Registered number: 06968249
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
NATTERBOX LIMITED
Company Information
NATTERBOX LIMITED
Contents
NATTERBOX LIMITED
Strategic report
For the Year Ended 31 December 2024
2024 marked a pivotal year in Natterbox Limited's evolution as we executed a bold strategic transformation from a traditional telecommunications provider to an AI-powered contact centre platform company. Trading as Natterbox (www.natterbox.com), we have repositioned ourselves at the forefront of the contact centre revolution, harnessing artificial intelligence to redefine how businesses engage with their customers.
Our strategic pivot addresses a fundamental market shift: the future of customer engagement is omnichannel and AI-enhanced. We have moved beyond voice-only solutions to create a comprehensive platform that seamlessly integrates digital and voice channels, powered by cutting-edge AI capabilities that work in harmony with human agents.
The transformation centred on two groundbreaking AI initiatives:
Our strategic pivot addresses a fundamental market shift: the future of customer engagement is omnichannel and AI-enhanced. We have moved beyond voice-only solutions to create a comprehensive platform that seamlessly integrates digital and voice channels, powered by cutting-edge AI capabilities that work in harmony with human agents.
The transformation centred on two groundbreaking AI initiatives:
1.AI Advisor: Our intelligent assistance platform that augments human agents' capabilities while delivering actionable business intelligence to our customers. This solution transforms contact centres from cost centres into strategic assets by providing real-time insights, automated quality assurance, and intelligent coaching.
2.AI Workforce: Our autonomous AI agents designed to work seamlessly alongside human agents, handling customer interactions across both voice and digital channels. This hybrid approach ensures that AI handles routine enquiries efficiently whilst human agents focus on complex, high-value interactions requiring empathy and nuanced judgement, positioning Natterbox as a pioneer in hybrid AI-human customer service.
Throughout this transformation, we have maintained and strengthened our strategic partnership with Salesforce, continuing to enhance our Service Cloud Voice integration. This partnership remains central to our strategy, enabling us to deliver our AI innovations directly within the Salesforce ecosystem where many of our enterprise customers operate. Our AI capabilities complement Salesforce's CRM platform, creating a powerful combination that delivers intelligent, context-aware customer experiences.
This strategic realignment required decisive resource allocation. We strategically redirected investment from traditional sales and marketing activities into research and development, accelerating our AI capabilities development. This calculated decision reflects our commitment to innovation-led growth and our confidence in the transformative power of our technology.
This strategic realignment required decisive resource allocation. We strategically redirected investment from traditional sales and marketing activities into research and development, accelerating our AI capabilities development. This calculated decision reflects our commitment to innovation-led growth and our confidence in the transformative power of our technology.
Despite our significant pivot and increased R&D investment, the company demonstrated resilience with revenue growth exceeding 7% to £18.96 million (2023: £17.6 million), validating market appetite for our evolving proposition.
Our investment in transformation is reflected in our financial metrics:
Our investment in transformation is reflected in our financial metrics:
∙Gross profit increased 6.6% to £13.3 million, demonstrating the underlying strength of our business model
∙Administrative expenses increased by 14.5%, primarily driven by the expanded R&D team provided through our fellow subsidiary company, Red Matter Ltd, and AI development initiatives
∙Successfully maintained cash resources of £2.4 million whilst funding our transformation
The strategic decision to prioritise innovation over short-term profitability positions us to capture the emerging opportunity in AI-powered customer engagement, where human and AI agents collaborate to deliver superior customer experiences.
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NATTERBOX LIMITED
Strategic report (continued)
For the Year Ended 31 December 2024
Our transformation strategy acknowledges several key risks whilst positioning us to capitalise on unprecedented opportunities:
∙Technology Leadership Risk: The rapid evolution of AI technology requires continuous innovation. Through Red Matter Ltd, we have assembled a world-class AI development team and established strategic partnerships with leading AI infrastructure providers to maintain our competitive edge.
∙Market Adoption Timing: Whilst AI adoption in contact centres is accelerating, successful implementation requires careful change management. Our approach of creating AI that complements rather than replaces human agents reduces adoption friction and allows organisations to transition at a sustainable pace.
∙Talent Retention: Our pivot to AI has enhanced our ability to attract top-tier engineering talent. We have implemented comprehensive equity participation programmes and created an innovation-first culture that positions Natterbox as an employer of choice in the AI sector.
∙Financial Sustainability: Our strategic reallocation of resources in the group from sales to R&D represents a calculated investment in long-term market leadership. With strong investor support, including new funding facilities secured in 2024, we maintain the financial flexibility to complete our transformation whilst scaling our AI capabilities.
2025 will be a year of careful implementation as we work closely with existing customers to demonstrate the transformative benefits of an AI Workforce complementing their human agents. We have recently started live customer deployments, with initial implementations focusing on proving the value of human-AI collaboration in delivering exceptional customer experiences.
The official launch of our AI Workforce in 2025 represents a significant milestone - delivering the industry's first truly collaborative AI-human customer service platform. Our solution dramatically reduces wait times whilst ensuring complex queries receive the human touch they require, creating a balanced approach that optimises both efficiency and customer satisfaction.
Our continued partnership with Salesforce ensures our AI innovations are accessible to the vast Salesforce ecosystem. We continue to deliver important updates to Service Cloud Voice whilst integrating our AI capabilities, creating unique value for joint customers who can leverage the power of Salesforce CRM data with our intelligent automation.
Our product roadmap includes continuous enhancement of our AI capabilities through machine learning refinement, expansion of language support, and deeper integration with enterprise systems. Crucially, we are focused on ensuring seamless handoffs between AI and human agents, creating a unified experience that customers perceive as consistently excellent regardless of which type of agent assists them.
As we progress through 2025, our focus remains on:
The official launch of our AI Workforce in 2025 represents a significant milestone - delivering the industry's first truly collaborative AI-human customer service platform. Our solution dramatically reduces wait times whilst ensuring complex queries receive the human touch they require, creating a balanced approach that optimises both efficiency and customer satisfaction.
Our continued partnership with Salesforce ensures our AI innovations are accessible to the vast Salesforce ecosystem. We continue to deliver important updates to Service Cloud Voice whilst integrating our AI capabilities, creating unique value for joint customers who can leverage the power of Salesforce CRM data with our intelligent automation.
Our product roadmap includes continuous enhancement of our AI capabilities through machine learning refinement, expansion of language support, and deeper integration with enterprise systems. Crucially, we are focused on ensuring seamless handoffs between AI and human agents, creating a unified experience that customers perceive as consistently excellent regardless of which type of agent assists them.
As we progress through 2025, our focus remains on:
∙Working with existing customers to successfully transition them to our hybrid AI-human model
∙Achieving live deployments from mid-2025, with careful attention to customer success
∙Deepening our Salesforce partnership and Service Cloud Voice integration
∙Refining the collaboration between AI and human agents based on real-world feedback
∙Building case studies that demonstrate measurable improvements in customer experience metrics
∙Continuing to invest in our AI capabilities whilst maintaining service reliability
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NATTERBOX LIMITED
Strategic report (continued)
For the Year Ended 31 December 2024
The board is confident that our strategic transformation, combined with our pragmatic approach to implementation and strong technology partnerships, positions Natterbox Limited to emerge as a leader in collaborative AI-powered customer engagement, creating sustainable value for our customers, employees, and shareholders.
This report was approved by the board and signed on its behalf.
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NATTERBOX 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.
The profit for the year, after taxation, amounted to £1,007,413 (2023 - £1,773,420).
The directors who served during the year were:
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company'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 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 to 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.
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NATTERBOX LIMITED
Directors' report (continued)
For the Year Ended 31 December 2024
The auditors, Sayers Butterworth LLP, will 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.
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NATTERBOX LIMITED
Independent auditors' report to the members of Natterbox Limited
We have audited the financial statements of Natterbox Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and loss account, the Balance sheet and the related notes, including a summary of 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).
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 Company 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.
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.
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NATTERBOX LIMITED
Independent auditors' report to the members of Natterbox Limited (continued)
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 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the 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 Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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NATTERBOX LIMITED
Independent auditors' report to the members of Natterbox Limited (continued)
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 financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions were held with, and enquiries made of management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcome of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
· Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pension legislation, and distributable profits legislations.
· It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
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NATTERBOX LIMITED
Independent auditors' report to the members of Natterbox Limited (continued)
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 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.
for and on behalf of
Chartered Accountants & Statutory Auditor
3rd Floor
12 Gough Square
EC4A 3DW
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NATTERBOX LIMITED
Profit and loss account
For the Year Ended 31 December 2024
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NATTERBOX LIMITED
Registered number: 06968249
Balance sheet
As at 31 December 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 22 form part of these financial statements.
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NATTERBOX LIMITED
Statement of changes in equity
For the Year Ended 31 December 2024
Statement of changes in equity
For the Year Ended 31 December 2023
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
Natterbox Limited is a private limited company incorporated in the United Kingdom and registered in England and Wales. The company's registered office is 3rd Floor, 12 Gough Square, London, EC4A 3DW.
The principal activity of the company is the provision of hosted telecommunications services.
The principal activity of the company is the provision of hosted telecommunications services.
2.Accounting policies
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 management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
The accounts have been prepared by the directors under the going concern basis despite an excess of liabilities over total assets.
The directors consider this appropriate as N2JB Limited, its ultimate parent company, has confirmed that it will provide the company with whatever financial support may be necessary in order to enable Natterbox Limited to meet its liabilities and commitments as they fall due within the foreseeable future.
The directors consider this appropriate as N2JB Limited, its ultimate parent company, has confirmed that it will provide the company with whatever financial support may be necessary in order to enable Natterbox Limited to meet its liabilities and commitments as they fall due within the foreseeable future.
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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:
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.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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.
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
Analysis of turnover by country of destination:
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
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NATTERBOX LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
The parent undertaking of the smallest group of which Natterbox Limited is a member and consolidated accounts are prepared is N2JB Limited. Its registered office is 3rd Floor, 12 Gough Square, London, EC4A 3DW.
A loan provided to the parent company is secured by a fixed and floating charge over the assets of N2JB Limited and its UK subsidiaries. The balance of this loan at 31 December 2024 was £7,000,000 (2023: £4,650,000).
The company also has a cross-guarantee to N2JB Limited in respect of other loans amounting to £4,019,574 (2023: £2,358,644).
The company also has a cross-guarantee to N2JB Limited in respect of other loans amounting to £4,019,574 (2023: £2,358,644).
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