Four adults accused of abusing children at a circus training school west of Sydney deny the allegations against them, a court has heard.

Seven people linked to the business in the Blue Mountains were arrested on Monday and had 127 charges laid against them over allegations they physically and sexually abused three boys younger than eight between 2014 and 2016.

The circus training school located west of Sydney. Credit:Facebook

The boys, who were known to them, were allegedly forced to produce child exploitation material and reportedly had to take part in "rituals" where they had blood taken from them and were told to drink it.

The business caters to children with and without disabilities.