REGISTERED NUMBER: 04632419 (England and Wales)

Financial Statements

for the Year Ended 31 December 2022

for

Z-Card Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

K Daneels

SECRETARY:

MYUKOFFICE LTD

REGISTERED OFFICE:

8 Northumberland Avenue

London

WC2N 5BY

REGISTERED NUMBER:

04632419 (England and Wales)

AUDITORS:

Try Lunn & Co

Chartered Accountants and Registered Auditors

Roland House

Princes Dock Street

Hull

HU1 2LD

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

2,285

3,479

Investments

6

41,700

41,700

43,985

45,179

CURRENT ASSETS

Debtors

7

106,153

37,808

Cash at bank

23,147

9,359

129,300

47,167

CREDITORS

Amounts falling due within one year

8

1,636,190

1,492,715

NET CURRENT LIABILITIES

(1,506,890

)

(1,445,548

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,462,905

)

(1,400,369

)

CREDITORS

Amounts falling due after more than one year

9

1,506,545

1,427,732

NET LIABILITIES

(2,969,450

)

(2,828,101

)

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Retained earnings

12

(2,970,450

)

(2,829,101

)

SHAREHOLDERS' FUNDS

(2,969,450

)

(2,828,101

)

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 2 October 2023 and were signed by:

K Daneels - Director

1.	STATUTORY INFORMATION

Z-Card Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Due to circumstances, including as a result of the coronavirus pandemic, and in order to reduce costs for the company the Director of the company, who is also a Director of the wider Daneels group, made strategic changes to the company at the end of 2020 which included a reduction in the company's staff force, discontinuing the lease of the London office where it had previously operated from and also the allocation of Daneels group staff to oversee the day to day running of the company. Since the beginning of 2021 the company now operates on a much smaller scale. The company is reliant on this operational support and on the financial support of the Daneels group in order to continue as a going concern. The Daneels group have agreed to defer repayment of the GBP 2.9 million loan owed to them by the company. The company is also reliant on the support from its' bankers, KBC, who provide factoring facilities.

After reporting losses in recent years, the consolidated results of the Daneels Group show profits of EUR 31,300 in the year ended 31 March 2022 and profits of EUR 142,000 in the year ended 31 March 2023. The Directors of the Daneels Group are forecasting continued growth in the group, and in the company, in turnover and profit both this year and over the next two years. The Director is confident that he can rely on the support from the Daneels Group however detailed financial forecasts of the Daneels group have not been prepared.

The financial statements have been prepared on the going concern basis.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. Revenue on the sale of goods is recognised on despatch in accordance with the company's terms of sale. Revenue relating to services is recognised when the company has performed its obligations, in accordance with contractual terms.

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.

Amortisation is provided at the following rates:

Patents

3-12 years

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

33% on cost and 20% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a workplace pension scheme. Contributions payable to the workplace pension scheme are charged to the profit or loss in the period which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2021 - 4 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2022

and 31 December 2022

745,117

AMORTISATION

At 1 January 2022

and 31 December 2022

745,117

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

-

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2022

and 31 December 2022

8,295

DEPRECIATION

At 1 January 2022

4,816

Charge for year

1,194

At 31 December 2022

6,010

NET BOOK VALUE

At 31 December 2022

2,285

At 31 December 2021

3,479

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2022

and 31 December 2022

41,700

NET BOOK VALUE

At 31 December 2022

41,700

At 31 December 2021

41,700

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

78,744

22,869

Amounts owed by group undertakings

15,857

10,531

Other debtors

11,552

4,408

106,153

37,808

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

17,900

9,976

Amounts owed to group undertakings

1,540,339

1,438,823

Other creditors

77,951

43,916

1,636,190

1,492,715

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Amounts owed to group undertakings

1,506,545

1,427,732

10.	SECURED DEBTS

The company uses KBC Commercial Finance NV invoice factoring. There is a fixed charge over book debts and proceeds of book debts.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

1,000

Ordinary

1

1,000

1,000

12.

RESERVES

Retained

earnings

£

At 1 January 2022

(2,829,101

)

Deficit for the year

(141,349

)

At 31 December 2022

(2,970,450

)

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Andrew Ewart FCA FCCA (Senior Statutory Auditor)

for and on behalf of Try Lunn & Co

14.	RELATED PARTY DISCLOSURES

At the balance sheet date amounts totalling £18,994 (2021: £33,994) were owed by the company to Dankro Ltd, the parent company of Z-Card Ltd.

During the year the company recharged commissions and costs under normal commercial terms to Z-Media Global, a subsidiary company, which amounted to £218,494 (2021: £204,783). The company received management services under normal commercial terms from Z-Media Global totalling £132,930 (2021: nil).

At the balance sheet date amounts totalling £69,555 (2021: £75,384) were owed by the company to Z-Media Global.

During the year the company purchased goods and services totalling £316,284 (2021: £169,124) under normal commercial terms from Drukkerij Daneels BVBA, a sister company. At the balance sheet date, the total outstanding in respect of these goods and services was £1,377,050 (2021: £1,291,892) and is repayable on demand.

During a previous period a loan was advanced to the company by Drukkerij Daneels BVBA, a sister company, amounting to EUR 1.7m. At the balance sheet date the loan remained outstanding, in full, at a value of £1,506,545 (2021: £1,427,732). The loan is due after more than one year. No interest is being charged on the loan.

At the balance sheet date a loan totalling £74,696 (2021: £37,553) was owed by the company to Z-Card SAS, a subsidiary company.

At the balance sheet date a loan totalling £15,857 (2021: £10,407) was owed to the company by Daneels Grafische Groep, the parent company for the Daneels Group.

15.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is K Daneels.