Five Nines Digital Ltd Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 12201800

FIVE NINES DIGITAL LTD

FILLETED UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED

31 December 2024

FIVE NINES DIGITAL LTD

STATEMENT OF FINANCIAL POSITION

31 December 2024

	2024		2023
Note	£	£	£

FIXED ASSETS

Intangible assets	5	512,582	231,021
Tangible assets	6	17,411	9,950
		---------	---------
		529,993	240,971

CURRENT ASSETS

Debtors	7	7,966	–
Cash at bank and in hand		149,724	189,429
		---------	---------
		157,690	189,429

CREDITORS: amounts falling due within one year	8	( 550,951)		( 220,056)
		---------		---------
NET CURRENT LIABILITIES			( 393,261)	( 30,627)
			---------	---------
TOTAL ASSETS LESS CURRENT LIABILITIES			136,732	210,344

CREDITORS: amounts falling due after more than one year	9	( 21,337)	( 32,469)
		---------	---------
NET ASSETS		115,395	177,875
		---------	---------

CAPITAL AND RESERVES

Called up share capital	16	16
Share premium account	636,121	636,121
Profit and loss account	( 520,742)	( 458,262)
	---------	---------
SHAREHOLDERS FUNDS	115,395	177,875
	---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

FIVE NINES DIGITAL LTD

STATEMENT OF FINANCIAL POSITION (continued)

31 December 2024

These financial statements were approved by the board of directors and authorised for issue on 7 April 2025 , and are signed on behalf of the board by:

S Porter

Director

Company registration number: 12201800

FIVE NINES DIGITAL LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 24-28 Bloomsbury Way, London, WC1A2SN, England.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. The financial statements have been prepared on the going concern basis. The directors consider the going concern basis to be appropriate as the directors have confirmed their ongoing support.

Changes in accounting estimates

Prior to 1 January 2023, the company did not capitalise development costs as the directors were uncertain that future revenue from third party sales of a development project would ensure that the costs would be recovered. From 1 January 2023, the directors have re-assessed market conditions and are now satisfied that the development project is commercially viable in respect of future third party sales. The directors now estimate that the development project has an estimated useful life of 5 years from 1 January 2023. Current year and future development costs in respect of the development project will be capitalised as incurred. As a result of this change in the accounting estimate, £57,755 of amortisation has been recognised in the current year.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover comprises revenue recognised by the company in respect of goods supplied, exclusive of Value Added Tax. In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts for on-going services is recognised by reference to the stage of completion.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

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

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Development costs	-	5 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Equipment	-	3 years

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit and loss. Derivative financial instruments are initially recorded at transaction price and thereafter at fair value with changes recognised in profit and loss. The company holds the following financial assets and liabilities: Cash, Short-term trade and other debtors, and creditors. Cash in the balance sheet comprises cash at banks and in hand and short term deposits with an original maturity date of three months or less. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account before operating profit.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 23 (2023: 14 ).

5. INTANGIBLE ASSETS

	Development costs
	£
Cost
At 1 January 2024	288,776
Additions	–
Additions from internal developments	424,146
	---------
At 31 December 2024	712,922
	---------
Amortisation
At 1 January 2024	57,755
Charge for the year	142,585
	---------
At 31 December 2024	200,340
	---------
Carrying amount
At 31 December 2024	512,582
	---------
At 31 December 2023	231,021
	---------

6. TANGIBLE ASSETS

	Equipment
	£
Cost
At 1 January 2024	24,157
Additions	23,213
	--------
At 31 December 2024	47,370
	--------
Depreciation
At 1 January 2024	14,207
Charge for the year	15,752
	--------
At 31 December 2024	29,959
	--------
Carrying amount
At 31 December 2024	17,411
	--------
At 31 December 2023	9,950
	--------

7. DEBTORS

	2024	2023
	£	£
Other debtors	7,966	–
	-------	----

8. CREDITORS: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	10,805	–
Social security and other taxes	101,829	53,685
Other creditors	438,317	166,371
	---------	---------
	550,951	220,056
	---------	---------

9. CREDITORS: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	21,337	32,469
	--------	--------