Caseware UK (AP4) 2022.0.179 2022.0.179 2022-10-312022-05-312022-05-162022-05-312022-05-162022-10-31false2021-11-01Other business support service activities not elsewhere classifiedfalse35false 11604773 2021-11-01 2022-10-31 11604773 2020-11-01 2021-10-31 11604773 2022-10-31 11604773 2021-10-31 11604773 2020-11-01 11604773 1 2021-11-01 2022-10-31 11604773 1 2020-11-01 2021-10-31 11604773 d:Director1 2021-11-01 2022-10-31 11604773 d:Director2 2021-11-01 2022-10-31 11604773 d:Director2 2022-10-31 11604773 d:Director4 2021-11-01 2022-10-31 11604773 d:Director4 2022-10-31 11604773 d:RegisteredOffice 2021-11-01 2022-10-31 11604773 e:CurrentFinancialInstruments 2022-10-31 11604773 e:CurrentFinancialInstruments 2021-10-31 11604773 e:CurrentFinancialInstruments e:WithinOneYear 2022-10-31 11604773 e:CurrentFinancialInstruments e:WithinOneYear 2021-10-31 11604773 e:ShareCapital 2021-11-01 2022-10-31 11604773 e:ShareCapital 2022-10-31 11604773 e:ShareCapital 2020-11-01 2021-10-31 11604773 e:ShareCapital 2021-10-31 11604773 e:ShareCapital 2020-11-01 11604773 e:RetainedEarningsAccumulatedLosses 2021-11-01 2022-10-31 11604773 e:RetainedEarningsAccumulatedLosses 2022-10-31 11604773 e:RetainedEarningsAccumulatedLosses 2020-11-01 2021-10-31 11604773 e:RetainedEarningsAccumulatedLosses 2021-10-31 11604773 e:RetainedEarningsAccumulatedLosses 2020-11-01 11604773 d:OrdinaryShareClass1 2021-11-01 2022-10-31 11604773 d:OrdinaryShareClass1 2022-10-31 11604773 d:OrdinaryShareClass1 2021-10-31 11604773 d:FRS102 2021-11-01 2022-10-31 11604773 d:Audited 2021-11-01 2022-10-31 11604773 d:FullAccounts 2021-11-01 2022-10-31 11604773 d:PrivateLimitedCompanyLtd 2021-11-01 2022-10-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 11604773









PIXXLES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

 
PIXXLES LIMITED
 
 
COMPANY INFORMATION


Directors
A L Fairchild 
S A M Dawson (resigned 31 May 2022)
S B Kamaly (appointed 16 May 2022)




Registered number
11604773



Registered office
Cannon Place
78 Cannon Street

London

EC4N 6AF




Independent auditors
BKL Audit LLP
Chartered Accountants & Statutory Auditor

35 Ballards Lane

London

N3 1XW





 
PIXXLES LIMITED
 

CONTENTS



Page
Strategic report
 
 
1 - 3
Directors' report
 
 
4 - 5
Independent auditors' report
 
 
6 - 9
Statement of comprehensive income
 
 
10
Statement of financial position
 
 
11
Statement of changes in equity
 
 
12
Statement of cash flows
 
 
13
Notes to the financial statements
 
 
14 - 21


 
PIXXLES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2022

Introduction
 
The principal activity of Pixxles Limited  ("the Company") is that of financial payment services.

Business review
 
During 2022, Pixxles’ soft-launched its core service-offering: a merchant account linked to an e-wallet.  In tandem, Pixxles continued to focus on improving the Company’s core platform technology, establishing new supplier relationships to optimise the value chain required to provide services, developing highly-trained support teams on an international basis to minimise geographical risks & dependencies and continuing marketing initiatives to strengthen the brand while entering the market. 
Exceptional customer support is embedded in all aspects of Pixxles culture, and 2022 allowed us the opportunity to showcase our commitment to our merchants.  We consistently receive praise from clients about our proactive and hands-on approach, which has set the groundwork for Pixxles to easily adapt to all aspects of the new FCA Consumer Duty regulations.  Providing extraordinary customer support is our mission and is one of the key factors that sets us apart from our competition.  
Pixxles has continued to monitor the opportunities surrounding passporting rights throughout the EU/EEA.  The optimisation of the UK product offering and overwhelmingly positive feedback from our customers are key indicators that the products have matured to the point where Pixxles can enter the market in a competitive manner. Pixxles has continued to establish strong partnerships in order to successfully enter the European Market.   

Principal risks and uncertainties
 
Economic downturn due to: 
Inflation reducing consumer consumption of ecommerce goods
The increase of inflation due to the COVID pandemic and other global and local factors has caused a shift in consumer spending.  Consumers now must dedicate a larger portion of their salaries to securing basic necessities such as food and rent, and therefore have reduced disposable capital to spend on consumer goods. Pixxles is aware of this trend and has taken a business decision to broaden the types of merchants we work with to include more merchants who provide staple consumer products to take advantage of this shift in market..
Business risks
Increase in competition for card payments
The UK card payment market continues to grow with new participants joining regularly. This can increase the risk of reducing profit margins by having to meet competitors pricing. Pixxles is aware of this risk and aims to address this via providing industry-leading customer support in addition to releasing innovative products which will create brand recognition.  This will allow us not to compete on price but on service and product.
Increase in staff wages due to inflation
The current inflationary environment means that prices and therefore wages have risen which increases staff overhead costs for Pixxles. Pixxles is aware of this environment and of the cost of hiring highly qualified staff and will aim to address this by providing training and development plans for staff to ensure that they are able to upskill to ensure that they have the necessary skills to undertake their roles. Pixxles will also be willing to hire staff at appropriate rates for their level of experience and expertise

 
Page 1

 
PIXXLES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022

Operational Risks
IT systems rely on third parties for card processing and settlement
Pixxles currently relies on working with Partner Acquiring banks to provide transaction processing and settlement of funds to merchants. This poses a risk as Pixxles has no control over the up time and reliability of these banks systems. While the Company maintains Strong SLAs in the contracts regarding the up time, these are remedial measures which do not instantly solve the problem of any outages. Pixxles will endeavour to open direct acquiring services with the card schemes and also ensure that we have multiple partners who can acquire our transactions in the instances of outage..
Fin Crime risks
Economic downturn leads to increase in financial crime, resulting in more spent on Risk management
Financial crime makes up a substantial portion of all crime reported in the UK.  With increased economic downturn the likelihood is that more individuals will increase the amount of financial crime attempts. This poses a risk to Pixxles as this requires increased due diligence and staff training. The Company will ensure that all staff have more than adequate training to address these potential risks.

Financial key performance indicators
 
As 2022 was a soft-launch period for Pixxles with a revenue of £12,398, a large portion of expenses were attributed to marketing efforts to strengthen the brand and attract new customers, as well as software services that helped to build a strong Anti-Money Laundering framework and adhere to all regulatory compliance requirements. The Company’s Directors chose experienced firms and trusted, state-of-the-art technology infrastructure as an investment in the firm’s commitment to financial crime prevention. 
In addition, Pixxles saw consistent growth in newly onboarded merchants, as well as overall payments volume and activity.

Other key performance indicators
 
Pixxles dedicated significant resource to marketing activity, focusing primarily on brand recognition and attracting new customers. In doing so, Pixxles achieved:
• Significant increases in website traffic to www.pixxles.com
• Development of successful SEO campaigns
• Effective advertising campaigns, including social media and Google Adwords 

Page 2

 
PIXXLES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022

Directors' statement of compliance with duty to promote the success of the Company
 
The Directors of the business are actively aware that they must conduct themselves in a manner that promotes the best interests and well-being of the Company, and confidently adheres to its legal and regulatory framework. Pixxles sees the key stakeholders being:
Shareholders
With one of the Directors being the UBO, there is a constant and inherent dialogue, both amongst the Directors and throughout the business, to ensure the stability, growth and reputability of the business on a long-term basis.
Customers
The Company’s customer base will span between small business to large enterprises, but the general strategy will be targeting SMEs upon the launch of Pixxles’s services in the 2022 financial year. To effectively support these customers, the Company will prioritise its regulatory requirements an FCA authorised firm to protect both the customer and its end user, while promoting business practices that promote the well-being of all involved parties such as transparency and financial inclusion.
Suppliers
Pixxles has an extensive network of key suppliers and partnerships which are actively maintained and cultivated to ensure the optimal running of the business.  
 
Community
Pixxles continues to actively support and promote social causes that have a meaningful impact on communities throughout the UK. The Directors promote diversity throughout the business and cultivate a positive environment that encourages discussion of new ideas and promotion based on merit.


This report was approved by the board and signed on its behalf.



A L Fairchild
Director

Date: 26 October 2023

Page 3

 
PIXXLES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2022

The directors present their report and the financial statements for the year ended 31 October 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are 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, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Results and dividends

The loss for the year, after taxation, amounted to £1,156,529 (2021 - loss £954,463).

Directors

The directors who served during the year were:

A L Fairchild 
S A M Dawson (resigned 31 May 2022)
S B Kamaly (appointed 16 May 2022)

Future developments

Pixxles will continue to develop a prepaid card product throughout the 2023 financial year. In addition, Pixxles will continue to lay the groundwork for entering the European payments market.  These developments will support the continued growth of the Company’s merchant portfolio and allow revenues to increase without significant impact to variable costs. 

Page 4

 
PIXXLES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





A L Fairchild
Director

Date: 26 October 2023

Page 5

 
PIXXLES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIXXLES LIMITED
 

Opinion


We have audited the financial statements of Pixxles Limited (the 'Company') for the year ended 31 October 2022, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 October 2022 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
PIXXLES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIXXLES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 Strategic report or the Directors' 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
PIXXLES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIXXLES LIMITED (CONTINUED)


Auditors' 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 Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiring of management around actual and potential litigation and claims.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Enquiring of company staff in finance and compliance functions to identify any instances of non-compliance with laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
 
Page 8

 
PIXXLES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIXXLES LIMITED (CONTINUED)


Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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 2006Our 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 Auditors' 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.





Michael Wedge FCA (Senior statutory auditor)
  
for and on behalf of
BKL Audit LLP
 
Chartered Accountants
Statutory Auditor
  
London

27 October 2023
Page 9

 
PIXXLES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2022

2022
2021
Note
£
£

  

Turnover
 3 
12,398
-

Cost of sales
  
(84,242)
-

Gross (loss)/profit
  
(71,844)
-

Administrative expenses
  
(1,084,685)
(954,662)

Other operating income
  
-
199

Operating loss
 4 
(1,156,529)
(954,463)

Loss for the financial year
  
(1,156,529)
(954,463)

Other comprehensive income for the year
  

  

Total comprehensive income for the year
  
(1,156,529)
(954,463)

The notes on pages 14 to 21 form part of these financial statements.

Page 10

 
PIXXLES LIMITED
REGISTERED NUMBER: 11604773

STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2022

2022
2021
Note
£
£

  

Current assets
  

Debtors: amounts falling due within one year
 9 
240,611
53,750

Bank and cash balances
  
404,209
410,681

  
644,820
464,431

Creditors: amounts falling due within one year
 10 
(186,859)
(623,462)

Net current assets/(liabilities)
  
 
 
457,961
 
 
(159,031)

Total assets less current liabilities
  
457,961
(159,031)

  

Net assets/(liabilities)
  
457,961
(159,031)


Capital and reserves
  

Called up share capital 
 11 
3,510,733
1,737,212

Profit and loss account
  
(3,052,772)
(1,896,243)

  
457,961
(159,031)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A L Fairchild
Director

Date: 26 October 2023

The notes on pages 14 to 21 form part of these financial statements.

Page 11

 
PIXXLES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 November 2020
1,015,001
(941,780)
73,221


Comprehensive income for the year

Loss for the year
-
(954,463)
(954,463)
Total comprehensive income for the year
-
(954,463)
(954,463)

Shares issued during the year
722,211
-
722,211


Total transactions with owners
722,211
-
722,211



At 1 November 2021
1,737,212
(1,896,243)
(159,031)


Comprehensive income for the year

Loss for the year
-
(1,156,529)
(1,156,529)
Total comprehensive income for the year
-
(1,156,529)
(1,156,529)


Contributions by and distributions to owners

Shares issued during the year
1,773,521
-
1,773,521


Total transactions with owners
1,773,521
-
1,773,521


At 31 October 2022
3,510,733
(3,052,772)
457,961


The notes on pages 14 to 21 form part of these financial statements.

Page 12

 
PIXXLES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2022

2022
2021
£
£

Cash flows from operating activities

Loss for the financial year
(1,156,529)
(954,462)

Adjustments for:

(Increase) in debtors
(186,862)
(20,812)

(Decrease)/increase in creditors
(436,603)
543,664

Net cash generated from operating activities

(1,779,994)
(431,610)



Cash flows from financing activities

Issue of ordinary shares
1,773,521
722,211

Net cash used in financing activities
1,773,521
722,211

Net (decrease)/increase in cash and cash equivalents
(6,473)
290,601

Cash and cash equivalents at beginning of year
410,682
120,081

Cash and cash equivalents at the end of year
404,209
410,682


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
404,209
410,682

404,209
410,682


The notes on pages 14 to 21 form part of these financial statements.

Page 13

 
PIXXLES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

1.


General information

The principal activity of Pixxles Limited  ("the Company") is that of financial payment services.
The Company is a private company limited by shares and is incorporated in England and Wales.
The Registered Office address is Cannon Place, 78 Cannon Street, London, United Kingdom, EC4N 6AF.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on the going concern basis which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of the approval of these financial statements, and will be able to meet its debt as they fall due.
During the year, the Company started to trade under its new regulatory permissions. The directors have confirmed through a letter of support that they will continue to provide access to funding to support the growth phase of the business. The directors continuously review forecasts and are confident in the Company's ability to trade for the forseeable future.

Page 14

 
PIXXLES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

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. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 15

 
PIXXLES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessee

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.

 
2.6

Pensions

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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Cash and cash equivalents

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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.8

Financial instruments

The Company only enters basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
(i) Financial assets
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income. 
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
 
Page 16

 
PIXXLES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)


2.8
Financial instruments (continued)

(ii) Financial liabilities
Basic financial liabilities, including trade creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled, or expires. 
(iii) Offsetting
Financial assets and liabilities are offset, and 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. 

 
2.9

Client Money

The Company holds monies on behalf of clients in accordance with the Electronic Money Regulations of its regulator, the Financial Conduct Authority. Client monies held in safeguarded bank and settlement accounts in accordance with the regulations and the corresponding liabilites to these clients are not recognised on the Statement of Financial Position. As at 31 October 2022, amounts held in accordance with the Electronic Money Regulations amounted to €Nil (31 October 2021: €Nil). 


3.


Turnover

All turnover arose within the United Kingdom.


4.


Operating loss

The operating loss is stated after charging:

2022
2021
£
£

Exchange differences
4,781
-

Other operating lease rentals
38,281
26,446

Page 17

 
PIXXLES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

5.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2022
2021
£
£

Fees payable to the Company's auditors and their associates in respect of:

Audit-related assurance services
21,000
10,000

All non-audit services not included above
1,750
-

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2022
2021
£
£

Wages and salaries
244,720
394,731

Social security costs
26,844
47,234

Cost of defined contribution scheme
1,392
3,040

272,956
445,005


The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Average number of employees
3
5


7.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
107,739
80,045

Company contributions to defined contribution pension schemes
1,211
660

108,950
80,705


Page 18

 
PIXXLES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

8.


Taxation


2022
2021
£
£



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


Tax on loss
-
-

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Loss on ordinary activities before tax
(1,156,529)
(954,463)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(219,741)
(181,348)

Effects of:


Unrelieved tax losses carried forward
219,741
181,348

Total tax charge for the year
-
-


Factors that may affect future tax charges

The UK Government announced its intention to increase the rate of UK corporation tax from 19% to 25%
with effect from 1 April 2023. The increase in the rate of UK corporation tax was enacted in the Finance
Act 2021 which received Royal Assent on 10 June 2021.


9.


Debtors

2022
2021
£
£


Other debtors
204,937
13,733

Prepayments and accrued income
35,674
40,017

240,611
53,750

Page 19

 
PIXXLES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

9.Debtors (continued)



10.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
95,736
72,244

Other taxation and social security
43,525
91,431

Other creditors
24,118
440,162

Accruals and deferred income
23,480
19,625

186,859
623,462



11.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



3,510,733 (2021 - 1,737,212) Ordinary shares of £1.00 each
3,510,733
1,737,212


On 24 March 2022, the Company issued 1,073,521 Ordinary shares of £1 each at par.
On 14 October 2022, the Company issued a further 700,000 Ordinary shares of £1 each at par.


12.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £1,392 (2021 - £2,522) . Contributions totalling £Nil (2021 - Nil) were payable to the fund at the reporting date and are included in creditors.


13.


Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the reporting date.


14.


Related party transactions

Included within other debtors is a balance of £165,445 (2021: £440,162) due from one of the directors. This balance is unsecured and interest free and is repayable on demand.

Page 20

 
PIXXLES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

15.


Controlling party

The ultimate controlling party is A Fairchild.

 
Page 21