Red Flag Alert Technology Group Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: 11266456 (England and Wales)

Red Flag Alert Technology

Group Limited

Financial Statements

for the Year Ended 31 March 2026

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

RW Traynor

MS Halstead

RA West

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

1,352,443

455,869

Tangible assets

5

29,324

54,673

Investments

6

1

1,381,768

510,543

CURRENT ASSETS

Debtors

7

1,497,726

1,173,049

Cash at bank

455,992

1,654,290

1,953,718

2,827,339

CREDITORS

Amounts falling due within one year

8

2,723,861

2,179,287

NET CURRENT (LIABILITIES)/ASSETS

(770,143

)

648,052

TOTAL ASSETS LESS CURRENT
LIABILITIES

611,625

1,158,595

CREDITORS

Amounts falling due after more than one
year

9

3,911,595

3,674,843

NET LIABILITIES

(3,299,970

)

(2,516,248

)

CAPITAL AND RESERVES

Called up share capital

11

3,433,656

Share premium

2,288,962

Retained earnings

(9,022,588

)

(8,238,866

)

SHAREHOLDERS' FUNDS

(3,299,970

)

(2,516,248

)

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 15 October 2026 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.

Critical accounting judgements and key sources of estimation uncertainty

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and assumptions are based on historical experience and other factors considered relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if it affects both.

Critical judgements in applying the company's accounting policies

Revenue recognition.

Subscription contracts may include platform access, data services and onboarding or implementation services. The directors have judged that onboarding is not a distinct performance obligation and that revenue from platform access is recognised evenly over the subscription term. Amounts invoiced in advance are held in deferred income (£1.5m; 2025: £1.2m).

Capitalisation of development costs.

Costs of developing the company's software platform are capitalised when the criteria in FRS 102 para 18.8H are met. This requires judgement about technical feasibility, the intention and ability to complete and use the asset, and whether it is probable that future economic benefits will flow to the company. Development costs capitalised in the year were £952k (2025: £265k).

Key sources of estimation uncertainty

Useful economic life of capitalised development costs.

Development costs are amortised over 5 years, the directors' estimate of the period over which the platform will generate economic benefits. The carrying amount at the year end was £1.2m. A reduction in the estimated useful life of one year would increase the annual amortisation charge by approximately £61k.

Impairment of intangible assets.

Where there are indicators of impairment, the directors estimate the recoverable amount based on value-in-use calculations. These require assumptions about future cash flows, growth rates and a discount rate of 10%. The carrying amount at the year end was £136k.

Recoverability of trade debtors.

The directors estimate the provision for impairment of trade debtors based on ageing, historical default experience and customer-specific information. The carrying amount of trade debtors was £1.1m, net of a provision of £60k.

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

Computer software

5 years

Capitalisation of development costs

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 44 (2025 - 51 ) .

4.	INTANGIBLE FIXED ASSETS

Intangible

Computer

assets

software

Totals

£

COST

At 1 April 2025

348,939

265,341

614,280

Additions

-

951,574

At 31 March 2026

348,939

1,216,915

1,565,854

AMORTISATION

At 1 April 2025

158,411

-

158,411

Amortisation for year

55,000

-

55,000

At 31 March 2026

213,411

-

213,411

NET BOOK VALUE

At 31 March 2026

135,528

1,216,915

1,352,443

At 31 March 2025

190,528

265,341

455,869

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

COST

At 1 April 2025

74,752

72,610

147,362

Additions

363

1,985

2,348

At 31 March 2026

75,115

74,595

149,710

DEPRECIATION

At 1 April 2025

38,130

54,559

92,689

Charge for year

15,023

12,674

27,697

At 31 March 2026

53,153

67,233

120,386

NET BOOK VALUE

At 31 March 2026

21,962

7,362

29,324

At 31 March 2025

36,622

18,051

54,673

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2025

and 31 March 2026

1

NET BOOK VALUE

At 31 March 2026

1

At 31 March 2025

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

2026

2025

as restated

£

Trade debtors

1,013,178

748,809

Other debtors

-

37,800

Taxation recoverable

254,383

293,111

Amounts owed by related

party undertakings

2,083

-

Directors' current accounts

25,503

Prepayments and accrued income

202,579

67,826

1,497,726

1,173,049

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

as restated

£

Trade creditors

668,737

429,349

Social security and other taxes

89,548

106,944

VAT

157,989

68,244

Other creditors

6,064

26,281

Amounts owed to related

party undertakings

-

8,193

Accruals and deferred income

1,801,523

1,540,276

2,723,861

2,179,287

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

2026

2025

as restated

£

Amounts owed to group undertakings

1

Other creditors

3,911,594

3,674,842

3,911,595

3,674,843

10.	LEASING AGREEMENTS

The company had operating lease commitments of £63,796 (2025: £117,856) at the year end.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Class

No

Nominal

2026

2025

value

£

A Ordinary shares

86,042

0.001

86

B Ordinary shares

19.980

0.001

20

C Ordinary shares

80,000

0.001

80

PP Ordinary shares

3,433,470

1.00

3,433,470

F Ordinary shares

20

0.001

-

3,619,512

3,433,656

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 (2025: £25,503) owed by directors on their loan accounts. No interest was charged during this year on these amounts.

There is an amount of £2,083 (2025: £8,193 (owing)) owed by 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.	POST BALANCE SHEET EVENTS

On 2nd of September 2026, the company allotted and issued 6,156 ordinary shares of £0.001 each at a price of £29.24 per share, for a total cash consideration of £180,000. The shares rank pari passu with the existing ordinary shares.

On the same date, the company allotted and issued 270,000 preference shares of £1 each at a price of £1 per share, for a total cash consideration of £270,000.

On the same date, the company issued £550,000 (of which £400,000 are convertible) unsecured loan notes. The loan notes carry interest at 6% and 9% per annum, payable on redemption.

The total proceeds of £1m will be used to fund planned business operations work.

As these events happened after the reporting date, they have not been reflected in these financial statements. Had they occurred before 31st March 2026, share capital would have increased by £270,006, share premium by £179,994, and creditors would have increased by £550,000 falling due after more than one year.

15.	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.