REG - Silver Bullet Data - Final Results for the year ended 31 December 2024
30/06/2025 17:15
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RNS Number : 0598P Silver Bullet Data Services Grp PLC 30 June 2025
30 June 2025
Silver Bullet Data Services Group plc
("Silverbullet" or the "Company", or, together with its subsidiaries, the
"Group")
Final Results for the year ended 31 December 2024
Silverbullet (AIM: SBDS), a provider of AI driven digital transformation
services and products, is pleased to announce its audited results for the
year ended 31 December 2024 ("FY24").
FINANCIAL HIGHLIGHTS
YE December 2024 YE December 2023 Y-O-Y
Revenue £9.37m £8.36m +12%
Gross Profit £7.13m £6.36m +12%
Headline Loss before tax* £2.94m £3.23m -9%
Reported Loss before tax £3.04m £3.45m -12%
Loss Per Share £0.17 £0.20 -15%
* Headline results are calculated before exceptional items and share option
charges, the reconciliation for which is shown in note 5 of the consolidated
financial statements.
· Group revenue increased by 12% to £9.37m (2023: £8.36m).
· Services revenue increased by 8% to £6.0m (2023: £5.55m).
· 4D revenue increased by 20% to £3.37m (2023: £2.81m) driven by US demand for
the product.
· US and globally operating clients now account for more than 60% of total Group
revenues.
· The Board delivered on its commitment of reporting a positive EBITDA during Q4
of FY24 and 2025 has started strongly.
POST-PERIOD END HIGHLIGHTS
· Unaudited Group revenue for the five months to 31 May 2025 grew by 13% to
£4.03m, with services revenue up by 10% and 4D revenue up 18%, versus the
comparable prior year period.
· 4D revenues in Q1 2025 increased by 59% compared with Q1 2024, reflecting
growing demand for AI-driven solutions.
· Secured a two-year, minimum US$1.5m contract with a global retailer for data
management and activation using 4D AI and Codec.
· Won two new contracts with global beverage and FMCG brands for 4D AI targeting
via The Trade Desk.
· A strong pipeline and traction from The Trade Desk integration provide
confidence in continued revenue and margin growth.
· Completed 4D AI integration with a leading global demand-side platform,
enabling clients to use advanced contextual targeting across connected TV,
online video, and Display.
· Successfully raised £3.3m via the issue of new convertible loan notes
("CLNs"), loan notes, a subscription and a WRAP Retail Offer (the
"Fundraise").
· As part of the Fundraise, restructured and consolidated existing CLNs into new
three-year CLNs simplifying the Group's capital structure and aligning
financing with the Group's growth plans.
· The Board views the future with confidence, driven by strong demand for
Silverbullet's AI-led data and digital services.
Ian James, Chief Executive Officer of Silverbullet, commented:
"We are pleased with what has been a transformative year for Silverbullet. We
delivered on our commitment to report a positive EBITDA run rate during Q4 of
FY24 and a strong performance has continued into 2025, underpinned by good
revenue visibility, new client wins, and continued trading momentum.
"We are also delighted to have successfully restructured and consolidated our
CLNs, raising additional capital that puts the business on a firmer financial
footing while providing flexibility to support the growth we are seeing across
our AI-driven products and services.
"With a strong pipeline, growing demand for privacy-first data solutions, and
continued operational discipline, we are well positioned to build on this
momentum and look forward to updating the market."
Annual Report
The Annual Report for the year ended 31 December 2024 will be available to
shareholders and investors on the Company's website
at: https://investors.wearesilverbullet.com/investors/financial-reports
(https://investors.wearesilverbullet.com/investors/financial-reports) .
For further information please contact:
Silverbullet via IFC
Ian James (CEO) / Chris Ellis (CFO)
0207 409 3494
Strand Hanson Limited - Financial and Nominated Adviser
James Spinney / James Bellman / Robert Collins
020 3179 5300
Oberon Capital - Joint Broker
Mike Seabrook / Jessica Cave
0203 829 5000
Zeus Capital Limited - Joint Broker
Simon Johnson / Jake Walker
0203 003 8632
CMC Markets - Joint Broker
Douglas Crippen
020 3934 6630
07793 839 024
IFC Advisory
Graham Herring / Tim Metcalfe / Florence Staton
About Silverbullet
Silverbullet's proprietary 4D AI advertising solution is designed to help
advertisers target consumers in a "privacy-first world". The product is a
natural extension to its existing services business which already serves a
blue-chip client base such as a leading UK hospitality brand and a Global
Brewing company, amongst many others.
Headquartered in London, the Group employs 85+ data specialists across five
regions across the globe, including, the UK, Italy, Australia, USA and Latin
America. The Group continues to look at other opportunities for expansion
worldwide.
The Company has an established and growing solutions business with significant
accumulated industry experience and a proven track record of delivering
strategic digital transformation and activation services to its clients. The
majority of the Board have held senior positions at global software companies
and have significant industry experience across data engineering, SAAS product
development and marketing.
CHAIRMAN'S STATEMENT
It is my pleasure to present the annual results of Silverbullet Data Services
Group Group PLC ("Silverbullet", the "Company" or, together with its
subsidiaries, the "Group"). I, of course, should start with the recent
announcement relating to the restructuring of the company's debt structure.On
the 23(rd) June the Company raised £3,141,160 (before expenses) via the issue
of £1,951,000 new convertible loan notes, the issue of a £750,000 loan
note and £440,160 of 1,467,200 new ordinary shares of 1 pence each in the
Company at a price of 30 pence per share. From these funds, the Company
settled the balance owed to Gresham House Asset Management of £2.2m under its
loan notes issued in June 2022 and raised additional working capital to
continue to take advantage of the market opportunity.
I am very pleased with the continued progress made in in 2024, the Company
once again delivering strong revenue growth at improved margins. The
management team continues to successfully expand the business with large
premier blue chip clients, further validation of the targeted approach in an
accelerating market opportunity.
The integration of 4D, our AI contextual data platform that sits within our CX
Product Studio, into The Trade Desk(TTD) is a significant milestone in the
Company's journey. The product is now demonstrably showing true maturity and
it is now generating the kind of interest and activity that was anticipated
when the product was first launched. Equally, our strategic managed services,
within our CX Solutions Suite continue to grow and develop delivery led
first-class results.
Silverbullet acquired Codec AI in November 2024, expanding the company into
the social and influencer environment. Codec AI's intellectual property
profiles and maps social and influencer contexts to help brands target
advertising. Codec AI analyses influencer networks, followers, content and
behaviours to determine suitability for a brand's advertisements, like 4D AI
does for websites and video. The social and influencer advertising environment
covered by Codec AI provides Silverbullet with the opportunity to upsell to
brands on an additional advertising environment and is perfectly complementary
to our existing product and services suite.
Results
Revenue for the year was £9.37m (2023: £8.36m), driven primarily by growth
in our data-driven transformation services business, providing data
consultancy advice to numerous clients across the world. Loss before tax was
£3.04m (2023: £3.45m) leading to a loss per share of 17p (2023: 20p). Cash
as at 31 December 2024 was £0.28m (2023: £0.68m).
People.
I am privileged to lead an excellent Board of Directors for the Group.
The non-executive directors, Steven Clarke, AnnaMaria Khan-Rubalcaba and
Martyn Rattle provide a raft of industry insights and experience. Steven
Clarke and Anna Maria Khan-Rubalcaba sit on the audit and remuneration
committee as Chair and NED respectively with a focus on Board governance in
the privacy first era and on the adoption of AI into our own and client's
organisations.
During 2024, our three executive directors, Ian James, Chief Executive
Officer, Umberto Torrielli, Chief Strategy Officer and Chris Ells, Chief
Financial Officer showed true focus and commitment in leading the Group and
driving growth and successfully executing the agreed strategy of the business.
I would like to thank all of our employees across the globe for their
dedication, expertise, and commitment to generating significant growth and
delivering excellent work to all of our clients.
Overview.
In an environment where global clients are seeking innovative solutions to
data driven customer experience challenges, Silverbullet is perfectly placed
to deliver truly bespoke and agile solutions. The Company continues to benefit
from the technology, regulatory and consumer trends that are driving
enterprises to adopt cookieless advertising technologies and first-party data
infrastructure solutions. The company provides a market leading contextual
advertising software platform (4D AI) for brands to effectively target ads
without cookies and a full suite of global technology solutions centred on
first-party data. The success that the Group has achieved to date and the
significant historic investment in product, people and processes has put the
Company in an ideal position to continue to be successful and grow in the
future. The Board will continue to work with the executive and management
teams in 2025 to continue to develop and deliver on the strategy and to create
value for our shareholders.
Nigel Sharrocks
Non-Executive Chairman
30(th) June 2025
CEO Statement
I am delighted to report our Annual Accounts for 2024. For another year our
full year results show strong, sustained growth on the backdrop of a once in a
generation shift to data and AI driven marketing transformation. The demise of
a generation-old AdTech ecosystem which is based on non-compliant data sources
(such as the third-party cookies), continues to be rapidly replaced by a
first-party data driven, privacy-first marketing environment focused on
improving the customer experience.
2024 was another transformational year in the ongoing convergence of the
adtech and martech environment. Compliant privacy first data utilisation and
the adoption of Gen AI tools are now central to enhance customer insights and
ad targeting to drive marketing ROI. I am pleased to report that
Silverbullet remains perfectly positioned to help clients make that
opportunity a reality across their multiple markets and brands. Customer
journey optimization and the growing importance of social media content,
online video and CTV underpin the intersection between first party customer
data and contextually driven consumer advertising.
Over the course of 2024 Silverbullet has been engaged by multiple global
brands to implement and manage agile marketing data ecosystems - integrating
data, technology , AI and creativity to deliver connected, customer-centric
experiences to future-proof their marketing in a connected, contextual world.
This marketing and organisational transformation requires a combination of
innovative new enterprise technology and data platforms and human expertise to
implement and embed it.
Silverbullet has continually evolved its offering to meet this global client
demand for bespoke solutions rather than individual data and technology
products. By combining the proprietary data platforms of 4D AI and
Silverbullet Cloud with specialist skillsets in data strategy, technology
implementation, AI and data integration; Silverbullet provides a one-stop shop
for data driven marketing transformation and is proud to be trusted by some of
the world's biggest brands across the Globe.
Business Growth:
2024 Total Group revenue increased by 12% to £9.4m (FY23: £8.3m) and
revenue from 4D increased by 21% to £3.4m (FY23: £2.8m), with US and Global
clients now accounting for more than 57% of total Group revenue v 50% in
2023. The growth was characterised by some key objectives being achieved.
The business achieved an EBITDA positive revenue run rate in Q4, an increase
in the repeatable high margin 4D AI revenues,new global client wins and the
further consolidation of some key client relationships. These achievements
underpin the teams goal to build a strong base of long-term, contracted
repeatable revenue to drive higher margins and predictable growth.
During the year Silverbullet was awarded a significant contract with a
Global Confectionary brand and further consolidated our established position
with global clients with growth of 31% with the top 3 clients as scopes of
work and geographical expansion continue.
4D AI successfully integrated its data into The Trade Desk, a world leading
Demand side platform in Q4 2024 providing an opportunity for growth of high
margin data sales based on participating in TTD $9.6bn advertising spend.
Brands such as Progressive, Capital one, Coca Cola, P&G, Disney and US
Army all use 4D AI to target video and display ads either directly within the
4D Platform or through its 7 significant data integrations with global demand
and supply side partners, such as The Trade Desk, Microsoft, Open X and
Pubmatic.
The business maintains a lean approach to the cost base delivering only a
small increase of 2.9% year on year. As a result of the significant increase
in revenues and tightly managed cost base, Silverbullet has significantly
reduced losses for the year ended 31 December 2024, compared to the prior
year.
4D Highlights:
4D AI data platform is now available for brands and agencies to use in a
variety of ways, from "self-service" and private data marketplaces for
sophisticated media agencies, to a full managed service for those brands who
would prefer to outsource the execution of full insights, targeting and
measurement of campaigns.
Since inception, a key strategy to drive high margin data revenues for 4D AI
is to embed its proprietary data and technology into partner platforms who
have established market scale and client demand. Building on its successful
integrations in 2023 with OpenX Technologies, Inc., and PubMatic, Inc., two of
the world's leading independent supply-side platforms (SSPs) for audience,
data and identity led digital advertising targeting, in Q4 2024 4D
successfully integrated 4D into The Trade Desk (insert TTD details). In total
4D AI has 7 significant Global data integrations which provides the
opportunity to expand high margin data revenues via low touch self service
approach for clients. The integrations remove any "friction" in workflow for
targeting ads and using 4Ds proprietary AI driven context building tool and
optimization engine. 4D data only revenues have grown by 46% in 2024 v 2023
with zero increase in sales and marketing investment during the year.
This strong foundation is a key focus of 4D high margin low touch repeatable
revenue growth during 2025 and enhance the technological capabilities of the
proprietary platform. 4D will continue to pursue partnership integration and
reseller deals to continue growth with low operating cost increases in sales
and marketing.
Acquisition of Codec AI and extended Global enterprise platform relationships
During 2024, the Company successfully acquired Codec AI to extend 4D AI reach
into Social Media platforms for insights and content advertising
targeting. Codec AI is an award-winning AI-powered offering that specializes
in identifying, understanding, and activating high-value cultural communities
on social platforms such as Meta, Youtube and Tiktok to accelerate brand
growth. Recognized as the Best Artificial Intelligence Product in Marketing by
Cognition X and listed among the fifty most disruptive businesses in the UK by
Real Business, Codec AI has collaborated with leading brands such as Boots,
Universal Music, Adidas, Unilever, Mars Wrigley, and Diageo. Silverbullet
acquired certain intellectual property rights (IPR) from Spore London Limited
t/a Codec.AI (in administration) (Codec AI) for a cash consideration
of £50,000 payable in two tranches, plus an earnout of 10% of net revenues
generated from the technology up to 31 December 2025.
The acquisition of Codec AI's IPR provides significant opportunities to
Silverbullet's first party data services and will accelerate the Group's 4D
AI technology platform. The enhanced products will create clear upsell
opportunities to extend Silverbullet's products and services and extend the
established Silverbullet global client base.
The Company's strong enterprise marketing technology partner relationships
continue to grow, adding BlueConic a leading global CDP to its roster
partnerships alongside other key partners Salesforce and Gold partner status
with Treasure Data, the 2024 Gartner® Magic Quadrant™ for Customer Data
Platforms. In Q1 2025, in partnership with Blueconic, the company secured a
new $1.5m 2 year contract with a Global Fashion retail brand to act as its
Data Services and Customer Experience partner of record. These partnerships
alongside other broader data platforms such as Data Bricks and Snowflake
provide valuable early insights into the next Gen AI capabilities relating to
Silverbullets customers experience activities and provide ongoing pipeline of
new customers where Silverbullet plays the role as trusted, certified expert
services partner for scaled implementation, data integration and ongoing
managed client service.
Outlook.
The business is perfectly aligned to the market's need for first-party data
and privacy-first future.
Building on the strong growth foundations of 2024 the company is excited about
the opportunities presented by the market trends and growing customer demand
for its diverse range of data transformation products and services. 2025 has
started well giving the company confidence in delivering continued growth for
the year. Revenues in Q1 2025 were 15 per cent. higher than the prior
comparable period, at £2.31m
(unaudited) versus £2.1m, demonstrating a strong start to the year in what is
typically one of the slowest quarters in the calendar.
The Group is also pleased to announce that it has been awarded a significant
new contract with a well-known global retail brand, worth a minimum of US$1.5
million over two years, to provide a full data management and integration
programme. Under this engagement, Silverbullet will fulfil a strategic data
transformation role to develop a digital customer management and activation
programme aimed at driving customer growth, including data driven activities
through 4D AI and Codec as the programme is rolled out.
Furthermore, the Group has also signed two new contracts with global brands in
the beverage and FMCG sectors to implement new programmes using Silverbullet's
4D AI for digital advertising targeting, following its integration into the
clients' preferred global Demand Side Platform of choice, The Trade Desk.
These contracts give the Board further confidence in the trajectory of growth
for its higher-margin 4D AI data revenues, which have grown by 59% versus Q1
2024.
Taken together, these new contract wins contribute to committed services
revenues in FY 2025, representing approximately 74% of the full-year revenue
target by end of April demonstrating the Company's strong progress and ability
to attract and retain high-profile clients.
Overall being awarded new prestigious contracts and a strong start to the
year with current client contracts alongside the Company's continued global
growth and international footprint provides the Board with significant
confidence for our full year revenue targets and our continued focus on
driving high margin 4D AI revenues and long term repeatable contracts with
global clients.
Ian James,
CEO Silverbullet
FINANCIAL REVIEW
Year ended Year ended
December 2024 December 2023
£ £
Revenue 9,373,377 8,356,090
Cost of sales (2,244,508) (1,994,497)
Gross Profit 7,128,869 6,363,593
Personnel costs (5,854,686) (6,010,035)
Depreciation and amortisation (768,218) (836,403)
Other operating expenditure (2,881,519) (2,427,278)
Exceptional Items -
Operating Loss (2,375,554) (2,959,123)
Finance Expense (666,745) (488,653)
Loss before taxation (3,042,299) (3,447,776)
Tax 140,485 276,092
Loss after taxation (2,781,814) (3,171,684)
Currency translation differences 96,131 (48,874)
Total Comprehensive Loss for the year (2,685,683) (3,220,558)
Revenue and Gross Profit
Overall revenue of £9.4m represents growth of 12 per cent. compared to 2023.
During 2024, our customer experience services division continued to grow and
expand with revenue increasing by 8 per cent to £6.0m. Nine new clients
were added during the year and the company expanded its remit with our most
significant clients including Mars, Heineken and Greene King. The 4D division
continues to show significant momentum and revenues have increased by 20 per
cent in the year to £3.67m. The managed service 4D offering is the key
element that is driving this growth, with strong demand in the US for this
type of service. The self-service 4D offering continues to gain traction,
with increased take up from Global Media Agencies and direct client usage, and
we expect this to provide increasing contribution to revenues going forward
following the integration of 4D into The Trade Desk.
Gross profit of £7.13m represents growth of 12 per cent compared to 2023 and
gross profit margins remained consistent at 76% demonstrating strong operating
performance in both parts of the business.
Operating Expenditure
Total Adjusted Operating Expenditure (Adjusted to exclude depreciation,
amortisation, share option expenses, exceptional items) was £8.63m, which
represents an increase of 4.4% compared to 2023 (£8.27m).
Year ended Year ended
December 2024 December 2023
£ £
Operating Expenses 9,504,423 9,322,716
Less
Depreciation (21,981) (28,117)
Amortisation (746,237) (808,287)
Share option Charge (103,066) (217,921)
Adjusted Operating Expenses 8,633,139 8,268,391
Staff costs of £5.75m (excluding share option expenses) continue to make up
most of the operating expenses, and fell by 0.7 per cent. Compared to 2023
(£5.79m) reflecting a continued focus on growth with margin and operating
efficiency. By the end of 2024, the Company had 75 employees world-wide.
Other operating expenses increased by 16.1 per cent. to £2.88m from £2.48m
in 2023. This increase is driven almost exclusively by the use of external
contractors as against full time employees used in the delivery of services ,
particularly in the UK and Australia and underpins the delivery of significant
profitable revenue growth.
Taxation
As a loss-making Group, we do not currently incur corporation tax. We do
however benefit from a research and development tax relief related to the
continued development of 4D. The total tax relief for the prior year was
£0.14m.
Balance Sheet and cashflow
The development and investment in 4D AI, our privacy-first contextual
targeting and insights platform, has significantly reduced in 2024 due to the
product reaching development maturity. We have enhanced the product during
2024 and these costs £0.21m (2023 £0.23m) have been capitalised as an
intangible asset in the year. Goodwill relates to the acquisition of Silver
Bullet Data Services Limited and Videobeet Italia Srl. We have reviewed the
carrying value of these investments and we are comfortable that no impairment
is required against these assets.
• Net cash flow used in operating activities was £1.11m (2023:
£2.16m). The decrease versus the prior year relates to the reduction in
losses during the period.
• The Group's cash balance decreased by £0.4m to £0.28m at 31
December 2024 (2023: £0.68m).
Chris Ellis
Chief Financial Officer
30(th) June 2025
Consolidated statement of comprehensive income
As at 31 December 2024
Group
Note 2024 2023
Continuing operations £ £
Revenue 3, 4 9,373,377 8,358,090
Cost of sales (2,244,508) (1,994,497)
Gross profit 7,128,869 6,363,593
Personnel costs 7 (5,854,686) (6,010,035)
Depreciation and amortisation (768,218) (836,403)
Other operating expenditure (2,881,519) (2,476,278)
Operating (loss) 6 (2,375,554) (2,959,123)
Finance expense 9 (666,745) (488,653)
(Loss) before taxation (3,042,299) (3,447,776)
Taxation 10 140,485 276,092
(Loss) after taxation (2,901,814) (3,171,684)
Other comprehensive income / (loss) net of taxation
Currency translation differences 96,131 (48,874)
Total comprehensive (loss) for the year (2,805,683) (3,220,558)
Total comprehensive (loss) attributable to:
Equity shareholders of the company (2,805,592) (3,218,024)
Non-controlling interest (91) (2,534)
(2,805,683) (3,220,558)
(Loss) after taxation attributable to:
Equity shareholders of the company (2,901,723) (3,169,150)
Non-controlling interest (91) (2,534)
(2,901,814) (3,171,684)
Earnings per share
Basic earnings 25 (0.17) (0.20)
Diluted earnings 25 (0.17) (0.20)
Consolidated and company statement of financial position
Year ended 31 December 2024
Group Company
2024 2023 2024 2023
Note £ £ £ £
Non-current assets
Goodwill 11 4,349,662 4,349,662 - -
Intangible assets 11 1,425,837 1,963,343 - -
Investments 12 4,999 4,999 8,675,081 8,572,015
Tangible assets 13 32,049 35,269 - -
Total non-current assets 5,812,547 6,353,273 8,675,081 8,572,015
Current assets
Trade and other receivables 15 3,036,724 3,333,562 160,195 298,222
Cash and cash equivalents 16 275,491 677,855 63,331 152,477
Total current assets 3,312,215 4,011,417 223,526 450,699
Total Assets 9,124,762 10,364,690 8,898,607 9,022,714
Current liabilities
Trade and other payables 17 2,905,945 2,833,856 5,134,437 4,174,316
Loans and other borrowings 18 3,621,400 425,002 2,566,679 233,862
Total current liabilities 6,527,345 3,258,858 7,701,116 4,408,178
Non-current liabilities
Loans and borrowings 18 810,324 2,621,472 786,511 2,554,673
Deferred tax liability 19 335,324 487,991 - -
Total non-current liabilities 1,145,648 3,109,463 786,511 2,554,673
Total liabilities 7,672,993 6,368,321 8,487,627 6,962,851
Net assets 1,451,769 3,996,369 410,980 2,059,863
Equity
Share capital 21 174,649 173,908 174,649 173,908
Share premium 11,776,459 11,742,897 11,776,459 11,742,897
Share option reserve 22 2,305,268 2,433,195 2,305,268 2,433,195
Other reserves 23 575,146 451,432 575,146 451,432
Retained earnings (13,337,941) (10,667,211) (14,420,592) (12,741,619)
Capital redemption reserve 50 50 50 50
Foreign exchange reserve (45,484) (141,615) - -
Equity attributable to the equity shareholders of the company 1,448,147 3,992,656 410,980 2,059,863
Non-controlling interest 3,622 3,713 - -
Total equity 1,451,769 3,996,369 410,980 2,059,863
The loss for the company for the year was £1,909,966 (2023: £2,280,407). The
financial statement were approved by the Board for issue on 30 June 2025.
Ian
James
Company Number: 08525481
Chief Executive Officer
Consolidated statement of cash flows
Year ended 31 December 2024
Group Company
2024 2023 2024 2023
Note £ £ £ £
Cash flows from operating activities
(Loss) after tax from continuing operations (2,901,814) (3,171,684) (1,909,966) (2,280,410)
Adjustments for:
Depreciation 13 21,981 28,117 - -
Amortisation 11 746,237 808,287 - -
Impairments 24 - - 1,063,172 1,156,223
Finance expense 9 666,745 488,653 556,883 450,033
Share option charge 22 103,066 217,921 - -
Taxation credit 10 (140,485) (276,092) - -
(Increase) in trade and other receivables 15 240,043 (863,438) 81,232 (30,368)
(Decrease) / increase in trade and other payables 17 165,031 397,385 77,950 269,897
Increase / (decrease) in deferred tax liability 19 (152,667) (144,199) - -
Cash used in operations (1,251,863) (2,515,050) (130,729) (434,625)
Taxation refunded 143,675 351,936 - -
Net cash used in operating activities (1,108,188) (2,163,114) (130,729) (434,625)
Cash flows from investing activities
Purchase of tangible assets 13 (18,761) (9,577) - -
Purchase of intangible assets 11 (208,731) (226,891) - -
Net cash used in investing activities (227,492) (236,468) - -
Cash flows from financing activities
Proceeds from borrowings 18 1,397,834 1,387,073 283,186 1,186,339
Repayment of borrowings 18 (427,915) (546,795) (133,862) (452,478)
New equity issued (net of transaction costs) 21 91,098 954,137 91,098 954,137
Intercompany advances - - (180,999) (1,078,889)
Interest paid (127,701) (69,199) (17,840) (30,579)
Net cash from financing activities 933,316 1,725,216 41,583 578,530
Net increase / (decrease) in cash and cash equivalents (402,364) (674,366) (89,146) 143,905
Cash and cash equivalents at beginning of period 677,855 1,352,221 152,477 8,572
Cash and cash equivalents at end of period 275,491 677,855 63,331 152,477
Consolidated statement of changes in equity attributable to the shareholders
Year ended 31 December 2024
Group
Share Capital Share premium Share Option Reserve Other reserves Retained earnings Capital redemption reserve Foreign exchange reserve Total equity attributable to shareholders Non-controlling interest Total equity
£ £ £ £ £ £ £ £ £ £
As at 1 January 2023 159,367 10,821,021 2,396,396 398,954 (7,679,183) 50 (92,741) 6,003,864 6,247 6,010,111
Total comprehensive loss for the year - - - - (3,169,150) - (48,874) (3,218,024) (2,534) (3,220,558)
Convertible loan notes issued - - - 52,478 - - - 52,478 - 52,478
Share option charge - - 217,921 - - - - 217,921 - 217,921
Share option exercised 255 - (65,316) - 65,316 - - 255 - 255
Share options lapsed - - (115,806) - 115,806 - - - - -
Shares issued during period (net of transaction costs) 14,286 921,876 - - - - - 936,162 - 936,162
As at 31 December 2023 173,908 11,742,897 2,433,195 451,432 (10,667,211) 50 (141,615) 3,992,656 3,713 3,996,369
Total comprehensive loss for the year - - - - (2,901,723) - 96,131 (2,805,592) (91) (2,805,683)
Convertible loan notes issued - - - 123,714 - - - 123,714 - 123,714
Share option charge - - 103,066 - - - - 103,066 - 103,066
Share option exercised 741 33,562 (127,183) - 127,183 - - 34,303 - 34,303
Share options lapsed - - (103,810) - 103,810 - - - - -
As at 31 December 2024 174,649 11,776,459 2,305,268 575,146 (13,337,941) 50 (45,484) 1,448,147 3,622 1,451,769
Company
Share Capital Share premium Share Option Reserve Other reserves Retained earnings Capital redemption reserve Total equity
£ £ £ £ £ £ £
As at 1 January 2023 159,367 10,821,021 2,396,396 398,954 (10,642,334) 50 3,133,454
Total comprehensive loss for the year - - - - (2,280,407) - (2,280,407)
Convertible loan notes issued - - - 52,478 - - 52,478
Share option charge - - 217,921 - - - 217,921
Share options exercised 255 - (65,316) - 65,316 - 255
Share options lapsed - - (115,806) - 115,806 - -
Shares issued during period (net of transaction costs) 14,286 921,876 - - - - 936,162
As at 31 December 2023 173,908 11,742,897 2,433,195 451,432 (12,741,619) 50 2,059,863
Total comprehensive loss for the year - - - - (1,909,966) - (1,909,966)
Convertible loan notes issued - - - 123,714 - - 123,714
Share option charge - - 103,066 - - - 103,066
Share options exercised 741 33,562 (127,183) - 127,183 - 34,303
Share options lapsed - - (103,810) - 103,810 - -
As at 31 December 2024 174,649 11,776,459 2,305,268 575,146 (14,420,592) 50 410,980
Notes to the financial statements
1. Description of business, basis of preparation and going concern
GENERAL INFORMATION
Silver Bullet Data Services Group PLC ("SBDS") was incorporated on 13 May
2013. SBDS is a public limited company incorporated in England and Wales and
domiciled in the UK. The address of the registered office is The Harley
Building, 77 New Cavendish Street, London, England, W1W 6XB.
SBDS is the ultimate parent company to the subsidiaries listed at Note 14,
together referred to as "the Group". The principal activity of the SBDS Group
is marketing services through the application of big data technologies to
reduce friction.
Silver Bullet Data Services Group PLC is registered with Companies House
(Company Number: 08525481).
BASIS OF PREPARATION
These financial statements have been prepared in accordance with UK-adopted
International Accounting Standards, interpretations issued by the
International Financial Reporting Standards Interpretations Committee
("IFRIC"), and the Companies Act 2006. The accounting policies have been
applied consistently throughout the period.
The Company has taken advantage of the exemption under S408 of the Companies
Act 2006 not to include a separate Statement of Comprehensive Income as group
statements have been prepared.
The consolidated financial statements have been prepared under the historical
cost convention. Historical cost is generally based on the fair value of the
consideration given in exchange for assets.
The presentational currency of the Group is GBP with functional currencies of
the subsidiaries disclosed at Note 14 being GBP, EUR, AUD, and USD.
GOING CONCERN
The directors have prepared detailed budgets and forecasts covering the period
to 31 December 2026 which are based on the strategic business plan. These take
into account all reasonably foreseeable circumstances and include
consideration of trading results, cash flows and the level of facilities the
group requires on a month-by-month basis.
The convertible loan notes included within current liabilities (see Note 18)
were refinanced through the issue of new loan notes, convertible loan notes
and the issue of new ordinary shares. See the post balance sheet event
commented on at Note 27.
Based on their enquiries and the information available to them and taking into
account the other risks and uncertainties set out herein, the directors have a
reasonable expectation that the company and the group has adequate resources
to continue operating for the foreseeable future. Thus, they continue to adopt
the going concern basis of accounting in preparing this financial information.
The financial statements do not include adjustments that would arise in the
event the group is not a going concern.
2. Material accounting policies
REVENUE RECOGNITION
IFRS 15 - Revenue from Contracts with Customers has been applied for all
periods presented within the financial statements. The timing of all revenue
recognised by the Group during the reporting period was satisfied over time in
accordance with IFRS 15 recognition criteria. None of the Group's activities
result in the transfer of control of a product at a point in time for revenue
recognition purposes.
During the period under review the Group recognised revenue from the following
activities:
Customer Experience Services
Revenue relating to service contracts is invoiced according to milestones
defined within each contract, the terms of which vary on a case-by-case basis.
In all cases the revenue is recognised in line with the provision of the
services or, where the quantum and timing of the services cannot be reliably
predicted, rateable over the period of the agreement.
Invoices against services contracts are raised on a monthly basis with
adjustments for accrued or deferred income where the agreed invoicing
timescale does not match the valuation of provision of services.
4D contextual targeting and insights platform
Amounts received or receivable for campaigns, typically invoiced on a monthly
basis, recognise revenue in proportion to the quantum of advertising units
delivered according to the contracted service. Units and metrics deliverable
under each contracted services will vary on a case-by-case basis.
Contract liabilities
Contract liabilities are recognised when payment from a customer is received
in advance of performance obligations being satisfied. Contract liabilities
are recognised in trade and other payables.
Contract assets
Contract assets are recognised when revenue is recognised but payment is
conditional on a basis other than the passage of time. Contract assets are
included in trade and other receivables.
BUSINESS COMBINATIONS
Silver Bullet Data Services Group PLC applies the acquisition method of
accounting to account for business combinations in accordance with IFRS 3,
'Business Combinations'.
The consideration transferred for the acquisition of a subsidiary is the fair
values of the assets transferred, the liabilities incurred and the equity
interests issued by Silver Bullet Data Services Group PLC. The consideration
transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired and
liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. The excess of
the consideration transferred over the fair value of Silver Bullet Data
Services Group PLC's share of the identifiable net assets acquired is recorded
as goodwill. All transaction-related costs are expensed in the period they are
incurred as exceptional operating expenses.
TAXES
Corporation tax, where payable, is provided on taxable profits at the current
rate.
Deferred tax is provided on all temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax assets are recognised for all deductible temporary differences,
carry-forward of unused tax assets and unused tax losses, to the extent that
it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry-forward of unused tax assets
and unused tax losses can be utilised. The carrying amount of deferred tax
assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax
liabilities, and when the deferred tax assets and liabilities relate to taxes
levied by the same taxation authority on either the taxable entity or
different taxable entities where there is an intention to settle the balances
on a net basis.
Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply to the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
FOREIGN CURRENCY TRANSLATION
Transactions in currencies other than the functional currency (foreign
currencies) are initially recorded at the exchange rate prevailing on the date
of the transaction.
Monetary assets and liabilities denominated in foreign currencies are
translated at the rate of exchange ruling at the reporting date. Non-monetary
assets and liabilities denominated in foreign currencies are translated at the
rate ruling at the date of the transaction.
All translation differences are taken to profit or loss, except to the extent
that they relate to gains or losses on non-monetary items recognised in other
comprehensive income, when the related translation gain or loss is also
recognised in other comprehensive income.
Subsidiaries using a functional currency other than the presentation currency
of the group are retranslated at each period end. Any translation differences
are held within the group foreign exchange reserve.
INTANGIBLE ASSETS AND GOODWILL
Goodwill
Goodwill is initially measured as the excess of the aggregate of the
consideration transferred over the fair value of the net assets acquired, and
any previous interest held over the net identifiable assets acquired and
liabilities assumed. After initial recognition, goodwill is measured at cost
less any accumulated impairment losses. The goodwill is tested annually for
impairment irrespective of whether there is an indication of impairment.
For the purposes of impairment testing, goodwill is allocated to the
cash-generating units expected to benefit from the acquisition.
Cash-generating units to which goodwill has been allocated are tested for
impairment at least annually, or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the
cash-generating unit is less than the carrying amount of the unit, the
impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other assets of the unit
pro-rata on the basis of the carrying amount of each asset in the unit.
Intangible assets (other than goodwill)
Intangible assets acquired separately from a business combination are
recognised at cost and are subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Intangible assets acquired on
business combinations are recognised separately from goodwill at the
acquisition date if the fair value can be measured reliably.
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:
Development costs
- Straight line basis over 5 years
Customer
lists
- Straight line basis over 4 years
PROPERTY PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost net of accumulated
depreciation and accumulated impairment losses. Cost comprises purchase cost
together with any incidental costs of acquisition.
Depreciation is provided to write down the cost less the estimated residual
value of all tangible fixed assets by equal instalments over their estimated
useful economic lives on a straight-line basis. The following rates are
applied:
Computer equipment
- Straight line over 3 years
Fixtures, fittings and equipment
- Reducing balance over 4 years
INVESTMENTS
All investments are accounted for at cost and reviewed for impairment at each
reporting period end date. Where share options are issued to employees of
subsidiary companies this is treated as a capital contribution in the
subsidiary with a corresponding increase in the cost of investment in the
parent company.
IMPAIRMENT OF NON-CURRENT ASSETS
At each reporting period end date, the Group reviews the carrying amounts of
its tangible and intangible 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). Where it is not
possible to estimate the recoverable amount of an individual asset, the
company estimates the recoverable amount of the cash-generating unit to which
the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its
carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. An impairment loss is recognised immediately in the
statement of comprehensive income.
Recognised impairment losses are reversed if, and only if, the reasons for the
impairment loss have ceased to apply. Where an impairment loss subsequently
reverses, the carrying amount of the asset (or cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for the asset (or
cash-generating unit) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.
RESEARCH AND DEVELOPMENT EXPENDITURE
Research expenditure is written off against profits in the year in which it is
incurred. Identifiable development expenditure is capitalised to the extent
that the technical, commercial and financial feasibility can be demonstrated.
Development costs relate to the 4D Platform developed internally by the group
which are continuing to generate revenue streams.
FINANCIAL INSTRUMENTS
Silver Bullet Data Services Group PLC classifies financial instruments, or
their component parts, on initial recognition as a financial asset, a
financial liability or an equity instrument in accordance with the substance
of the contractual arrangement. Financial instruments are recognised on the
date when the Group becomes a party to the contractual provisions of the
instrument. Financial instruments are recognised initially at fair value plus,
in the case of a financial instrument not a fair value through profit and
loss, transaction costs that are directly attributable to the acquisition or
issue of the financial instrument. Financial instruments are derecognised on
the settlement date when the Group is no longer a party to the contractual
provisions of the instrument.
Non-derivative financial instruments comprise trade and
other receivables, cash and cash equivalents, loans and borrowings, and trade
and other payables.
Trade and other receivables and trade and other payables
Trade and other receivables are recognised initially at transaction price less
attributable transaction costs. Trade and other payables are recognised
initially at transaction price plus attributable transaction costs. Subsequent
to initial recognition they are measured at amortised cost using the effective
interest method, less any expected credit losses in the case of trade
receivables. Impairments of the trade receivable balances are based on a
review of individual receivable balances, their ageing and management's
assessment of realisation.
If the arrangement constitutes a financing transaction, for example if payment
is deferred beyond normal business terms, then it is measured at the present
value of future payments discounted at a market rate of interest for a similar
debt instrument.
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at the present value of
future payments discounted at a market rate of interest. Subsequent to initial
recognition, interest-bearing borrowings are stated at amortised costs using
the effective interest method.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank
overdrafts that are repayable on demand form an integral part of the Group's
cash management and are included as a component of cash and cash equivalents
for the purpose only on the cash flow statement.
EMPLOYEE BENEFITS
During the period the Group operated a defined contribution money purchase
pension scheme under which it pays contributions based upon a percentage of
the members' basic salary. The Group also paid other employee benefits
including medical insurance.
All employee benefits are charged to the Statement of Comprehensive Income and
differences between contributions payable in the year and contributions
actually paid are shown as either accruals or prepayments.
LEASES
The Group leases a number of properties in various locations in Europe,
Australia, USA, and the UK from which it operates.
All leases are accounted for by recognising a right-of-use asset and a lease
liability except for:
- Leases of assets below £1,000; and
- Leases with a duration of twelve months or less.
All leases signed by the Group during the reporting period were for a period
of less than twelve months so no right-of-use assets have been recognised.
GRANT INCOME
Grant income is recognised where there is reasonable assurance that the grant
will be received, and all attached conditions will be complied with. When the
grant relates to an expense item, it is recognised as income on a systematic
basis over the periods that the related costs, for which it is intended to
compensate, are expensed. When the grant relates to an asset, it is recognised
as income in equal amounts over the expected useful life of the related asset.
SHARE-BASED PAYMENTS
The Group operates a share option programme which allows employees of the
subsidiary companies to be granted options to purchase shares in this company.
The fair value of options granted is recognised as an employment expense in
the corresponding subsidiary company. The Group recognises a corresponding
increase in subsidiary investment value and equity to recognise the capital
contribution made for share option charges.
The fair value of the options is measured at the grant date and spread over
the vesting period. The fair value is measured based on an option pricing
model taking into account the terms and conditions upon which the instruments
were granted.
Vesting periods in each share option agreement vary from vesting immediately
on grant date to vesting over a period of four years.
FINANCE INCOME AND EXPENSES
Finance expenses comprise interest payable recognised in the statement of
comprehensive income using the effective interest method.
Interest income and interest payable are recognised in the statement of
comprehensive income as they accrue, using the effective interest method.
ADOPTION OF NEW AND REVISED STANDARDS
The following standards and interpretations relevant to the Group are in issue
but are not yet effective and have not been applied in the financial
statements. In some cases these standards and guidance have not been endorsed
for use in the United Kingdom.
· Amendments to IAS 21 Lack of exchangeability;
· Amendments IFRS 9 and IFRS 7 regarding the classification and
measurement of financial instruments;
· IFRS 18 - Presentation and Disclosure in Financial Statements;
and
· IFRS 19 - Subsidiaries without Public Accountability: Disclosures
The above standards are not expected to materially impact the Group.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of these financial statements requires the Directors to make
estimates and judgements that affect the reported amounts of assets,
liabilities, costs and revenue in the financial statements. Actual results
could differ from these estimates. The judgements, estimates and associated
assumptions are based on historical experience and other factors that are
considered to be relevant.
Key sources of estimation uncertainty that could cause an adjustment to be
required to the carrying amount of assets or liabilities within the next
accounting period are:
Critical accounting estimates:
Impairment of intangible fixed assets
Impairment tests have been undertaken in respect of goodwill and intangible
fixed assets using an assessment of the value in use of the respective cash
generating units (CGUs). This assessment requires a number of assumptions and
estimates to be made including the allocation of assets to CGUs, the expected
future cash flows from each CGU and also the selection of a suitable discount
rate in order to calculate the present value of those cash flows. Impairments
of intangible assets are explained in more detail at note 11.
Critical accounting judgements:
Amortisation
The assessment of the useful economic lives, residual values and the method of
depreciating or amortising intangible (excluding goodwill) fixed assets
requires judgement. Amortisation is charged to profit or loss based on the
useful economic life selected, which requires an estimation of the period and
profile over which the group expects to consume the future economic benefits
embodied in the assets. Useful economic lives and residual values are
re-assessed, and amended as necessary, when changes in their circumstances are
identified.
Capitalised development costs
Development costs incurred in building the Group's key platform for future
expansion have been capitalised in accordance with the requirements of IAS38.
The majority of these costs consist of salary expenses to which an estimated
proportion of development time has been applied.
Convertible loan notes
The equity portion of the convertible loan notes have been valued using the
Black-Scholes model. This gives equivalent discount rates on the liability
components ranging from 14% to 21%. The directors consider this rate to be an
approximation of the rate on a similar loan without the conversion feature.
The directors consider this method is used as a practical measure to estimate
the value of the debt.
As highlighted at Note 27, the group were successful in refinancing current
liabilities on 23(rd) June 2025 with the issue of new loan notes, convertible
loan notes, and new ordinary shares.
3. Operating segments
IFRS 8 requires that operating segments be identified on the basis of internal
reporting and decision-making. The Board of Directors is the chief operating
decision maker for the Group.
The Group has two business segments outlined below. The business analyses
these streams by revenue and gross profit. Overheads, assets and liabilities
are not separately allocated across the business streams.
The business monitors operating segments using gross profit as the key
measurement. Group profitability is measured using earnings before interest,
tax, depreciation and amortisation (EBITDA) which is used to represent
operating cashflow generated by the business.
2024 2023
Revenue Gross profit Revenue Gross profit
£ £ £ £
Customer Experience Services 6,002,400 5,966,373 5,551,586 5,314,225
4D Platform 3,370,977 1,162,496 2,806,504 1,049,368
Total 9,373,377 7,128,869 8,358,090 6,363,593
EBITDA from continuing operations
Operating (loss) (2,375,554) (2,959,123)
Depreciation and amortisation 768,218 836,403
Total (1,607,336) (2,122,720)
4. Geographical analysis
Revenue analysed by geographical market:
2024 2023
£ £
United Kingdom 1,691,027 2,126,778
Rest of Europe 1,423,622 1,158,692
United States of America 4,385,743 3,087,433
Rest of the world 1,872,985 1,985,187
9,373,377 8,358,090
The timing of all revenue recognised by the Group during the reporting period
was satisfied over time in accordance with IFRS 15 recognition criteria. None
of the Group's activities result in the transfer of control of a product at a
point in time for revenue recognition purposes.
Three major customers are included within revenue totalling £5,122,157
representing 12%, 19%, and 24% of total group revenue respectively (2023:
three major customer totalling £3,805,304 representing 13%, 16% and 17%).
Non-current assets analysed by geographical market:
2024 2023
£ £
United Kingdom 5,786,845 6,334,584
Rest of Europe 6,305 -
United States of America 8,273 6,778
Rest of the world 11,123 11,911
5,812,546 6,353,273
5. Headline loss before tax
Reported loss before tax for the group is reconciled to the
headline loss before tax below. This figure is a non-GAAP measure used for
internal purposes and may not be comparable to other non-GAAP measures.
Group
2024 2023
£ £
Reported (loss) before tax (3,042,299) (3,447,776)
Share option charges 103,066 217,921
Headline (loss) before tax (2,939,233) (3,229,855)
6. Operating (loss)
The operating loss is arrived at after charging:
Group
2024 2023
£ £
Depreciation of property plant and equipment 21,981 28,117
Amortisation of intangible assets 746,237 808,287
Short-term leases 242,728 259,330
Foreign exchange losses 7,638 83,763
Auditor's remuneration in respect of:
- audit of the consolidated financial statements 87,120 79,200
- other audit related assurance services 2,500 2,500
7. Staff costs
Group
2024 2023
£ £
Wages and salaries 5,010,804 5,006,201
Share-based payments 103,066 217,921
Social security costs 466,068 497,419
Pension costs - defined contribution 274,748 260,639
Termination payments - 27,855
5,854,686 6,010,035
Average number of staff
Group Company
2024 2023 2024 2023
Customer Experience Services 35 36 - -
4D Platform 16 23 - -
Central 11 9 - -
62 68 - -
8. Directors' remuneration
Key management personnel are considered to be the directors
and their remuneration, employer's national insurance, and pension
contributions are disclosed below:
Group
2024 2023
£ £
Directors' remuneration 759,587 691,728
Share-based payments 48,907 175,773
Social security costs 70,823 67,520
Pension costs - defined contribution 20,719 20,533
900,036 955,554
The directors are remunerated, in respect of their services to the Group,
through subsidiary companies. During the year four directors (2023: three)
were accruing benefits under the company defined contribution pension scheme.
Remuneration disclosed above includes the following amounts paid to the
highest paid director:
Group
2024 2023
£ £
Directors' remuneration 246,519 225,000
Share-based payments 15,062 71,552
Social security costs 8,180 28,243
Pension costs - defined contribution 8,139 6,750
9. Finance expenses
Group
2024 2023
£ £
On convertible loan notes 536,228 419,455
On bank loans 130,517 69,198
666,745 488,653
10. Income tax provision
A deferred tax asset in respect of the Group's losses to
date has not been recognised due to the uncertainty of the timing of future
loss relief.
Group
2024 2023
Current tax £ £
UK corporation tax charge from prior periods - 698
UK corporation tax charge/(credit) for R&D from prior years - 8,064
UK corporation tax credits for R&D for current year - (143,676)
Foreign taxation 12,182 3,021
Total current tax 12,182 (131,893)
Deferred tax (152,667) (144,199)
Total tax credit (140,485) (276,092)
Reconciliation of tax expense
The tax assessed on the loss on ordinary activities for the year is lower than
the standard rate of corporation tax in the UK of 25% (2023: 25%).
Group
2024 2023
£ £
Loss on ordinary activities before taxation (3,042,299) (3,447,777)
Loss on ordinary activities by rate of tax (760,575) (861,944)
Non-allowable expenses 145,962 158,917
Enhanced R&D expenditure - (143,676)
Deferred tax movement on intangible assets (152,667) (144,199)
Movement in deferred tax not recognised 614,613 703,028
Adjustments in respect of prior periods - 8,762
Foreign taxation 12,182 3,021
Tax on loss (140,485) (276,092)
Deferred tax assets have not been recognised on cumulative losses for the
group totalling £47,717,470 (2023: £43,151,563).
11. Goodwill and intangible assets
Customer lists Development Costs Goodwill Total
£ £ £ £
COST
At 1 January 2023 595,708 3,597,066 4,349,662 8,542,436
Additions - 226,891 - 226,891
At 31 December 2023 595,708 3,823,957 4,349,662 8,769,327
At 1 January 2024 595,708 3,823,957 4,349,662 8,769,327
Additions - 208,731 - 208,731
At 31 December 2024 595,708 4,032,688 4,349,662 8,978,058
AMORTISATION
At 1 January 2023 511,717 1,136,318 - 1,648,035
Amortisation charge 83,991 724,296 - 808,287
At 31 December 2023 595,708 1,860,614 - 2,456,322
At 1 January 2024 595,708 1,860,614 - 2,456,322
Amortisation charge - 746,237 - 746,237
At 31 December 2024 595,708 2,606,851 - 3,202,559
NET BOOK VALUE
At 31 December 2023 - 1,963,343 4,349,662 6,313,005
At 31 December 2024 - 1,425,837 4,349,662 5,775,499
Cash Generating Unit (CGU) impairment reviews
The Group has identified two CGUs: Customer Experience Services and 4D
Platform (as reported in Note 3). The intangible assets are allocated to these
CGUs as follows:
Goodwill Development costs Total
Customer Experience Services 3,076,826 - 3,076,826
4D Platform 1,272,836 1,425,837 2,698,673
4,349,662 1,425,837 5,775,499
1. Customer Experience Services
The key assumptions for the value in use calculation are considered separately
below.
Number of years of cash flows used and budgeted growth rate
The recoverable amount is based on a value in use calculation using specific
cash flow projections over a five-year period with a growth rate of 2% for a
further 3 years. The five-year forecast is prepared considering the directors'
expectations based on market knowledge, numbers of new engagements and the
pipeline of opportunities.
Discount rate
The Group's pre-tax weighted average cost of capital has been used to
calculate a discount rate, which reflects current market assessments of the
time value of money for the period under review and the risks specific to the
Group. A discount rate of 18% was applied for each of the periods under
review.
Future growth rate
An appropriate growth rate is selected, based on the directors' expectations
of growth beyond the budgeted period. The growth rate used for the period
following the detailed forecast period is 5%, which is within the expected
growth for the industry.
The discounted cashflows expected compares to the carrying value as follows:
Net Book Value Recoverable Amount Impairment Headroom
As at 31 December 2023 3,076,826 8,732,408 5,655,582
As at 31 December 2024 3,076,826 11,649,609 8,572,783
Sensitivity analysis has been conducted on each of management's key
assumptions to assess the volatility of the impairment head room against the
Group's Cash Generating Units.
A discount factor of 18% has been applied by management in order to calculate
the net present value of each CGUs recoverable amount. This discount factor is
an estimate of the Group's cost of capital based on the capital asset pricing
model using the beta value from similar listed businesses. Increasing this
discount factor to 50% does not result in any impairment being required.
Management have used a sales pipeline to assess likely revenue for the
proceeding three years, with a medium-term sales growth rate at 5% for three
financial years with a growth rate forecast at 2% for years 2030 to 2032.
Sensitivity analysis on these revenue estimates show that a reduction in
forecast revenue of 20% would not result in any impairment.
For the purposes of reviewing goodwill impairments, the tangible fixed assets
acquired in business combinations are not considered to be material.
2. 4D Platform
The carrying value of amortised intangible assets and the key assumptions used
in performing the annual impairment assessment and sensitivities are disclosed
below:
Net Book Value Recoverable Amount Impairment Headroom
£ £ £
As at 31 December 2023 3,236,179 4,066,574 830,395
As at 31 December 2024 2,698,673 4,922,748 2,224,075
The key assumptions applied by management in assessing these recoverable
amounts are:
- a discount rate of 18% to calculate the present value of future
cashflows;
- revenue growth of 51% over the two-year period to 31 December 2026.
Sensitivity analysis has been conducted on these management assumptions to
show that an increased discount rate of 35% would not result in any
impairments being recognised.
Cashflow forecasts used in this analysis have been prepared by management
based on best estimates of future activity and expected profit margins.
Reduction of future revenue streams by a factor of 12% would not result in any
impairment without considering any cost control measures.
12. Investments
All investments held by the group relate to investments in
trading companies as detailed in Note 14.
COST Group Company
At 1 January 2023 4,999 8,354,094
Additions - 217,921
At 31 December 2023 4,999 8,572,015
At 1 January 2024 4,999 8,572,015
Additions - 103,066
At 31 December 2024 4,999 8,675,081
Impairment review of investments
Using the assumptions applied in reviewing intangible assets for impairment
(see Note 11) the Company's investments in subsidiaries have also been
compared to the discounted future cashflows expected from the subsidiary CGUs.
At the period end no impairment charges (2023: £nil) were necessary given the
headroom below:
Net Book Value Recoverable Amount Impairment Headroom
As at 31 December 2023 £ £ £
Investments in subsidiaries 8,572,015 12,798,982 4,226,967
8,572,015 12,798,982 4,226,967
As at 31 December 2024
Investments in subsidiaries 8,675,081 16,572,357 7,897,276
8,675,081 16,572,357 7,897,276
13. Tangible assets
Fixtures, fittings and equipment Computer equipment Total
£ £ £
COST
At 1 January 2023 20,111 171,814 191,925
Additions 471 9,106 9,577
At 31 December 2023 20,582 180,920 201,502
At 1 January 2024 20,582 180,920 201,502
Additions 1,043 17,718 18,761
At 31 December 2024 21,625 198,638 220,263
DEPRECIATION
At 1 January 2023 9,210 128,906 138,116
Charge for the period 4,868 23,249 28,117
At 31 December 2023 14,078 152,155 166,233
At 1 January 2024 14,078 152,155 166,233
Charge for the period 1,937 20,044 21,981
At 31 December 2024 16,015 172,199 188,214
NET BOOK VALUE
At 31 December 2023 6,504 28,765 35,269
At 31 December 2024 5,610 26,439 32,049
14. Investments in subsidiaries
As at 31 December 2024 Silver Bullet Data Services Group PLC owned an interest
in the ordinary share capital of the companies below.
All companies are 100% owned with the exceptions of Local Planet Data Services
Ltd (51% owned) and Silver Bullet Data Science Limited (49.99% owned).
Silver Bullet Data Science Limited has not been consolidated into these
financial statements as the Group does not exercise control over the company's
activities.
During the period steps were taken to close and liquidate the
German-registered subsidiary Silver Bullet Data Services GmbH which is
expected to be completed during 2025.
Subsidiary undertaking Country of incorporation Registered office Principal activity
Silver Bullet Media Services Limited England and Wales The Harley Building, 77 New Cavendish Street, London, W1W 6XB Marketing services and data technologies
IOTEC Native Limited England and Wales The Harley Building, 77 New Cavendish Street, London, W1W 6XB Dormant
Silver Bullet Data Services Limited England and Wales The Harley Building, 77 New Cavendish Street, London, W1W 6XB Marketing services and data technologies
Silver Bullet Data Services GmbH Germany Herzogspitalstraße 24, 80331, Munich Marketing services and data technologies
Silver Bullet Data Services Pty Ltd Australia 452 Flinders St, Melbounre, 3000, Victoria Marketing services and data technologies
Silver Bullet Data Services S.r.l (Previously Videobeet Italia S.r.l.) Italy 20161, Via Gian Rinaldo, Carli n. 47, Milan Marketing services and data technologies
Technobeet S.r.l. Italy 20161, Via Gian Rinaldo, Carli n. 47, Milan Dormant
Silver Bullet USA Inc. United States of America 1250 Broadway, 36th Floor, New York, New York, 10001 Marketing services and data technologies
Local Planet Data Services Ltd England and Wales The Harley Building, 77 New Cavendish Street, London, W1W 6XB Marketing services and data technologies
Silver Bullet AI Limited England and Wales The Harley Building, 77 New Cavendish Street, London, W1W 6XB Marketing services and data technologies
15. Trade and other receivables
Group Company
2024 2023 2024 2023
£ £ £ £
Trade receivables 2,276,950 2,202,850 - -
Other receivables 537,874 440,560 155,401 177,827
Prepayments 94,075 249,292 4,794 120,395
Contract assets 127,825 297,184 - -
Corporation tax receivable - 143,676 - -
3,036,724 3,333,562 160,195 298,222
In determining the recoverability of accounts receivable, the Group considers
any changes in the credit quality of the accounts receivable from the date
credit was initially granted up to the reporting date.
Those receivable balances that are passed due have been assessed by management
on an individual basis and provisions for bad debts has been made as
necessary.
Contract assets represent agreements with customers against which revenue has
been recognised but not yet invoiced in accordance with the contract terms.
All contract assets at each period end has been invoiced within a maximum of
three months of the end of the reporting period.
16. Cash and cash equivalents
Group Company
2024 2023 2024 2023
£ £ £ £
Cash at bank 275,491 677,855 63,331 152,477
275,491 677,855 63,331 152,477
Cash at bank earns interest at floating rates based on daily bank deposit
rates. Bank interest received is not material.
17. Trade and other payables
Group Company
2024 2023 2024 2023
£ £ £ £
Trade payables 1,086,222 1,221,776 37,315 166,823
Tax and social security 804,784 551,163 - 21,027
Other payables 412,292 339,670 10,051 10,051
Accruals 421,062 516,847 79,484 1,464
Contract liabilities 181,585 204,400 - -
Amounts owed to group undertakings - - 5,007,587 3,974,951
2,905,945 2,833,856 5,134,437 4,174,316
The fair value of trade and other payables approximates to book value at each
year-end. Trade payables are non-interest bearing and are normally settled
monthly.
Contract liabilities represent agreements with customers against which revenue
has not yet been recognised for payments that have been received in advance
during the report period. All such contract liabilities at each period end has
been released to the Statement of Comprehensive Income within a maximum of
three months of the end of the reporting period.
18. Loans and borrowings
Group Company
2024 2023 2024 2023
£ £ £ £
Current liabilities
Convertible loan notes 2,366,679 - 2,366,679 -
Bank loans 1,054,721 75,002 - 33,862
Term loans 200,000 350,000 200,000 200,000
3,621,400 425,002 2,566,679 233,862
Non-current liabilities
Convertible loan notes 786,511 2,554,672 786,511 2,554,673
Bank loans 23,813 66,800 - -
810,324 2,621,472 786,511 2,554,673
At 31 December 2024 the Group had three bank loans totalling £1,078,534
(2023: £141,801). One loan accrues interest at 1.95% repayable over six years
to 2026. Other loan balances represent invoice discounting facilities
repayable monthly with effective annual interest accruing at a rate of 11.2%.
At 31 December 2024 the group had one short-term loan facilities totalling
£200,000 (2023: two at £350,000). The loan is lent without security and
accrues interest at a rate of 12%.
Convertible loan notes are in issue which are convertible by the option holder
into new ordinary shares at any point during the three-year term of the loan,
the latest of which expires on 28 February 2027. Conversion prices are fixed
at £1.10 for the June 2022 convertible loan note instruments and £0.50 for
convertible loan note instruments issued since May 2023.
The loan notes attract interest at a rate of 12% per annum, which is payable
commencing on the date of issue either:
i) at the Company's option of 8% per annum paid monthly plus
4% payable via the issue of additional Convertible Loan Notes as payment in
kind.
ii) 12% payable via the issue of additional Convertible Loan
Notes as payment in kind.
The loan notes may be redeemed in cash at the option of company at any point
at a premium equal to 15% of the principal amount of the Notes.
The equity element of the convertible loan note is recognised within other
reserves (see Note 23). Market interest rates of between 14% and 21% have been
applied to calculate the residual equity value of the financial instrument.
When interest is settled through additional Convertible Loan Notes being
issued, these additional loan notes have an additional equity element of their
value. During the year ended 31 December 2024 an historic adjustment of
£52,049 was made to transfer this equity element to other reserves.
Reconciliation of financial liabilities
Group Company
2024 2023 2024 2023
£ £ £ £
As at 1st January 3,046,473 1,839,219 2,788,534 1,687,697
New credit facility 1,214,648 383,862 100,000 233,862
Convertible loan notes issued 183,186 400,000 183,186 400,000
Transfer of equity element of convertible loan notes (123,714) (52,478) (123,714) (52,478)
Capital repayments (427,915) (43,583) (133,862) -
Convertible loan note interest 539,046 519,453 539,046 519,453
As at 31st December 4,431,724 3,046,473 3,353,190 2,788,534
19. Deferred tax liability
Group Company
2024 2023 2024 2023
£ £ £ £
Movements in the year:
Liability brought forward 487,991 632,190 - -
Charge / (credit) to profit or loss (152,667) (144,199) - -
Liability carried forward 335,324 487,991 - -
All deferred tax liabilities are recognised in respect of intangible and
tangible asset timing differences. No deferred tax assets have been recognised
by the Group.
20. FINANCIAL INSTRUMENTS
Financial instruments and risk management
The Group's financial instruments may be analysed as follows:
Group Company
2024 2023 2024 2023
£ £ £ £
Financial assets measured at amortised cost
Cash and cash equivalents 275,491 677,855 63,331 152,477
Trade receivables 2,276,950 2,202,850 - -
Contract assets 127,825 297,184 - -
Other receivables 537,874 440,560 155,402 177,827
3,218,140 3,618,449 218,733 330,304
Financial liabilities measured at amortised cost
Trade payables 1,086,222 1,221,776 37,315 166,823
Accruals 421,062 516,847 79,484 1,467
Other payables 412,292 339,670 5,017,638 3,985,002
Loans 4,431,724 3,046,473 3,353,190 2,788,534
6,351,300 5,124,766 8,487,627 6,941,826
Financial assets measured at amortised cost comprise cash, trade receivables,
contract assets and other receivables.
Financial liabilities measured at amortised cost comprise bank loans and
overdrafts, other loans, trade payables, convertible loan notes and other
payables.
The debt instruments, excluding convertible loan notes, were initially
recognised at fair value, and subsequently they were measured at amortised
cost using the effective interest rate method, whereby the fair value of the
debt approximates their carrying value.
The Group is exposed to a variety of financial risks through its use of
financial instruments which result from its operating activities. All of the
Group's financial instruments are classified as loans and receivables.
The Group does not actively engage in the trading of financial assets for
speculative purposes. The most significant financial risks to which the Group
is exposed are described below:
Credit risk
Generally, the Group's maximum exposure to credit risk is limited to the
carrying amount of the financial assets recognised at the reporting date, as
summarised above.
Credit default risk is the financial risk to the Group if a counter party to a
financial instrument fails to meet its contractual obligation. The nature of
the Group's receivable balances, the time taken for payment by entities and
the associated credit risk are dependent on the type of engagement.
Credit risk is minimised substantially by ensuring the credit worthiness of
the entities with which it carries on business. Credit terms are provided on a
case-by-case basis. The Group's trade and other receivables are actively
monitored. The Group has not experienced any significant instances of
non-payment from its customers.
Unbilled revenue is recognised by the Group only when all conditions for
revenue recognition have been met in line with IFRS 15.
Liquidity risk
Liquidity risk represents the contingency that the Group is unable to gather
the funds required with respect to its financial obligations at the
appropriate time and under reasonable conditions in order to meet their
current obligations. The Group attempts to manage this risk so as to ensure
that it has sufficient liquidity at all times to be able to honour its current
and future financial obligations under normal conditions and in exceptional
circumstances. Financing strategies to ensure the management of this risk
include the issuance of equity or debt securities as deemed necessary. Apart
from loans, all prior year liabilities will have maturity of less than one
year. Refer to note 18 for details of loans and borrowings.
The group's financial liabilities mature to the following profile:
2025 2026 2027 Total
£ £ £ £
Trade payables 1,086,224 - - 1,086,224
Accruals 421,062 - - 421,062
Other payables 412,292 - - 412,292
Loans 3,836,573 601,010 115,041 4,552,624
5,756,151 601,010 115,041 6,472,202
Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk
arising from various currency exposures, primarily Australian Dollars, United
States Dollars and Euros. The Group monitors exchange rate movements closely
and ensures adequate funds are maintained in appropriate currencies to meet
known liabilities.
The Group's exposure to foreign currency risk at the end of the respective
reporting periods were as follows:
2024 2023
AUD USD EUR AUD USD EUR
Assets and liabilities 139,840 818,546 (549,860) 172,852 1,681,089 (537,629)
Assets and liabilities include the monetary assets and liabilities of
subsidiaries denominated in foreign currency.
The Group is exposed to foreign currency risk on the relationship between its
functional currencies and other currencies in which the Group's material
assets and liabilities are denominated. The table below summaries the effect
on reserves had the functional currencies of the Group weakened or
strengthened against these other currencies, with all other variables held
constant.
Group Company
2024 2023 2024 2023
£ £ £ £
10% strengthening of functional currency 23,799 85,952 - -
10% weakening of functional currency (49,978) (180,498) - -
The impact of a change of 10% has been selected as this has been considered
reasonable given the current level of exchange rates and the volatility
observed both on a historical basis and market expectations for future
movements.
21. Share capital and premium
Ordinary share capital
Issued and fully paid No. £
As at 1 Jan 2024 17,390,768 173,908
Shares issued 74,099 741
As at 31 Dec 2024 17,464,867 174,649
During the reporting period 74,099 new shares were issued as a result of
exercised share options with an average exercise price of £0.27. At the
reporting date deferred share subscriptions were outstanding of £68,205
(2023: £125,000) and are held within other receivables.
22. Share Option Reserve
The Group operates a programme for employees of its subsidiaries to acquire
shares in the company under an EMI scheme. All options are settled by the
physical delivery of shares once the options have vested and are exercised.
The number and weighted average exercise price of share options during the
year were as follows:
2024 2023
Weighted average exercise price Share options Weighted average exercise price Share options
£ No. £ No.
Outstanding at start of period 1.47 1,458,484 1.49 1,569,620
Forfeited/expired during period 1.35 (89,569) 1.01 (196,626)
Granted during period 0.50 100,000 0.04 111,000
Exercised during period 0.27 (74,099) 0.01 (25,510)
Outstanding at end of period 1.48 1,394,816 1.47 1,458,484
Share options have been valued at grant date based on the Black Scholes
valuation model using an estimated volatility of 40%. Options vest over
varying terms according to individual option agreements from vesting in full
on grant date to a period of three years.
All options expire after seven years and an expected take-up rate of 100% has
been applied. A dividend yield of 0% has been applied to option valuation
models as the Group focuses on capital growth through this period. Risk-free
rates have been applied ranging from 0.26% to 3.62% based on UK 10-year gilt
rates since 2014.
The movement in option valuation during the year ended 31 December 2024
resulted in a staffing cost being recognised by the Group of £103,066 (2023:
£217,921), with a corresponding increase in the Group's equity.
The valuation of options exercised, lapsed, and forfeited during the year
totalled £230,993 (2023: £181,122) which has been transferred to Retained
Earnings.
The contractual life for outstanding options runs for a number of periods, the
latest of which being to 5(th) December 2031.
23. Other reserves
2024 2023
£ £
Convertible loan notes 575,146 451,432
575,146 451,432
Loan notes are in issue which are convertible into new ordinary shares at
prices ranging from £0.50 to £1.10 per new ordinary share at any point
during the three-year term of the loan.
The equity element of the convertible loan note is recognised within other
reserves. Market interest rates varying from 14% to 21% have been applied to
calculate the residual equity value of the financial instrument.
24. Related party transactions
Key management personnel and directors' remuneration is detailed at Note 8.
Local Planet International Limited is a related party to the group by virtue
of having Directors in common. Ian James, Martyn Rattle and Nigel Sharrocks
are directors of both companies.
Recharges for shared services totalling £93,448 (2023: £124,668) are
included in revenue for the year ended 31 December 2024. Amounts outstanding
at the year end included in trade receivables totals £121,995 (2023:
£9,857).
Recharges for direct costs incurred were processed during the year ended 31
December 2024 totalling £100,100 (2023: £100,100). Amounts outstanding at 31
December 2024 totalled £130,523 (2023: £37,800).
Silver Bullet Data Science Limited is a related party to the group by the
virtue of having Directors in common. Ian James and Christopher Ellis are
directors of both companies.
Included within current liabilities is a balance of £10,000 (2023: £10,000)
owed to the company by the Group.
Umberto Torrielli: A director of the Group company relocated to the USA in
order to establish a new presence in this territory in 2020. For this purpose
a loan was issued of £159,955 which is held within other debtors at the end
of the reporting period (2023: £151,969). The loan is repayable within 12
months and attracts interest at the Bank of England interest rate.
Transactions with group companies
As a holding company for the subsidiaries listed at Note 14, all funds raised
are distributed to subsidiary companies as required. A summary of balances
outstanding at the period end are provided below. All balances are repayable
on demand and are lent without security or accruing any interest.
A provision for bad debts has been included in the Company financial
statements for all amounts receivable from subsidiaries in both the current
and previous year.
Amounts owed to subsidiary companies 2024 2023
£ £
Silver Bullet Media Services Limited 2,912,082 2,921,809
Iotec Native Limited 802,131 802,131
Silver Bullet Data Services Limited 1,251,874 196,011
Local Planet Data Services Ltd 41,500 55,000
5,007,587 3,974,951
25. Earnings per share
Earnings per share (EPS) is calculated on the basis of profit attributable to
equity shareholders divided by the weighted average number of shares in issue
for the year. The diluted EPS is calculated on the treasury stock method and
the assumption that the weighted average EMI share options outstanding during
the period are exercised.
2024 2023
£ £
Loss after taxation (2,901,814) (3,171,684)
Non-controlling interest (91) (2,534)
Loss after taxation attributable to shareholders (2,901,723) (3,169,150)
Number of shares
Weighted average number of ordinary shares in issue 17,458,692 16,057,860
Dilutive effect of in-the-money share options 561,494 656,832
Diluted weighted average number of shares 18,020,186 16,714,692
Earnings per share
Basic earnings per share (0.17) (0.20)
Diluted earnings per share (0.17) (0.20)
As there is a loss for the year the options are antidilutive and therefore the
basic and the diluted EPS are the same.
26. Other financial commitments
The Company has provided a guarantee in respect of the
outstanding liabilities of the subsidiary companies listed below in accordance
with Sections 479A - 479C of the Companies Act 2006, as these subsidiary
companies of the Group are exempt from the requirements of the Companies Act
2006 relating to the audit of the accounts by virtue of Section 479A of this
Act.
Silver Bullet Media Services Limited (06216702)
IOTEC Native Limited (08286180)
Silver Bullet Data Services Limited (10081847)
Local Planet Data Services Ltd (13123941)
Silver Bullet AI Ltd (16025369)
27. Subsequent events
On 23(rd) June 2025 all convertible loan notes were settled
through the issue of new loan notes, convertible loan notes, and new ordinary
shares. This refinancing does not indicate any financial effect on the
balances disclosed at the reporting date.
28. Ultimate controlling party
Management consider there is no ultimate controlling party of the Group.
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