908)
(9,766,389)

Adjustments for:

Amortisation of intangible assets
901,956
901,955

Depreciation of tangible assets
53,850
62,488

Loss on disposal of tangible assets
6,149
-

Interest paid
594
64,000

Interest received
(206,933)
(309,430)

Taxation charge
(72,062)
(285,024)

(Increase) in debtors
(393,826)
(1,212,871)

Increase in creditors
2,441,995
444,386

Increase in provisions
47,361
61,938

Corporation tax received
-
353,313

Foreign exchange
35,718
385,935

Net cash generated from operating activities

(3,323,106)
(9,299,699)


Cash flows from investing activities

Purchase of tangible fixed assets
(56,970)
(36,382)

Interest received
206,933
309,430

Net cash from investing activities

149,963
273,048

Cash flows from financing activities

Issue of ordinary shares
19,193
6,384

Interest paid
(594)
(64,000)

Net cash used in financing activities
18,599
(57,616)
Page 15

 
REDSIFT LIMITED
 

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


2024
2023

£
£



Net (decrease) in cash and cash equivalents
(3,154,544)
(9,084,267)

Cash and cash equivalents at beginning of year
11,138,903
20,223,170

Cash and cash equivalents at the end of year
7,984,359
11,138,903


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
7,984,359
11,138,903

7,984,359
11,138,903



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

11,138,903

(3,154,544)

7,984,359

Debt due within 1 year

(1,513)

1,513

-


11,137,390
(3,153,031)
7,984,359

The notes on pages 17 to 38 form part of these financial statements.

Page 16

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Redsift Limited is a private limited company, limited by shares, registered in England and Wales. The company's registered office is 3rd Floor 1 Ashley Road, Altrincham, Cheshire, United Kingdom, WA14 2DT

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future.
The Group incurred a consolidated loss of £6.14 million during the year ended 31 December 2024 (2023: £9.77 million loss), and experienced a net cash outflow from operating activities of £3.3 million (2023: £9.3 million). However, as at 31 December 2024, the Group had cash and cash equivalents of £7.98 million (2023: £11.14 million) and net assets of £6.43 million (2023: £12.4 million).
The directors have considered the Group's forecasts and projections, taking into account expected revenues, operating costs, and planned capital expenditures. They have also assessed the Group’s cash position and the measures implemented to reduce cash burn, including improved sales efficiency and strategic cost management. These measures have resulted in a 65% reduction in operating cash burn in 2024, demonstrating a path to continued operational efficiency and financial sustainability.
The directors are confident that the Group has adequate resources to meet its obligations as they fall due for at least twelve months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 17

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

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

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

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

Rendering of services

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

 
2.6

Operating leases: the Group as lessee

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

Page 18

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

Research and development

Research and development costs are expensed as incurred.

 
2.8

Interest income

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

 
2.9

Finance costs

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

 
2.10

Pensions

Defined contribution pension plan

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

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

 
2.11

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 19

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

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

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

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

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


 
2.13

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 20

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

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

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Acquired technology
-
5
years
Goodwill
-
10
years
Trademarks
-
5
years
Acquired customer lists
-
3
years

 
2.15

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Leasehold improvements
-
33%
straight line
Office equipment
-
33%
straight line
Computer equipment
-
33%
straight line

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

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

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 21

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.17

Debtors

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

 
2.18

Cash and cash equivalents

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

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

 
2.19

Creditors

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

 
2.20

Provisions for liabilities

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

 
2.21

Financial instruments

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans 
Page 22

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)

due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The company's accounting policies are set out above. Management are required to exercise significant judgment and make use of estimates in the application of these policies. Areas where management require significant accounting judgments are:
Bad debt provision
Provisions are estimated by the company (in respect of specific debts) based on the age of the debt and knowledge of issues with recovery.
Value of intangible fixed assets
The intangible assets capitalised are determined by management’s judgement that the ability to develop the asset is technically feasible, will be completed, and that the asset will generate economic benefit that outweighs is cost.
Amortisation of intangible fixed assets
Intangible fixed assets are amortised across their useful lives, or where the useful life cannot be determined or is assessed to be indefinite, across 10 years. The actual lives of the assets are assessed annually and may vary depending on a number of factors.
 

Page 23

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

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


2024
2023
£
£

Cybersecurity software
11,719,481
9,593,180

11,719,481
9,593,180


2024
2023
£
£

United Kingdom
3,497,479
3,875,646

Rest of Europe
2,562,865
2,081,720

United States of America
4,094,717
2,839,580

Rest of the world
1,564,420
796,234

11,719,481
9,593,180



5.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Exchange differences
(127,367)
(471,077)

Other operating lease rentals
242,011
250,491

Depreciation
53,850
62,488

Amortisation
901,956
901,955


6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
25,500
23,550

Fees payable to the Company's auditors for corporation tax advice
4,850
4,600

Fees payable to the Company's auditors for other non-audit services
4,750
4,500

Page 24

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
7,190,384
8,252,524
3,907,148
4,484,749

Social security costs
704,351
714,816
652,335
665,524

Cost of defined contribution scheme
106,544
120,369
106,544
116,511

8,001,279
9,087,709
4,666,027
5,266,784


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Employees
97
105
48
62


8.


Directors' remuneration

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the group. In the opinion of the directors there were not key management personnel other than the directors in the year. 


2024
2023
£
£

Directors' emoluments
418,972
330,600

Group contributions to defined contribution pension schemes
5,293
7,368

424,265
337,968


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

The highest paid director received remuneration of £163,013 (2023 - £195,600).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,890 (2023 - £5,868).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
206,933
309,430

Page 25

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
-
64,000

Interest and penalties paid
594
-

594
64,000


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
(85,537)
(256,462)


(85,537)
(256,462)

Foreign tax


Foreign tax on income for the year
11,035
1,438

11,035
1,438

Total current tax
(74,502)
(255,024)

Deferred tax


Origination and reversal of timing differences
2,440
(30,649)

Total deferred tax
2,440
(30,649)


Tax on loss
(72,062)
(285,673)
Page 26

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(6,209,970)
(10,052,062)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
(1,552,493)
(2,364,245)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
75,313
19,528

Capital allowances for year in excess of depreciation
63,643
153,481

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
36,975
24,995

Other differences leading to an increase (decrease) in the tax charge
437,247
544,096

Deferred tax not recognised
867,253
1,336,472

Total tax charge for the year
(72,062)
(285,673)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 27

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Intangible assets

Group





Technology investment
Trademarks
Customer list
Goodwill
Total

£
£
£
£
£



Cost


At 1 January 2024
1,284,000
498,000
408,100
4,095,217
6,285,317



At 31 December 2024

1,284,000
498,000
408,100
4,095,217
6,285,317



Amortisation


At 1 January 2024
314,787
122,090
166,750
501,994
1,105,621


Charge for the year
256,801
99,600
136,033
409,522
901,956



At 31 December 2024

571,588
221,690
302,783
911,516
2,007,577



Net book value



At 31 December 2024
712,412
276,310
105,317
3,183,701
4,277,740



At 31 December 2023
969,213
375,910
241,350
3,593,223
5,179,696

Goodwill represents the excess of the cost of acquisition of the trade and assets over the fair value of the net assets acquired. Goodwill is determined to have an indefinite life and is therefore amortised across 10 years.
The customer list intangible asset represents the fair value of existing customers within Hardenize at the date of its acquisition by the Company. The customer list has been determined to have a useful economic life of 3 years by the directors and will be amortised across an equivalent period.
The technology investment asset represents the fair value of investments made in development of software within Hardenize prior to its acquisition by the Company. Technology investments have been determined to have a useful economic life of 5 years by the directors and will be amortised across an equivalent period.
Intangible assets are tested for impairment at least annually or whenever events or circumstances change and make it more likely than not that an impairment may have occurred.



Page 28

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
           12.Intangible assets (continued)

Company




Technology investment
Trademarks
Total

£
£
£



Cost


At 1 January 2024
1,284,000
498,000
1,782,000



At 31 December 2024

1,284,000
498,000
1,782,000



Amortisation


At 1 January 2024
183,428
71,143
254,571


Charge for the year
154,972
99,600
254,572



At 31 December 2024

338,400
170,743
509,143



Net book value



At 31 December 2024
945,600
327,257
1,272,857



At 31 December 2023
1,100,572
426,857
1,527,429

The technology investment and trademarks have been determined to have a useful economic life of 5 years by the directors and will be amortised across an equivalent period.Intangible assets are tested for impairment at least annually or whenever events or circumstances change and make it more likely than not that an impairment may have occurred.

Page 29

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Tangible fixed assets

Group






Leasehold improvements
Office equipment
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2024
30,467
40,914
274,057
345,438


Additions
13,122
14,127
29,721
56,970


Disposals
(8,400)
(5,289)
(8,446)
(22,135)



At 31 December 2024

35,189
49,752
295,332
380,273



Depreciation


At 1 January 2024
26,851
38,710
191,737
257,298


Charge for the year
3,194
2,067
48,589
53,850


Disposals
(6,650)
(4,261)
(5,075)
(15,986)



At 31 December 2024

23,395
36,516
235,251
295,162



Net book value



At 31 December 2024
11,794
13,236
60,081
85,111



At 31 December 2023
3,616
2,204
82,320
88,140

Page 30

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           13.Tangible fixed assets (continued)


Company






Leasehold improvements
Office equipment
Computer equipment
Total

£
£
£
£

Cost or valuation


At 1 January 2024
30,467
40,914
192,428
263,809


Additions
13,122
14,127
20,845
48,094


Disposals
(8,400)
(5,289)
(8,446)
(22,135)



At 31 December 2024

35,189
49,752
204,827
289,768



Depreciation


At 1 January 2024
26,851
38,710
137,352
202,913


Charge for the year
3,194
2,067
33,766
39,027


Disposals
(6,650)
(4,261)
(6,087)
(16,998)



At 31 December 2024

23,395
36,516
165,031
224,942



Net book value



At 31 December 2024
11,794
13,236
39,796
64,826



At 31 December 2023
3,616
2,204
55,076
60,896






Page 31

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
6,522,095


Amounts written off
(54)



At 31 December 2024
6,522,041





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Redsift Spain SLU
Spain
Ordinary
100%
Redsift Inc
USA
Ordinary
100%
Redsift Australia Pty Ltd
Australia
Ordinary
100%
Hardenize Ltd
United Kingdom
Ordinary
100%
Redsift Germany GmbH
Germany
Ordinary
100%










The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable.
The subsidiary company Hardenize Ltd has taken the exemption in section 479A of the Companies Act 2006 (the Act) from the requirement in the Act for their individual accounts to be audited. The guarantee given by the Company under section 479A is disclosed in note 25. 

Page 32

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Other debtors
63,815
-
59,887
-

Due within one year

Trade debtors
3,097,288
2,606,367
2,614,417
1,788,230

Amounts owed by group undertakings
-
-
12,238,788
9,159,404

Other debtors
89,733
178,516
79,747
140,915

Prepayments and accrued income
580,032
641,833
562,545
577,553

Tax recoverable
410,222
302,764
410,222
302,764

Deferred taxation
9,600
12,628
-
-

4,250,690
3,742,108
15,965,606
11,968,866



16.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
7,984,359
11,138,903
6,992,552
10,896,252

7,984,359
11,138,903
6,992,552
10,896,252



17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
434,297
274,936
433,045
263,995

Credit cards
-
1,513
-
1,513

Amounts owed to group undertakings
-
-
674,162
453,345

Corporation tax
834
36,066
-
-

Other taxation and social security
348,945
428,909
255,080
298,099

Other creditors
51,074
53,749
42,994
47,777

Accruals and deferred income
7,758,810
6,376,753
6,165,388
4,869,813

8,593,960
7,171,926
7,570,669
5,934,542


Page 33

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Deferred income
1,635,680
573,025
1,485,847
403,770


 


19.


Share capital

2024
2023
£
£



143,247,851 (2023 - 142,950,246) Ordinary shares of £0.0000001 each
15
15

4,000,000 (2023 - 4,000,000) G-1 shares of £0.0000001 each
-
-

500,000 (2023 - 500,000) G-2 shares of £0.0000001 each
-
-

12,070,438 (2023 - 12,070,438) G-3 shares of £0.0000001 each
1
1

51,134,917 (2023 - 51,134,917) Seed 1 shares of £0.0000001 each
5
5

64,145,061 (2023 - 64,145,061) Seed 2 shares of £0.0000001 each
6
6

108,491,577 (2023 - 108,491,577) Series A shares of £0.0000001 each
11
11

132,549,590 (2023 - 132,549,590) Series B-2 AD shares of £0.0000001 each
13
13

35,908,065 (2023 - 35,908,065) Series B-2 NAD shares of £0.0000001 each
4
4

28,193,171 (2023 - 28,193,171) Series B-1 shares of £0.0000001 each
3
3

58
58

Duing the year, 297,605 Ordinary shares with a nominal value of £0.0000001 each were issued for a total consideration of £48,685.
Ordinary G shares carry no dividend rights.  
The Ordinary, Seed 1, Seed 2 and Series A, Series B-1, Series B-2 AD and Series B-2 NAD shares rank equally in all respects, except for capital distribution.

Page 34

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets that are debt instruments measured at amortised cost
3,250,836
2,784,883
14,992,839
11,088,549

Cash and cash equivalents
7,984,359
11,138,903
6,992,552
10,896,252

11,235,195
13,923,786
21,985,391
21,984,801


Financial liabilities

Financial liabilities measured at amortised cost
485,371
328,685
1,153,554
765,117


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts
owed by group undertakings and other debtors.
Financial liabilities measured at amortised cost comprise trade creditors, bank loans, other loans,
amounts owed to group undertakings and other creditors.


21.


Deferred taxation


Group



2024


£






At beginning of year
12,628


Charged to profit or loss
(3,028)



At end of year
9,600

Company


2024






At end of year
-
Group
Group
Company
2024
2023
2023
£
£
£

Accelerated capital allowances
9,600
12,628
-

9,600
12,628
-

Page 35

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

22.


Reserves

Share premium account

This reserve represents the amount above the nominal value for shares issued, less transaction costs.

Foreign exchange reserve

Foreign exchange reserves consist of the difference on exchange rates between profit and loss and balance sheet entries on consolidation between companies with base operating currencies other than Pounds.

Other reserves

This reserve represents the cumulative cost of issues of share options.

Profit and loss account

This reserve represents the cumulative profit available for distribution to shareholders.

Page 36

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Share-based payments

The Company operates an equity settled stock award scheme, whereby employees of the company may be granted either restricted stock units or stock options in the parent company, Redsift Limited. Under the scheme such share options vest over a scheduled vesting period.
The share based payment charge for the year was £47,361 (2023: £61,938).

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

Outstanding at the beginning of the year

0.126

55,771,469

0.048
 
26,619,619
 
Granted during the year

0.089

10,894,619

0.190
 
31,176,850
 
Forfeited during the year

0.088

(5,194,167)

0.078
 
(1,908,750)
 
Exercised during the year

0.088

(150,000)

0.078
 
(116,250)
 
Outstanding at the end of the year
0.123

61,321,921

0.126
 
55,771,469
 

2024
2023

Option pricing model used


Black-Scholes

Black-Scholes
 
Weighted average share price (pence)


0.01

0.002
 
Exercise price (pence)


0.09

0.0663-0.09
 
Weighted average contractual life (years)


5.0

1.0-5.0
 
Expected volatility


30.00%

30.00%
 
Risk-free interest rate


4.13%

3.23%
 



24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £153,948 (2023: 167,773). Contributions totalling £27,618 (2023: £35,300) were payable to the fund at the balance sheet date and are included in creditors.


25.


Financial commitments, guarantees and contingent liabilities.

In order for the subsidiary company Hardenize Ltd to take the audit exemption in section 479A of the Companies Act 2006, the Company has guaranteed all outstanding liabilities of that subsidiary company at 31 December 2024 until those liabilities are satisfied in full.

Page 37

 
REDSIFT LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

26.


Commitments under operating leases

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


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
135,000
121,667
135,000
121,667

Later than 1 year and not later than 5 years
540,000
-
540,000
-

675,000
121,667
675,000
121,667


27.


Related party transactions

The Company is exempt from disclosing related party transactions with other 100% owned members of the Group headed by Redsift Limited by virtue of FRS 102 section 33.1A.

Page 38