The notes on pages 4 to 7 form part of these financial statements.

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

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 Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

State of Flux Limited is a private company limited by shares incorporated in England and Wales. The registered office is 107/111 Fleet Street, London, EC4A 2AB.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the balance sheet date the net assets of the company increased to £488,127 (2023: £275,518) as the directors took significant action during 2024 and continue to take significant action during 2025 to reduce costs, increase sales and settle the companies liabilities. The success of the continued strategy of more managed services rather than projects, as well as increased bank financing has seen company growth. The directors therefore have a reasonable expectation that the company will continue in operational existence for the foreseeable future, and at least 12 months from the date of signing the financial statements, and therefore the directors are satisfied it is appropriate to prepare these financial statements on the going concern basis.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Income is generated though consulting and licensing of software implementation in the development of business.

During the year, the Company received sponsorship income of £29,829 from a client, which has been recognised within other income. The sponsorship income relates to the hosting of an event and has been recognised in accordance with the terms of the sponsorship agreement.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation 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:

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.

Interests in subsidiaries and other current investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment 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.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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).

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. 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 assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, are initially recognised at transaction price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 at transaction price.

The tax expense represents the sum of the tax currently payable.

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.

R&D tax relief is claimed and tax credits are applied for where applicable by surrendering the available trading tax losses of the company.

The costs of short-term employee benefits are recognised as a liability and an expense.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Government grants

Coronavirus support loans are recognised initially at the amount of proceeds received, net of any directly attributable transaction costs. Subsequent to initial recognition, the loans are measured at amortised cost using the effective interest rate method.

Interest expense is recognised in profit or loss over the term of the loan.

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

The bank loan included in current and non-current creditors is secured by a fixed and floating charge over the assets of the company.

At the balance sheet date the company was owed £114,352 (2023 - £114,352) by the directors. This amount is unsecured, interest-free and repayable on demand.