Company registration number 08835116 (England and Wales)
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
COMPANY INFORMATION
Director
Mr AA Barzely
Secretary
Ince & Co Corporate Services Limited
Company number
08835116
Registered office
C/O Ince & Co Corporate Services Limited
4th Floor
Gracechurch Street
London
EC30 OBT
Auditor
Arthur G Mead Limited
Fourth Floor Fitzrovia House
153-157 Cleveland Street
London
W1T 6QW
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
CONTENTS
Page
Director's report
1
Director's responsibilities statement
2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The director presents his annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of a service company providing sales, marketing and operational support to other group companies.

Results and dividends

The results for the year are set out on page 6.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

No preference dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr AA Barzely
Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
Mr AA Barzely
Director
29 September 2023
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARRISE SERVICES LIMITED
- 3 -
Opinion

We have audited the financial statements of Arrise Services Limited (the 'company') for the year ended 31 December 2022 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARRISE SERVICES LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- We identified the laws and regulations applicable to the company through discussions with the director and other

management, and from our commercial knowledge of the sector.

- Discussing with the director and management their policies and procedures regarding compliance with laws and regulation,

- Communicating identified laws and regulations throughout our engagement team and remaining alert to any indication of non-compliance throughout our audit; and

- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

- Making enquiries of the director and management on whether they had knowledge of any actual, suspected or alleged fraud;

- Gaining an understanding of the internal controls established to mitigate the risks related to fraud;

- Discussing amongst the engagement team the risks of fraud; and.

- Addressing the risks of fraud through management override of controls by preforming journal entry testing.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARRISE SERVICES LIMITED
- 5 -

In response to the risk of irregularities and non-compliance with laws an regulations, we designed procedures which included, but were not limited to:

 

- Agreeing financial statement disclosures to underlying supporting documentation;

- Reviewing minutes of meetings of those charged with governance.

- Enquiring of management as to actual and potential litigation and claims; and

- Reviewing correspondence with HMRC and the company's legal advisors.

 

There are inherent limitations in the audit procedures described above and primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Gerard McKey (Senior Statutory Auditor)
For and on behalf of Arthur G Mead Limited
30 September 2023
Chartered Accountants
Statutory Auditor
Fourth Floor Fitzrovia House
153-157 Cleveland Street
London
W1T 6QW
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
2022
2021
Notes
£
£
Revenue
2
7,266,928
2,644,200
Cost of sales
(2,537,315)
-
0
Gross profit
4,729,613
2,644,200
Administrative expenses
(4,079,183)
(2,422,421)
Operating profit
3
650,430
221,779
Finance costs
5
(42,368)
(7,906)
Profit before taxation
608,062
213,873
Income tax expense
6
-
0
-
0
Profit and total comprehensive income for the year
608,062
213,873

The income statement has been prepared on the basis that all operations are continuing operations.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 7 -
2022
2021
Notes
£
£
ASSETS
Non-current assets
Property, plant and equipment
7
44,251
64,030
Right-of-use assets
7
65,584
95,853
109,835
159,883
Current assets
Trade and other receivables
8
5,869,358
3,140,805
Cash and cash equivalents
557,676
165,175
6,427,034
3,305,980
Total assets
6,536,869
3,465,863
EQUITY
Called up share capital
13
1,000
1,000
Retained earnings
888,433
280,371
Total equity
889,433
281,371
LIABILITIES
Non-current liabilities
Lease liabilities
11
33,566
65,776
Current liabilities
Trade and other payables
10
5,581,659
3,087,805
Lease liabilities
11
32,211
30,911
5,613,870
3,118,716
Total liabilities
5,647,436
3,184,492
Total equity and liabilities
6,536,869
3,465,863

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

The financial statements were approved and signed by the director and authorised for issue on 29 September 2023
Mr AA Barzely
Director
Company registration number 08835116
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2021
1,000
66,498
67,498
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
213,873
213,873
Balance at 31 December 2021
1,000
280,371
281,371
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
608,062
608,062
Balance at 31 December 2022
1,000
888,433
889,433
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
471,964
193,604
Interest paid
(42,368)
(7,906)
Net cash inflow from operating activities
429,596
185,698
Investing activities
Purchase of property, plant and equipment
(6,185)
(7,428)
Net cash used in investing activities
(6,185)
(7,428)
Financing activities
Payment of lease liabilities
(30,910)
(29,665)
Net cash used in financing activities
(30,910)
(29,665)
Net increase in cash and cash equivalents
392,501
148,605
Cash and cash equivalents at beginning of year
165,175
16,570
Cash and cash equivalents at end of year
557,676
165,175
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
1
Accounting policies
Company information

Arrise Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Ince & Co Corporate Services Limited, 4th Floor, Gracechurch Street, London, EC30 OBT. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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

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

1.2
Going concern

The director has at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

For construction contracts, where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Leasehold land and buildings
20% on cost
Leasehold improvements
20% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

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, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
Financial assets at fair value through profit or loss

Financial assets are classified as at FVTPL when the financial asset is held for trading. This is the case if:

 

 

Financial assets at FVTPL are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset. Interest and dividends are included in 'Investment income' and gains and losses on remeasurement included in 'other gains and losses' in the statement of comprehensive income.

Financial assets held at amortised cost

Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.

 

Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

 

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Trade Receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

Financial assets classified as available for sale are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income. Where an AFS financial asset is disposed of or determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.

 

Dividends and interest earned on AFS financial assets are included in the investment income line item in the statement of comprehensive income.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

 

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.8
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Revenue

An analysis of the company's revenue is as follows:

2022
2021
£
£
Revenue analysed by class of business
Licensing fees
2,670,857
328,345
Intercompany revenue
4,596,071
2,315,855
7,266,928
2,644,200
2022
2021
£
£
Revenue analysed by geographical market
Argentina
543,769
40,643
Colombia
915,757
287,702
Canada
1,211,331
-
Malta
4,596,071
2,315,855
7,266,928
2,644,200
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
3
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
16,439
19,993
Fees payable to the company's auditor for the audit of the company's financial statements
10,780
14,000
Depreciation of property, plant and equipment
56,233
55,744
4
Employees

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

2022
2021
Number
Number
Compliance
3
1
Development
15
15
Product Design
3
-
Marketing
2
-
Operations
2
-
Legal
1
-
Total
26
16

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
2,981,591
1,835,370
Social security costs
389,723
193,745
Pension costs
59,746
150,858
3,431,060
2,179,973
5
Finance costs
2022
2021
£
£
Interest on loans
38,959
3,250
Interest on lease liabilities
3,409
4,656
Total interest expense
42,368
7,906
6
Income tax expense
2022
2021
£
£
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Income tax expense
2022
2021
£
£
(Continued)
- 17 -

The charge for the year can be reconciled to the profit per the income statement as follows: - -

2022
2021
£
£
Profit before taxation
608,062
213,873
Expected tax charge based on a corporation tax rate of 19.00% (2021: 19.00%)
115,532
40,636
Unutilised tax losses carried forward
(115,532)
(40,636)
Taxation charge for the year
-
-

Deferred tax asset on previous year losses was not recognised in the past as this difference was not considered temporary, this treatment has continued, The company has unused losses of £165,106 to carry forward.

7
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2021
151,347
52,356
6,360
39,610
249,673
Additions
-
0
687
-
0
6,741
7,428
At 31 December 2021
151,347
53,043
6,360
46,351
257,101
Additions
-
0
-
0
-
0
6,185
6,185
At 31 December 2022
151,347
53,043
6,360
52,536
263,286
Accumulated depreciation and impairment
At 1 January 2021
25,225
6,107
1,053
9,089
41,474
Charge for the year
30,269
10,607
1,272
13,596
55,744
At 31 December 2021
55,494
16,714
2,325
22,685
97,218
Charge for the year
30,269
10,609
1,272
14,083
56,233
At 31 December 2022
85,763
27,323
3,597
36,768
153,451
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
(Continued)
- 18 -
Carrying amount analysed between owned assets and right-of-use assets
At 31 December 2022
Owned assets
-
25,720
2,763
15,768
44,251
Right-of-use assets
65,584
-
-
-
65,584
65,584
25,720
2,763
15,768
109,835
At 31 December 2021
Owned assets
-
36,329
4,035
23,666
64,030
Right-of-use assets
95,853
-
-
-
95,853
95,853
36,329
4,035
23,666
159,883

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2022
2021
£
£
Net values at the year end
Property
65,584
95,853
Depreciation charge for the year
Property
30,269
30,269
8
Trade and other receivables
2022
2021
£
£
Trade receivables
418,344
104,852
VAT recoverable
4,847
8,368
Amount due from group companies
5,169,085
2,610,106
Prepayments and accrued income
277,082
417,479
5,869,358
3,140,805

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

9
Trade receivables - credit risk
Fair value of trade receivables

The director considers that the carrying amount of trade and other receivables is approximately equal to their fair value.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Trade receivables - credit risk
(Continued)
- 19 -

No significant receivable balances are impaired at the reporting end date.

10
Trade and other payables
2022
2021
£
£
Trade payables
5,156
11,985
Accruals
438,873
327,325
Social security and other taxation
155,919
45,433
Amount due to group companies
4,981,711
2,703,062
5,581,659
3,087,805
11
Lease liabilities
2022
2021
Maturity analysis
£
£
Within one year
32,211
30,911
In two to five years
33,566
65,776
Total undiscounted liabilities
65,777
96,687

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2022
2021
£
£
Current liabilities
32,211
30,911
Non-current liabilities
33,566
65,776
65,777
96,687
2022
2021
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
3,409
4,656
Other leasing information is included in note .
ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
12
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,746
150,858

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

13
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
14
Capital risk management

The company is not subject to any externally imposed capital requirements.

15
Related party transactions

The company charged marketing and operational support fees of £4,596,071 (2021: £2,315,855) to another group company Pine Solutions Ltd (Formerly Pragmatic Software Development Ltd).

 

The company received working capital funding from a group company Pragmatic Play Holdings Ltd with interest at 1% above the Bank of England base rate, interest charged amounted to £38,959 (2021 : Nil)

 

During the year, Pragmatic Play International Ltd charged the company a licence fee of £2,537,315 (2021 : Nil)

 

At the year end the company owed in aggregate £ 187,374 (2021 : £(92,956) ) to group companies.

16
Controlling party

The company's parent company is Pragmatic Play Ltd, a company registered in Malta, registered office and offices, 144 Tower Road, Sliema, SLM 1604, Malta.

ARRISE SERVICES LIMITED
(FORMERLY PRAGMATIC SERVICES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
17
Cash generated from operations
2022
2021
£
£
Profit for the year before income tax
608,062
213,873
Adjustments for:
Finance costs
42,368
7,906
Depreciation and impairment of property, plant and equipment
56,233
55,744
Movements in working capital:
Increase in trade and other receivables
(2,732,074)
(678,948)
Increase in trade and other payables
2,497,375
595,029
Cash generated from operations
471,964
193,604
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