REGISTERED NUMBER: |
Financial statements for the year ended 31 December 2022 |
For |
Scarista Limited |
Trading as |
Equiom (Scotland) |
REGISTERED NUMBER: |
Financial statements for the year ended 31 December 2022 |
For |
Scarista Limited |
Trading as |
Equiom (Scotland) |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Contents of the financial statements |
for the Year Ended 31 December 2022 |
Page |
Company information | 1 |
Statement of financial position | 2 |
Notes to the financial statements | 3 |
Scarista Limited |
Trading as Equiom (Scotland) |
Company information |
for the Year Ended 31 December 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Donnington Court |
37 Esplanade |
St Helier |
Jersey |
JE1 4XA |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Statement of financial position |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 6 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 7 |
Share premium | 8 |
Retained earnings | 8 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Statement of comprehensive income has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Notes to the financial statements |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Scarista Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Scarista Limited (the ‘Company’), is incorporated in the United Kingdom and is a private registered company |
limited by shares. The registered office is 15a Harbour Road, Inverness, Highland, IV1 1SY. The principal |
activities of the Company are those of management accounting, treasury, statutory accounting and tax and payroll bureau services. |
The financial statements have been prepared on a going concern basis, under the historical cost convention and in accordance with Companies Act 2006 and Financial Reporting Standards (FRS). These financial statements have been prepared in accordance with United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Section 1A ("FRS 102 Section 1A”). Under this Standard, the Company is not required to include a Statement of Cash Flows or Strategic Report in the Financial Statements. As a result, the Directors have elected not to include this information in the Financial Statements. |
The financial statements are presented in GBP Sterling (£), which is the Group’s functional and presentation |
currency. The financial statements have been rounded to the nearest £1. A summary of the key accounting policies, which have been applied consistently, are set out below: |
Going concern |
As at the reporting date, the Company has cash and cash equivalents of £48,323 (2021: £41,013) and is in a net liability position of £8,085,274 (2021: Net liability of £4,382, 741). The Company incurred a total comprehensive loss for the year of £3,702,533 (2021: £1,881,166). |
As part of their going concern assessment, the Directors have considered the Company’s position, taking into account all available information about the future, which is at least, but not limited to, twelve months from the reporting period. This assessment and the events and conditions surrounding it indicate that a material uncertainty exists, which may cast doubt on the Company’s ability to continue as a going concern. |
The Company relies on continued support of Equiom Bidco Limited (the “parent company”) to continue its |
operations and holds a letter of support from the parent company. The parent company will provide financial |
support to enable the Company to meet their liabilities as they fall due and future obligations in order to continue as a going concern. |
Additionally, the ultimate controlling party of the parent company, Alcentra Limited will provide support to enable the parent company and its subsidiaries (of which the Company is one) to meet their liabilities as they fall due and future obligations in order to continue as a going concern. Therefore, on this basis, the Directors have prepared the financial statements on a going concern basis. |
Exemptions for qualifying entities under FRS102 |
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to conditions. The company has taken advantage of the following exemptions in its individual financial statements: |
- from preparing a statement of cash flows, on the basis that it is a qualifying entity |
- from disclosing the company key management personnel compensation, as required by FRS 102 paragraph |
33.7 |
- from preparing a Statement of Changes in Equity |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Notes to the financial statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue is measured based on the consideration specified in client contracts. Revenue is based on variable or fixed consideration or a combination of both. Variable consideration is estimated based on time costs incurred ("work-in-progress" or "WIP"). WIP-based fees are a function of time spent (hours) to perform the service and corresponding hourly charge out rates for the staff involved. Fixed fees are typically recognised on a straight-line (over time) basis over the duration of the contract. |
The following is a description of the principal services from which the Company generates its revenue. |
Fiduciary Services |
Principally fees from the provision of directorships, trustees or other such nominee or fiduciary agency. The |
Company recognises such fees on a straight-line basis over the period of the contract, reflecting the pattern of satisfaction of the performance obligations. |
Structure Set Up & Support |
This principally comprises revenues from the provision of administration services for asset and other structures including company secretarial services, provision of registered offices and other structure hosting services. The Company recognises revenue from administration and related services when the work is performed. A portion of these administration fees are fixed and these are recognised on a straight-line basis over the duration of the contract. This basis reflects the pattern of satisfaction of the related services. These services are typically annual and recurring in nature. As such recognising fixed fees based on a WIP basis or evenly over the contract period does not result in significant variances. |
Accounting services |
Revenue from accounting and bookkeeping services is mostly recognised based on a WIP basis. Where fees are periodic and fixed, these are recognised on a straight-line basis over the contract period, reflecting the pattern of satisfaction of the accounting services rendered. |
Tax services |
This comprises revenues from the provision of advisory and compliance services covering both direct and indirect taxation as well as other tax compliance requirements. These revenues are mostly recognised based on a WIP basis. Where fees are periodic and fixed, these are recognised on a straight-line basis over the contract period, reflecting the pattern of satisfaction of services rendered. |
Risk & Compliance Services |
Revenues from the provision of outsourced compliance services are based on an agreed number of hours provided each month and revenues are recognised evenly over the billing period. Fees from licensing applications are one off pieces of work which are billed in 3 instalments 3 months apart and recognised when billed. |
Other services |
The Company recognises revenue from any other services when the work is performed i.e. on a time costs incurred basis. |
Deferred income |
Fees billed in advance are recognised as deferred income and released as revenue over the period to which the services relate. Fees billed in arrears are accrued as accrued income receivable and are recognised as income in line with the services provided. |
Direct costs |
Direct costs are costs incurred by certain group operating entities in relation to the delivery of services and |
supporting growth. These include sponsorship costs, consultancy fees and other professional fees incurred from outsourced services. Direct costs are recognised on an accruals basis. |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Notes to the financial statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Other income |
Other income is recognised on an accruals basis. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Initial recognition |
Property, plant and equipment is stated at cost, less accumulated depreciation and provisions for impairment, if any. Additions and subsequent expenditure are capitalised only to the extent that they enhance the future economic benefits to be derived from the asset. |
Depreciation and impairment |
Depreciation is calculated on a straight-line basis over the useful life of the related assets. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. |
Derecognition |
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Comprehensive Income when the asset is derecognised. |
Useful economic lives |
The useful economic lives of the assets are estimated as follows: |
Fixtures and fittings 2 to 10 years |
Plant and Machinery 2 to 4 years |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Notes to the financial statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters in to basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments like loans and other other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; debt instruments that are payable or receivable within one year, typically trade payables or receivables are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Notes to the financial statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within bank loans in current liabilities and non-current liabilities in the statement of financial position. |
Foreign currency translation |
Transactions in foreign currencies are recorded at the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate exchange ruling at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. All exchange gains or losses are included in the operating results. |
Expenses and cost of sales |
Expenses and cost of sales are accounted for on an accruals basis and are recorded in the financial statements in the periods in which they relate. |
Operating leases |
Rentals payable under operating leases are generally charged to profit or loss on a straight-line basis over the lease term. However, when rental payments are structured to increase in line with expected general inflation the Company recognises rent expense equal to amounts owed to the lessor for the annual period. The aggregate benefits of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight-line basis. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Notes to the financial statements - continued |
for the Year Ended 31 December 2022 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Bad debt provision | (6,448 | ) | (16,616 | ) |
Amounts owed by group undertakings |
Prepayments and accrued income |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
VAT | 139,048 | 261,879 |
Other creditors |
7. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | 0.001 | 109 | 109 |
8. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2022 | ( |
) | (4,382,850 | ) |
Deficit for the year | ( |
) | ( |
) |
At 31 December 2022 | ( |
) | (8,085,383 | ) |
9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the auditors was unqualified. |
for and on behalf of |
10. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for its employees. The contributions for the period amounted to £181,698 (2021: £138,182). At the period end there was £48,260 (2021: £30,869) included in other creditors |
Scarista Limited (Registered number: SC152660) |
Trading as Equiom (Scotland) |
Notes to the financial statements - continued |
for the Year Ended 31 December 2022 |
11. | RELATED PARTY DISCLOSURES |
No dividends (2021: £nil) have been paid to the shareholder directors. |
Accounting services were charged to related parties in the sum of £1,099,610 (2021: £1,139,113), of which £Nil (2021: £21,179) remains receivable at the period end. |
Amounts due from group undertakings at the period end total £117,485 (2021: £21,179); Equiom (Isle of Man) |
Limited £Nil (2021: £17,899); Equiom Corporate Services (Hong Kong) Limited £422 (2021: £nil), Equiom |
Marine & Aviation Services (Jersey) Limited £63 (2021: £nil), Equiom (Malta) Limited £3,280 (2021: £3,280) |
and Equiom (Solutions) Limited £113,720 (2021: £nil). |
Amounts due to group undertakings at the period end total £8,134,931 (2021: £4,256,424); Equiom Group (Europe) Limited £3,077,197(2021: £3,076,199), Equiom Bidco Limited £5,025,342 (2021: £nil), Equiom (Isle of Man) Limited £31,445 (2021: £nil), Equiom (Jersey) Limited - £947 (2021: £nil) and Equiom Holdings Limited £nil (2021: £1,180,265). |
. |
12. | ULTIMATE CONTROLLING PARTY |
The Company is a wholly owned subsidiary of Equiom Group (Europe) Limited, a company incorporated in the Isle of Man. Equiom Group (Europe) Limited is a wholly owned subsidiary of Equiom Bidco Limited, domiciled in Jersey. Equiom Bidco Limited was wholly owned by Jersey incorporated Equiom Topco Limited, however, on 26 August 2022, the entire share capital of Equiom Bidco Limited was acquired by Clareant Trust Topco Limited, via its wholly owned subsidiaries, Clearant Trust Midco Limited and Clareant Trust Holdings Limited, all incorporated in Jersey, fully owned by Alcentra managed funds. The ultimate controlling party of the Group is considered to be Alcentra Limited, incorporated in England, as the manager and advisor of Alcentra funds. |
13. | SUBSEQUENT EVENTS |
To the knowledge of the Directors, there have been no subsequent events that would require adjustment to, or disclosure in these financial statements. |