REGISTERED NUMBER: 11266456 (England and Wales)

Red Flag Alert Technology

Group Limited

Financial Statements

for the Year Ended 31 March 2025

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

RW Traynor

MS Halstead

RA West

Ms FL Hatch

MF McGoun

REGISTERED OFFICE:

49 Peter Street

Manchester

Greater Manchester

M2 3NG

REGISTERED NUMBER:

11266456 (England and Wales)

AUDITORS:

Sedulo Audit Limited

5th Floor

Walker House

Exchange Flags

Liverpool

L2 3YL

FIXED ASSETS

Intangible assets

4

265,402

269,205

Tangible assets

5

54,673

73,994

Investments

6

1

1

320,076

343,200

CURRENT ASSETS

Debtors

7

1,173,049

1,354,635

Cash at bank

1,654,290

399,949

2,827,339

1,754,584

CREDITORS

Amounts falling due within one year

8

2,179,287

2,394,795

NET CURRENT ASSETS/(LIABILITIES)

648,052

(640,211

)

TOTAL ASSETS LESS CURRENT LIABILITIES

968,128

(297,011

)

CREDITORS

Amounts falling due after more than one year

9

3,674,843

2,475,077

NET LIABILITIES

(2,706,715

)

(2,772,088

)

CAPITAL AND RESERVES

Called up share capital

11

3,433,656

1,575,144

Share premium

2,288,962

1,050,024

Retained earnings

(8,429,333

)

(5,397,256

)

SHAREHOLDERS' FUNDS

(2,706,715

)

(2,772,088

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2025 and were signed on its behalf by:

RA West - Director

1.	STATUTORY INFORMATION

Red Flag Alert Technology Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The amounts in the financial statements have been rounded to the nearest £1.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The financial statements have been prepared on the going concern basis despite the excess of liabilities over assets. The directors have assessed going concern by reviewing the company's future cashflow requirements and the forecasts prepared by management that extend beyond 12 months from the date of signing. The company has also attained a letter of support from the director and majority shareholder, who has committed to support the company as required for at least 12 months from the date the accounts are signed/approved.

Preparation of consolidated financial statements

The financial statements contain information about Red Flag Alert Technology Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Class of asset

Estimated useful economic life

Client list

5 years

Historic client base

2 years

Intellectual property

5 years

Brand awareness

10 years

Software is amortised at 33% on cost.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors, prepayments and bank and cash balances and bank and cash equivalents, are initially measured at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the asset is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities, which include creditors, accruals, overdrafts and such equivalents, together with bank or similar loans and group and related party borrowings, are initially recognised at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the liability is measured at the present value of the future obligations discounted at a market rate of interest.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 51 (2024 - 48 ) .

4.	INTANGIBLE FIXED ASSETS

Intangible

Computer

assets

software

Totals

£

£

£

COST

At 1 April 2024

348,411

-

348,411

Additions

528

74,874

75,402

At 31 March 2025

348,939

74,874

423,813

AMORTISATION

At 1 April 2024

79,206

-

79,206

Amortisation for year

79,205

-

79,205

At 31 March 2025

158,411

-

158,411

NET BOOK VALUE

At 31 March 2025

190,528

74,874

265,402

At 31 March 2024

269,205

-

269,205

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2024

72,322

62,991

135,313

Additions

2,430

9,619

12,049

At 31 March 2025

74,752

72,610

147,362

DEPRECIATION

At 1 April 2024

23,524

37,795

61,319

Charge for year

14,606

16,764

31,370

At 31 March 2025

38,130

54,559

92,689

NET BOOK VALUE

At 31 March 2025

36,622

18,051

54,673

At 31 March 2024

48,798

25,196

73,994

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2024

and 31 March 2025

1

NET BOOK VALUE

At 31 March 2025

1

At 31 March 2024

1

The fixed asset investment represents the entire issued share capital of Red Flag Alert Technology (Ireland) Limited which is registered in Ireland and is presently dormant.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

748,809

781,969

Other debtors

37,800

-

Taxation recoverable

293,111

502,442

Directors' current accounts

25,503

-

Prepayments and accrued income

67,826

70,224

1,173,049

1,354,635

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

429,349

150,431

Social security and other taxes

106,944

91,705

VAT

68,244

178,902

Other creditors

26,281

14,847

Amounts owed to related

party undertakings

8,193

18,950

Other loan

-

274,666

Directors' current accounts

-

306,949

Accruals and deferred income

1,540,276

1,358,345

2,179,287

2,394,795

The directors loans are interest free, unsecured and have no fixed repayment terms.

Included within other creditors, both within and over one year, are shareholders unsecured loan notes which are repayable by 1 April 2028 and carry interest at 6% pa on £1,864,603 and 9% on £1,387,500. Certain of the shareholders are also directors of the company and the amount of £1,864,603 is due to certain directors.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Amounts owed to group undertakings

1

1

Other creditors

3,674,842

2,475,076

3,674,843

2,475,077

10.	LEASING AGREEMENTS

The company had operating lease commitments of £117,856 (2024: £172,838) at the year end.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Class

No

Nominal

2025

2024

value

£

£

£

A Ordinary shares

85,042

0.001

86

44

B Ordinary shares

19.980

0.001

20

20

C Ordinary shares

80,000

0.001

80

80

PP Ordinary shares

3,433,470

1.00

3,433,470

1,575,000

F Ordinary shares

20

0.001

-

-

3,618,512

3,433,656

1,575,144

During the year the company issued 1,858,470 ordinary PP shares and 41,362 Ordinary A shares for a total of £3,097,450 which includes a premium totalling £1,238,938.

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Katelyn Dutton (Senior Statutory Auditor)

for and on behalf of Sedulo Audit Limited

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

At the year end there were balances totalling £25,503 (2024:Nil) owed by directors on their loan accounts. No interest was charged during this year on these amounts.

At the year end there were balances totalling £Nil (2024: £306,949) owing to the directors on their loan accounts. No interest was paid to the directors during this or the prior year on these amounts.

There is an amount owing of £8,193 (2024: £18,950) owing to Red Flag A!ert LLP, which is included in amounts owed to related parties. A director of the company, Mr R W Traynor is also a member of this LLP.

14.	ULTIMATE CONTROLLING PARTY

In the opinion of the directors the company is controlled by Mr RW Traynor, a director of the company, by virtue of his shareholding.