Registered number: 04101267
DIGITAL VIRGO UK LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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DIGITAL VIRGO UK LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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DIGITAL VIRGO UK LIMITED
CONTENTS
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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DIGITAL VIRGO UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Directors present their report and the financial statements for the year ended 31 December 2022.
Directors' responsibilities statement
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The Directors are responsible for preparing 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 101 ‘Reduced Disclosure Framework’. 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 and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙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 2006. They 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.
The loss for the year, after taxation, amounted to £66,142 (2021 - profit £108,203).
The Company does not propose any dividends (2021 - £Nil).
The Directors who served during the year were:
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F A Lefebvre (resigned 29 April 2022)
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E J Tiberghein (appointed 29 April 2022)
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Basis other than going concern
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As set out within note 2.3 to the financial statements the Directors have concluded that it is appropriate to prepare the financial statements on a basis other than a going concern basis as the Directors intend for the Company to cease trading in the next 12 months.
Qualifying third party indemnity provisions
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As at the date of this Report, and throughout the whole period, the Company made qualifying third party indemnity provisions for the benefit of all of its Directors.
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DIGITAL VIRGO UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Disclosure of information to auditor
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Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the Directors are aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the Director have 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 auditor is aware of that information.
Post balance sheet events
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In July 2023, share capital of £515,900 and share premium of £2,665,452 was cancelled by the Company against accumulated losses.
Pursuant to the Company's audit tender process, Mazars LLP resigned as the Company's independent auditor following the approval of the Company's report and accounts for the year ended 31 December 2022. Albert Goodman LLP were subsequently appointed and have expressed their willingness to continue in office as auditor, Albert Goodman LLP will be deemed to be reappointed under section 487(2).
In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DIGITAL VIRGO UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIGITAL VIRGO UK LIMITED
Opinion
We have audited the financial statements of Digital Virgo UK Limited (“the Company”) for the year ended 31 December 2022 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 “Reduced Disclosure Framework” (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 December 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 Auditor’s responsibilities for the audit of the financial statements section of our report below. 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.
Emphasis of matter
We draw your attention to note 2 to the financial statements which explains that following the year end the Directors have elected to cease trading in the next 12 months. The Directors do not consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than the going concern basis as described in note 2.
Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon.
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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
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DIGITAL VIRGO UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIGITAL VIRGO UK LIMITED
Opinions 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has been prepared in accordance with applicable legal requirements.
In 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 Directors' Report.
Matters on which we are required to report by exception
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; or
∙the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Directors' Report and from the requirement to prepare a Strategic Report.
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.
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.
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.
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DIGITAL VIRGO UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIGITAL VIRGO UK LIMITED
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:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙We identified the laws and regulations applicable to the Company through discussions with Directors and other management, and from our commercial knowledge and experience of the sector;
∙We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation;
∙We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
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 management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
• investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to actual and potential litigation and claims; and
• reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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DIGITAL VIRGO UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIGITAL VIRGO UK LIMITED
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s website at: https://www.frc.org.uk /auditorsresponsibilities. This description forms part of our auditor's report.
Use of the audit 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.
Christopher Walford (Senior statutory auditor)
for and on behalf of
Albert Goodman LLP
Chartered Accountants and Statutory Auditor
Goodwood House
Blackbrook Park Avenue
TA1 2PX
16 November 2023
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DIGITAL VIRGO UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
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Interest receivable and similar income
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Interest payable and similar expenses
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(Loss)/profit for the financial year
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There was no other comprehensive income for 2022 or 2021.
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The notes on pages 10 to 23 form part of these Financial Statements.
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DIGITAL VIRGO UK LIMITED
REGISTERED NUMBER: 04101267
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
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Debtors: amounts falling due within one year
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Cash and cash equivalents
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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 Company's Financial Statements have been prepared in accordance with the provisions applicable to entities 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:
The notes on pages 10 to 23 form part of these Financial Statements.
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DIGITAL VIRGO UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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Comprehensive income for the year
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Total comprehensive income for the year
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
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Comprehensive income for the year
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Total comprehensive income for the year
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Transfers to profit and loss account
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The notes on pages 10 to 23 form part of these Financial Statements.
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The non-statutory share option and other reserves balances as at 31 December 2021 have been transferred to the profit and loss account reserve which has reduced the value of the accumulated losses.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Digital Virgo UK Limited ("the Company") is a private company, limited by shares, registered in England and Wales and incorporated in the United Kingdom. The address of the Company's registered office is 30 Old Bailey, London, EC4M 7AU.
The Company's registered number is 04101267.
The Company's principal activity is that of delivering advertising agency services, which consists of developing and managing applications and services for the 'mobile' ecosystem, offering digital entertainment to consumers via mobile phones and tablets.
These Financial Statements have been presented in Pounds Sterling (£), this being the functional currency of the Company and the currency of its primary economic environment.
Monetary amounts included within these Financial Statements have been rounded to the nearest whole £.
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 Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.
The preparation of Financial Statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied consistently:
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Financial Reporting Standard 101 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
- paragraph 118(e) of IAS 38 Intangible Assets;
- paragraphs 76 and 79(d) of IAS 40 Investment Property; and
∙the requirements of IAS 7 Statement of Cash Flows
This information is included in the consolidated group financial statements of Digital Virgo Sa as at 31 December 2022 and these financial statements may be obtained from 88 rue Paul Bert, 69003, Lyon, France.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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Basis other than going concern
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As the Company will cease to trade in the next 12 months the Directors have deemed it appropriate to prepare the financial statements on a basis other than a going concern basis. All assets have therefore been adjusted to reflect their expected net realisable value. As the Company has continued to trade since the year end the Directors have elected not to accrue for future trading costs or income, but have assessed the funding requirements and are confident that the Company will be able to meet all current and future liabilities as they fall due. The Directors have also obtained confirmation that the Group will provide support if required.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is Pounds Sterling (£).
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 the Statement of Comprehensive Income 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 the Statement of Comprehensive Income within 'other operating income'.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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Foreign currency translation (continued)
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Foreign exchange gains and losses arising on both Amounts owed by group undertakings (note 12) and Amounts owed to group undertakings (note 14) are presented in the Statement of Comprehensive Income within both "interest receivable and similar income" (note 8) and "interest payable and similar expenses" (note 9).
Revenue arises mainly from the sale of services relating to the management and implementation of aid programs.
To determine whether to recognise revenue, the Company follows a 5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied
Due to the high degree of interdependence between the various elements of these programs, in most cases each program is accounted for as a single performance obligation.
Revenue is recognised over time when (or as) the Company satisfies performance obligations by transferring the promised goods or services to its customers.
The Company recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as contract liabilities in the Statement of Financial Position. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognises either a contract asset or a receivable in its Statement of Financial Position, depending on whether something other than the passage of time is required before the consideration is due.
All revenue is stated net of value added tax (VAT).
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Unlisted investments are measured at fair value through profit and 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.
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
All of the Company's financial assets are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in the Statement of Comprehensive Income to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in the Statement of Comprehensive Income includes any dividend or interest earned on the financial asset.
Impairment of financial assets
The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
Financial liabilities
Fair value through profit or loss
Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in the Statement of Comprehensive Income to the extent that they are not part of a designated hedging relationship.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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Financial instruments (continued)
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At amortised cost
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In applying the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The Directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Company's accounting policies
None of the accounting policy judgements applied in the year are considered to be critical judgements.
Key sources of estimation uncertainty
The key sources of estimation uncertainty, that have a risk of causing an adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Recoverability of trade receivables
The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history including the credit rating of the customer, ageing profile and existing market conditions, as wells as forward-looking estimates at the end of each reporting period.
As at 31 December 2022, expected credit losses of £Nil were recognised against trade receivables (31 December 2021 - £9,795).
As at 31 December 2022, expected credit losses of £Nil were recognised against amounts due from group undertakings (31 December 2021 - £23,435).
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
3.Judgements in applying accounting policies (continued)
Valuation of investments
Unlisted minority investments are held at fair value through profit and loss. The valuation is derived from a number of factors including net asset value and future value in use. The Company uses judgement in making these assumptions and selecting the inputs to the valuation.
There are no other key sources of estimation uncertainty which require disclosure.
Provision for closure
The Company has adjusted assets to reflect their net realisable value but as the Company has continued to trade since the year end no provisions have been made for future closure costs.
There are no other key sources of estimation uncertainty which require disclosure.
Analysis of turnover by country of destination:
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Fees payable to the Company's auditor in respect of the audit of the
Company's annual Financial Statements
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Fees payable to the Company's auditor in respect of all other services
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The average monthly number of employees, excluding Directors, during the period was Nil (31 December 2021 - Nil).
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Interest receivable and similar income
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Interest payable and similar expenses
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Intercompany interest payable
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Current tax on profits for the year
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
10.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:
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(Loss)/profit on ordinary activities before tax
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(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
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Expenses not deductible for tax purposes,
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Movement in deferred tax not recognised
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Remeasurement of deferred tax for changes in tax rates
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Total tax charge for the year
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After taking into account accelerated capital allowances, the Company has gross potential temporary differences of £5,411,139 (2021 - £5,361,888), representing tax losses available to offset against future profits and other short term timing differences according to legislation. This equates to an unrecognised deferred tax asset in relation to continuing operations of £1,352,785 (2021 - £1,340,472) at a tax rate of 25% (2021 - 25%).
No deferred tax assets have been recognised in these Financial Statements as there is insufficient certainty as to the incidence and timing of future taxable profits against which the losses might be offset.
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Factors that may affect future tax charges
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The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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The Company has shares in group undertakings as follows:
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Novoslobodskaya str., 23, 127055, Moscow, Russian Federation
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Prepayments and accrued income
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Amounts owed by group undertakings are trading balances. These amounts are unsecured, interest free and repayable within 1 year.
As at 31 December 2022, a provision of £Nil was recognised against trade receivables (2021 - £9,795).
As at 31 December 2022, a provision of £Nil was recognised against amounts due from group undertakings (2021 - £23,435).
Prepayments and accrued income are a mix of intercompany and third party balances.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings (note 17)
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are trading balances. These amounts are unsecured, interest free and repayable within 1 year.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Allotted, called up and fully paid
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516,000 (31 December 2021 - 516,000) ordinary shares of £1.00 each
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All ordinary shares rank pari passu in all respects.
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Share premium
The share premium reserve represents the excess of the issue price over the par value on shares that were issued, less any transaction costs arising with the issue of the shares.
Share option reserve
The share option reserve of £203,971 relates to the net movement in the share option debits and credits arising from the year ended 31 December 2006 on the transition to FRS 20 - share based payments (now IFRS 2 - share based payments). The movements on the share options ceased at the year ended 31 December 2012 on the cessation of the share options.
Other reserves
On 4 March 2020 the direct Parent Company, Docomo Digital Italy, rebalanced the equity of the Company using:
- Three long term loans and related interests for a total amount of £7,583,773;
- Buying two long term loans that the Company owed to its sister company, Docomo Digital Finance CH, for a total amount of £1,239,030.
All the waived funds have been classified among other reserves for £8,830,262 (2021 - £8,830,262).
Accumulated losses
Accumulated losses represent the cumulative losses of the Company.
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Related party transactions
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The Company has claimed exemptions from the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
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Post balance sheet events
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In July 2023, share capital of £515,900 and share premium of £2,665,452 was cancelled by the Company against accumulated losses.
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DIGITAL VIRGO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Parent undertaking and controlling party
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The immediate and ultimate parent undertaking and largest undertaking to prepare consolidated Financial Statements is Digital Virgo Sa. Consolidated Financial Statements are publicly available from the parent company's registered office.
Digital Virgo Sa is a public limited company, with a share capital of EUR 55,794,060. The Company is registered in the Lyon Trade and Companies Registrar, registration number 821 560 455, and its registered office is 88 rue Paul Bert, 69003, Lyon, France.
The Company's ultimate controlling party is the Peyre family.
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