Company Registration No. 01789968 (England and Wales)
Link Up Mitaka Limited
Annual report and financial statements
for the year ended 31 December 2024
Link Up Mitaka Limited
Company information
Directors
J Gould
M O Rice
(Appointed 1 January 2024)
Company number
01789968
Registered office
Brainworks
Unit 4 - Royds Close
Leeds
England
LS12 6LL
Independent auditor
Saffery LLP
Trinity
16 John Dalton Street
Manchester
M2 6HY
Bankers
HSBC Bank Plc
Bond Court
Leeds
LS1 2JZ
Solicitors
DLA Piper UK LLP
Princes Exchange
Princes Square
Leeds
LS1 4BY
Link Up Mitaka Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 27
Link Up Mitaka Limited
Strategic report
For the year ended 31 December 2024
1

The directors present the strategic report for the year ended 31 December 2024.

Business review and future developments

Turnover in the period was £9,295,000 (202 3: £8,483,000) resulting in an operating profit of £1,054,000 (202 3: £374,000 loss).

EBITDA is defined as Earnings before Interest, Tax, Depreciation, and Amortisation.

|  | 2024 | 2023
|  | £'000 | £'000
Operating profit | 1,054 | (374)
Depreciation |  | 76 | 178
Amortisation |  | 393 | 355
EBITDA |  | 1,523 | 159

The company has had another successful year of growth and the directors remain confident that the company is well positioned to continue as one of the leading full-service providers of cost-effective language solutions to meet the global requirements of its clients.

The company and group’s WordSynk technology is focused upon enhancing the client experience, accessibility and security while driving efficiency. The group’s continued investment in the development of WordSynk is expected to deliver strong ongoing returns and means that the company and group is well placed for future expansion.

Key developments

During 2024 the group continued to invest in WordSynk, the group's all in one language technology platform and during the year it continued its rollout of this new technology platform to its largest clients. The group continues to host various back office and support operations in Pune, India, where operations were expanded during the year, helping to deliver the group's service offering in a cost efficient manner.

Principal risks and uncertainties

The c ompany monitors risks formally through the g roup risk committee, whose membership is drawn from all areas of the business. The key business risks affecting the group, beyond the challenging macro economic climate, are retaining our talented pool of linguists and employees and the group’s exposure to foreign exchange risk and credit risk. The company’s approach to mitigation of all these risks is explained under financial risk management.

Financial key performance indicators

The directors consider that the company’s Key Performance Indicators (“KPI”) are revenue growth and EBITDA. Revenue has grown by 9.6% in 2024 to £9.3m compared with £8.5m in 2023, whilst EBITDA has grown by 650% to £1.5m from £0.2m in 2023. The directors believe that the group remains in a strong position to continue to improve these KPIs.

Financial risk management

Financial risk management for the c ompany is managed at a g roup level. The group's financial risk management objectives are to ensure sufficient working capital and to protect the group against bad debts and adverse movements in interest, inflation, and foreign exchange rates.

Management regularly monitor the company and group exposure to movements in inflation and forecast revenue and cost targets accordingly.

Link Up Mitaka Limited
Strategic report (continued)
For the year ended 31 December 2024
2

The group both buys and sells in foreign currencies, giving exposure to movements in exchange rates where there are inflows and outflows in individual currencies. For significant net exposures, particularly in respect of the US Dollar and the Euro, the directors monitor the potential use of hedging strategies where necessary to minimise exchange gains and losses.

The group transacts with its clients on credit terms and so has exposure to the risk of defaulted debts. However, a large proportion of the client base comprises of blue-chip private sector and public sector clients, which significantly reduces this exposure. The group also follows proactive and robust credit management policies, designed to minimise overdue accounts and the corresponding risk of bad debts.

On behalf of the board

J Gould
Director
26 June 2025
Link Up Mitaka Limited
Directors' report
For the year ended 31 December 2024
3

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

Principal activities

The principal activity of the company continued to be that of the provision of language translation services.

Results and dividends

The results for the year are set out on page 8.

Directors

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

J Gould
A G Lightowler
(Resigned 1 March 2024)
M O Rice
(Appointed 1 January 2024)
Qualifying third party indemnity provisions

A qualifying indemnity provision as defined in Section 232(2) of the Companies Act 2006 is in force for the benefit of each of the Directors in respect of liabilities incurred as a result of their office, to the extent permitted by law.

Going concern

The d irectors manage the business on a UK group wide basis, "the group", and assess g oing c oncern at both a c ompany and g roup level. The going concern basis of preparation is considered applicable in the financial statements despite the group reporting a loss result for 2024. It is forecast to be profitable during the year ending December 2025 and beyond. The group is also in a strong net asset position and holds a significant positive cash balance.

The directors have considered the forecasted cash flows up to December 2026 and are comfortable with the current performance and the forecast which shows that there will continue to be a positive generation of cash to cover all liabilities which fall due over this period.

The debt within the group is currently made up of a £24.5m term loan which is not due for payment until August 2026. There is also a £5m RCF agreement of which £2m was drawn down in January 2024. These are part of the same agreement and require the same covenant compliance including cashflow cover, adjusted leverage, and guarantor coverage. The continued and forecasted improvements in both EBITDA and cash generation enables the directors to be comfortable that the group will continue to be in compliance with all covenants and that the group will be able to either roll over or replace its debt facilities before their expiry date in August 2026.

Based on the above, the directors have a reasonable expectation that the company will continue to trade as a going concern for the foreseeable future with the necessary resources to do this.

Future developments

For a greater understanding of the current performance and potential future developments impacting on the Company then please refer to the consolidated financial statements of its parent company, thebigword Group Holdings Limited. These are available as disclosed in the Controlling party note in these financial statements.

Auditor

The auditor, Saffery LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Link Up Mitaka Limited
Directors' report (continued)
For the year ended 31 December 2024
4
Statement of directors' responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
J Gould
Director
26 June 2025
Link Up Mitaka Limited
Independent auditor's report
To the members of Link Up Mitaka Limited
5
Opinion

We have audited the financial statements of Link Up Mitaka Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, 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:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Link Up Mitaka Limited
Independent auditor's report (continued)
To the members of Link Up Mitaka Limited
6

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of 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' r esponsibilities s tatement, 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Link Up Mitaka Limited
Independent auditor's report (continued)
To the members of Link Up Mitaka Limited
7

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

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

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.

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.

Diane Petit-Laurent FCA
Senior Statutory Auditor
For and on behalf of Saffery LLP
27 June 2025
Statutory Auditors
Trinity
16 John Dalton Street
Manchester
M2 6HY
Link Up Mitaka Limited
Statement of comprehensive income
For the year ended 31 December 2024
8
2024
2023
Notes
£'000
£'000
Turnover
3
9,295
8,483
Cost of sales
(5,052)
(4,587)
Gross profit
4,243
3,896
Administrative expenses
(3,189)
(4,229)
Share-based payment transactions
17
-
0
(41)
Profit/(loss) before taxation
1,054
(374)
Tax on profit/(loss)
8
(76)
152
Profit/(loss) for the financial year
978
(222)
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
-
0
(4)
Total comprehensive income for the year
978
(226)

The income statement has been prepared on the basis that all operations are continuing operations.

Link Up Mitaka Limited
Statement of financial position
As at 31 December 2024
9
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
9
160
67
Tangible assets
10
133
137
Investments
11
160
160
453
364
Current assets
Debtors
13
51,871
58,766
Cash at bank and in hand
464
614
52,335
59,380
Creditors: amounts falling due within one year
14
(49,237)
(57,171)
Net current assets
3,098
2,209
Net assets
3,551
2,573
Capital and reserves
Called up share capital
18
1
1
Share premium account
19
1,291
1,291
Capital contribution reserve
19
373
373
Profit and loss reserves
19
1,886
908
Total equity
3,551
2,573
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
J Gould
Director
Company Registration No. 01789968
Link Up Mitaka Limited
Statement of changes in equity
For the year ended 31 December 2024
10
Share capital
Share premium account
Capital contribution reserve
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
£'000
Balance at 1 January 2023
1
1,291
332
1,135
2,759
Year ended 31 December 2023:
Loss
-
-
-
(222)
(222)
Other comprehensive income:
Currency translation differences
-
-
-
(4)
(4)
Total comprehensive income
-
-
-
(226)
(226)
Share based payment
17
-
0
-
0
41
-
0
41
Balance at 31 December 2023
1
1,291
373
908
2,573
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
978
978
Balance at 31 December 2024
1
1,291
373
1,886
3,551
Link Up Mitaka Limited
Notes to the financial statements
For the year ended 31 December 2024
11
1
Accounting policies
Company information

Link Up Mitaka Limited (‘the Company’) provides language translation services.

The c ompany is a private company limited by shares and is incorporated in England and Wales under the Companies Act 2006. The address of its registered office is Brainworks, Unit 4 - Royds Close, Leeds, LS12 6LL.

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 a mounts in these financial statements are rounded to the nearest £'000.

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:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures; and

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.

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.

1.2
Going concern

The true d irectors manage the business on a UK group wide basis, "the group", and assess g oing c oncern at both a c ompany and g roup level. The going concern basis of preparation is considered applicable in the financial statements despite the group reporting a loss result for 2024. It is forecast to be profitable during the year ending December 2025 and beyond. The group is also in a strong net asset position and holds a significant positive cash balance.

The directors have considered the forecasted cash flows up to December 2026 and are comfortable with the current performance and the forecast which shows that there will continue to be a positive generation of cash to cover all liabilities which fall due over this period.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
12

The debt within the group is currently made up of a £24.5m term loan which is not due for payment until August 2026. There is also a £5m RCF agreement of which £2m was drawn down in January 2024. These are part of the same agreement and require the same covenant compliance including cashflow cover, adjusted leverage, and guarantor coverage. The continued and forecasted improvements in both EBITDA and cash generation enables the directors to be comfortable that the group will continue to be in compliance with all covenants and that the group will be able to either roll over or replace its debt facilities before their expiry date in August 2026.

Based on the above, the directors have a reasonable expectation that the company will continue to trade as a going concern for the foreseeable future with the necessary resources to do this.

The group guarantees the continuing operations of Link Up Mitaka Limited.

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for services rendered, net of discounts and rebates allowed by the c ompany and value added taxes.

The c ompany provides language translation services to customers. The c ompany recognises turnover when the service has been provided to the customer; the amount of turnover can be measured reliably and it is probable that future economic benefits will flow to the c ompany from the services provided. Turnover is recognised in the accounting period in which the services are rendered with future revenue included within accruals and deferred income.

Where the c ompany enters into a rebate agreement with customers, the rebate value is accrued against turnover once the turnover relating to the specific customer reaches the agreed threshold. Where the rebate period is not coterminous to the year end, the c ompany estimates whether or not the threshold will be met and accrues for the rebate value accordingly.

1.4
Intangible fixed assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives.

The estimated useful lives range as follows:

Software
3 to 5 years
Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
13

Amortisation is charged to administrative expenses in the profit and loss account.

Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

The assets are reviewed for impairment if the above factors indicate that the carrying amount may

be impaired.

Costs associated with maintaining software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Company are recognised as intangible assets when the following criteria are met:

- it is technically feasible to complete the software so that it will be available for use;

- management intends to complete the software and use or sell it;

- there is an ability to use or sell the software;

- it can be demonstrated how the software will generate probable future economic benefits;

- adequate technical, financial and other resources to complete the development and to use or sell the software are available;

- the expenditure attributable to the software during its development can be reliably measured.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

1.5
Tangible fixed assets

Tangible assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

Depreciation is provided on the following basis:

Fixtures and fittings
3 to 5 years

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.

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 within administrative expenses in the profit and loss account.

1.6
Fixed asset investments

Interests in subsidiaries 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.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
14
1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

Cash 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.

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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
15
Impairment of financial assets

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

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

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Equity instruments

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Dividends and other distributions to the c ompany’s shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
16
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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
Employee benefits

The c ompany provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plan.

(i) Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

(ii) Defined contribution pension plan

Employees of the c ompany are eligible to participate in a defined contribution plan, operated by the company. A defined contribution plan is a pension plan under which the c ompany pays fixed contributions into a separate entity. Once the contributions have been paid the c ompany has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in creditors in the balance sheet. The assets of the plan are held separately from the c ompany in independently administered funds.

1.13
Retirement benefits

The c ompany operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the c ompany pays fixed contributions into a separate entity. Once the contributions have been paid the c ompany has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in creditors in the balance sheet. The assets of the plan are held separately from the c ompany in independently administered funds.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
17
1.14
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 c ompany 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.

1.15
Leases

At inception the c ompany assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.

(i) Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

(ii) Lease incentives

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

1.16
Foreign exchange

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.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
18
2
Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical judgements

At 31 December 202 3, other than the assumptions below, the c ompany did not make any critical judgements in applying its accounting policies.

Key accounting estimates and assumptions

The c ompany makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the ageing profile of debtors and historical experience. See note 13 below for the net carrying amount of the debtors and associated impairment provisions.

Equity settled scheme

A share based payments charge was made in the year under an equity settled scheme by issuance of profit interest units. The units are split 50% time based which vest at a rate of 10% per annum over a 5 year vesting period and 50% performance based which vest in full over 5 years.

The company makes estimates on the fair value of these units over the vesting period by considering the non-market and market based conditions attached to them. It makes assumptions that the shares will vest over the full 5 year period and requires an estimate of the equity value of the g roup across the vesting period. See note 17 for the weighted average share price of the units.

Intangible fixed assets

In the current period the identification and valuation of intangibles acquired, as well as their respective useful economic lives, was a key estimate. Experts were engaged to assist with this process with the d irectors ensuring the underlying assumptions and approach in the valuation was appropriate. The Group considers whether intangible assets are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs. See note 9 for the carrying amount of intangible fixed assets.

Investment in subsidiary undertakings

The c ompany considers whether investments in subsidiary undertakings are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the future cash flows and net asset values from the subsidiary undertaking. See note 11 for the carrying amount of investments held.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
19
3
Turnover

The turnover derives from the provision of language translation services.

2024
2023
£'000
£'000
Turnover analysed by geographical market
United Kingdom
8,053
7,203
Rest of Europe
970
1,032
North America
125
147
Rest of world
147
101
9,295
8,483
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£'000
£'000
Exchange losses
56
15
Depreciation of owned tangible fixed assets
76
178
Amortisation of intangible assets
393
355
Operating lease charges
104
108
5
Auditor's remuneration

The Company bears responsibility for the group's audit fee (audit of the financial statements). Total fees amounted to £125,000 (202 3: £96,000).

In accordance with SI2008/489 the c ompany has not disclosed the fees payable to the c ompany's auditors for 'other services' as this information is included in the consolidated financial statements of thebigword Group Holdings Limited.

6
Employees

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

2024
2023
Number
Number
Administration
80
94
Sales
3
4
Total
83
98
Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
6
Employees (continued)
20

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
3,007
3,146
Social security costs
315
303
Pension costs
78
93
Equity settled scheme
-
41
3,400
3,583
7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
42
197
Company pension contributions to defined contribution schemes
5
23
Compensation for loss of office
116
108
163
328

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2).

During the year the company paid £115,509 (2023: £108,000) to a director as compensation for loss of office. This payment was made in accordance with the terms of the director's service contract and approved by the board of directors.

The payment comprised:

2024
2023
£'000
£'000
Payment in lieu
53
56
Severance payment
33
47
Settlement agreement
30
5
116
108
Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
21
8
Taxation
2024
2023
£'000
£'000
Deferred tax
Origination and reversal of timing differences
47
(152)
Adjustment in respect of prior periods
29
-
0
Total deferred tax
76
(152)

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

2024
2023
£'000
£'000
Profit/(loss) before taxation
1,054
(374)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
264
(88)
Tax effect of expenses that are not deductible in determining taxable profit
4
5
Effect of change in corporation tax rate
-
0
(2)
Group relief
(179)
55
Deferred tax adjustments in respect of prior years
29
(123)
Fixed asset differences
1
1
Movement in deferred tax not previously recognised
(43)
-
0
Taxation charge/(credit) for the year
76
(152)
Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
22
9
Intangible fixed assets
Software
£'000
Cost
At 1 January 2024
1,175
Additions
486
At 31 December 2024
1,661
Amortisation and impairment
At 1 January 2024
1,108
Amortisation charged for the year
393
At 31 December 2024
1,501
Carrying amount
At 31 December 2024
160
At 31 December 2023
67
10
Tangible fixed assets
Fixtures and fittings
£'000
Cost
At 1 January 2024
1,823
Additions
72
At 31 December 2024
1,895
Depreciation and impairment
At 1 January 2024
1,686
Depreciation charged in the year
76
At 31 December 2024
1,762
Carrying amount
At 31 December 2024
133
At 31 December 2023
137
Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
23
11
Fixed asset investments
2024
2023
Notes
£'000
£'000
Investments in subsidiaries
12
160
160
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Address
Class of shares held
% Held
Multilingual Services Limited
1
Ordinary
100
Mitaka Limited
1
Ordinary
100
Carmona UK Limited
1
Ordinary
100
thebigword Deutschland GmbH
2
Ordinary
100
thebigword Limited
1
Ordinary
100
thebigword Transcription Services Limited
1
Ordinary
100

Registered office addresses (all UK unless otherwise indicated):

1) Brainworks, Unit 4, Royds Close, Leeds, England, LS12 6LL
2) Königsallee 70 40212, Düsseldorf, Nordrhein-Westfalen Germany
13
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
1,534
1,888
Corporation tax recoverable
73
73
Amounts owed by group undertakings
49,396
55,722
Other debtors
173
197
Prepayments and accrued income
406
521
51,582
58,401
Deferred tax asset (note 15)
289
365
51,871
58,766

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

Trade debtors above are presented net of a provision of £22,000 (202 3: £20,000).

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
24
14
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Trade creditors
975
929
Amounts owed to group undertakings
46,734
54,556
Taxation and social security
71
76
Other creditors
27
73
Accruals and deferred income
1,430
1,537
49,237
57,171

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

15
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
151
336
Short term timing differences
138
29
289
365
2024
Movements in the year:
£'000
Asset at 1 January 2024
(365)
Charge to profit or loss
76
Asset at 31 December 2024
(289)

The deferred taxation asset detailed above is expected to reverse in the 12 months following the balance sheet date.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
25
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
74
89

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.

Contributions amounting to £24,000 (202 3: £72,000) were payable to the scheme at the year end.

17
Share-based payment transactions

The company operates an equity-settled share based remuneration scheme for a number of key

employees. Shares consist of 278,549 units (2023: 278,549 units) split 50% time based units which vest at a rate of 10% per annum over a 5 year vesting period and 50% perfo r mance based shares which vest in full over 5 years.

The shares issued are in the ultimate parent company.

Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£'000
£'000
Outstanding at 1 January 2024
278,549
696,373
-
0
58.70
Forfeited
(222,839)
(417,824)
-
0
58.70
Outstanding at 31 December 2024
55,710
278,549
-
0
58.70
Exercisable at 31 December 2024
-
0
-
0
-
0
-
0

During the year an expense was recorded in the profit and loss of £nil (202 3: £40,511), was incurred in respect of the above scheme.

All restricted stock are issued with a £nil exercisable price.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of 0.001p each
16,329,000
16,329,000
1
1

Rights preferences and restrictions:

Each of the shares carry a voting right and equal rights to participate in any discretional dividends.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
26
19
Reserves
Share premium

Share premium represents the premium on issue of equity shares, net of any issue costs.

Profit and loss reserves

Retained earnings represents cumulative profits or losses net of dividends paid and other adjustments.

Capital contribution reserve

This reserve represents the value of share based payments granted by the parent company to the employees of its subsidiary over the vesting period of the share options.

20
Financial commitments, guarantees and contingent liabilities

As at the balance sheet date, the company is party to a fixed and floating charge over all of its assets in favour of Kartesia. thebigword Group Holdings Limited and fellow subsidiaries have a total facility with Kartesia for £27,031k (2023: £25,172k).

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
£'000
£'000
Within one year
103
100
Between two and five years
75
175
178
275
22
Related party transactions
Remuneration of key management personnel

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the Group are considered to be key management personnel. Total remuneration in respect of these individuals is £nil (2023: £305,237) which includes profit interest units with a fair value of £nil (202 3: £40,511).

23
Parent company

The c ompany is a subsidiary undertaking of thebigword Group Limited, a company incorporated in Great Britain and registered in England and Wales.

thebigword Group Holdings Limited is the parent company of the largest group for which consolidated financial statements are drawn up.

Copies of the consolidated financial statements of thebigword Group Holdings Limited may be obtained from Brainworks, Unit 4, Royds Close, Leeds, England, LS12 6LL.

Link Up Mitaka Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
27
24
Ultimate controlling party

The d irectors do not regard there to be any ultimate controlling party due to the ownership structure of the g roup.

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