Registered number: 13840019
DRIVE FUZE LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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CHAIRMAN'S STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2023
A statement from our Chairman, Nick Rothwell
Drive Fuze has been established to provide customers with cars on a subscription basis. Consumer demand over recent years have seen the subscription model transform many aspects of our lives and our consumption of products and services. The subscription of vehicles provides freedom and flexibility, reflecting this evolution and rapidly growing alternative to traditional car finance and usage options.
A highly experienced management and operational team have been carefully chosen for their proven track record to ensure that our automotive technology solution delivers a dynamic approach for a global need.
Our mission is to transform how people access vehicles by changing traditional ‘ownership’ to 21st century ‘usership’, ensuring customer freedom, flexibility, ease and value.
We provide an ever-changing range of new and nearly new petrol, hybrid and electric vehicles that are brand agnostic on flexible, competitive monthly subscription terms. Our unique in market offering is all-inclusive, including all vehicle servicing, maintenance and fully comprehensive insurance.
I am pleased to report that in our first trading period we are on budget and have developed (and continue to develop) world class systems, a consumer centric website, robust operational processes, solid supply agreements, all of which are critical enablers for the business to grow sustainably and at pace. Our core retail business has seen good growth in the period, and we have made a positive start to the new financial year.
Our system infrastructure was deliberately designed to offer a best-in-class SaaS solution to other automotive operators, either as a fully managed or white label product. This can be adopted fully or modularly providing end-to-end operational solutions for delivery, in-life and end of life, quickly and cost-effectively. More importantly, this will provide them with an additional channel that responds to changing consumer demand and will generate incremental revenue opportunities for us.
We are confident that the business will continue to evolve and grow throughout the balance of the year as Drive Fuze brand awareness increases through our widespread marketing activity.
I would like to take this opportunity to thank the entire team for their skills, dedication and support in delivering the establishment and launch of Drive Fuze.
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DRIVE FUZE LIMITED
REGISTERED NUMBER:13840019
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BALANCE SHEET
AS AT 31 MARCH 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
Drive Fuze Limited is a private company limited by shares, incorporated in England and Wales. Its registered office is Monometer House, Rectory Grove, Leigh on Sea, Essex, SS9 2HL. The principal place of business is Building 101, Thurleigh Airfield Business Park, Thurleigh, Bedfordshire, MK44 2YP.
The company was incorporated on 11 January 2022, its principal activity being that of a Mobility-as-a-Service (MaaS) and Software-as-a-Service (SaaS) technology solution created to fulfil the 21st century consumer demand for "Usership and not Ownership", providing a monthly all-inclusive vehicle subscription including the vehicle, servicing, maintenance and insurance.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis as the directors are satisfied that the Company has adequate resources to continue in the ordinary course of business for the foreseeable future, despite the initial losses while the business is in its start-up phase.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
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Operating leases: the Company as lessor
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Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
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The average monthly number of employees, including directors, during the period was 6.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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Factors affecting tax charge for the period
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The Company has losses of £2,301,530 available to carry forward against future trading profits.
No deferred tax asset has been recognised in the current year given there is not yet enough certainty that there will be sufficient taxable profits in future years against which these losses can be offset. The deferred tax unrecognised at the expected future tax rate of 25% is £575,383.
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Charge for the period on owned assets
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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Charge for the period on owned assets
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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The Company operates a defined contributions pension scheme. The pension cost charge represents contributions payable by the Company to the fund and amounted to £3,879. Contributions totalling £1,494 were payable to the fund at the balance sheet date and are included in creditors.
The auditors' report on the financial statements for the period ended 31 March 2023 was unqualified.
The audit report was signed on 10 October 2023 by S Harrison (Senior statutory auditor) on behalf of Venthams.
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