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Registration number: 11972051

Penny Limited

Unaudited Filleted Abridged Financial Statements

for the Year Ended 31 May 2023

 

Penny Limited

Contents

Company Information

1

Abridged Balance Sheet

2 to 3

Notes to the Unaudited Abridged Financial Statements

4 to 11

 

Penny Limited

Company Information

Chairman

Mr Peter Tuvey

Directors

Miss Vaida Narbutaite

Mr Daniel McPherson

Mr Paul Friedlander

Mr Mark Tuvey

Registered office

Archibald House
50-56 Wykes Bishop Street
Ipswich
IP3 0DT

Accountants

Liquid Friday Limited

 

Penny Limited

(Registration number: 11972051)
Abridged Balance Sheet as at 31 May 2023

Note

2023
£

(As restated)

2022
£

Fixed assets

 

Intangible assets

4

153,626

100,277

Tangible assets

5

7,388

3,918

Investments

6

1

1

 

161,015

104,196

Current assets

 

Debtors

7

3,898,799

2,577,077

Cash at bank and in hand

 

384,082

1,572,129

 

4,282,881

4,149,206

Prepayments and accrued income

 

1,821

552

Creditors: Amounts falling due within one year

(182,308)

(116,639)

Net current assets

 

4,102,394

4,033,119

Total assets less current liabilities

 

4,263,409

4,137,315

Creditors: Amounts falling due after more than one year

(4,236,950)

(5,766,959)

Accruals and deferred income

 

(1,481,019)

(515,863)

Net liabilities

 

(1,454,560)

(2,145,507)

Capital and reserves

 

Called up share capital

8

507

127

Share premium reserve

1,599,616

99,996

Retained earnings

(3,054,683)

(2,245,630)

Shareholders' deficit

 

(1,454,560)

(2,145,507)

For the financial year ending 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

 

Penny Limited

(Registration number: 11972051)
Abridged Balance Sheet as at 31 May 2023

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

All of the company’s members have consented to the preparation of an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 23 February 2024 and signed on its behalf by:
 

.........................................
Miss Vaida Narbutaite
Director

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Archibald House
50-56 Wykes Bishop Street
Ipswich
IP3 0DT
England

These financial statements were authorised for issue by the Board on 23 February 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These abridged financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are prepared in pounds sterling which is the functional currency of the Company and are rounded to the nearest £.

Going concern

Notwithstanding the loss for the year and the net liabilites of the Company, the Directors believe that the company will be able to meet its liabilities as they fall due for at least 12 months from the date of approving the financial statements. This is on the basis of the introduction of additional funding lines post year end and the preperation of medium term forecasts and cashflow projections which demonstrate that under a range of reasonable scenarios the business has sufficient liquidity. On this basis the accounts have been prepared on a going concern basis.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

There are no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies that have any significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year..

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

For the monthly JRS grant income, the income is recognised in the period to which the underlying furloughed staff costs relate to. The payroll liability has been incurred by the entity, and it has therefore met the conditions to claim for that payroll accounting period.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also
recognised directly in other comprehensive income.

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 group operates and generates taxable
income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture and fittings

4 years straight line

Office equipment

4 years straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Development costs

Intangible assets are initially recognised at costs. After recognition, under the costs model, intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value. No amoitisation is provided until the project that the costs related to is complete or has ceased. Amortisation is provided over their useful life as follows:

Asset class

Amortisation method and rate

Capitalised development costs

4 years straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade and other debtors/creditors are recognised initially at the transaction price less attributable transaction costs. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment for any losses for trade debtors. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
If the arrangement constitutes a financing arranagement, for example if deferred beyond normal business terms, then it is measured at the present value of the future payments discounted at a market rate of instruments for a similar debt instrument.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

Financial instruments

Classification
The Company only enters into basic financial instruments that result in the recognition of financial assets and liabilites such as are described in trade and other debtors and payables
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 15 (2022 - 11).

4

Intangible assets

Total
£

Cost or valuation

At 1 June 2022

200,553

Additions internally developed

123,950

At 31 May 2023

324,503

Amortisation

At 1 June 2022

100,277

Amortisation charge

70,600

At 31 May 2023

170,877

Carrying amount

At 31 May 2023

153,626

At 31 May 2022

100,277

The amount of research and development expenditure capitalised in the year was £123,950 (2022: Nil) and is included in the internally generated software costs above.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

5

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 June 2022

4,133

4,133

Additions

5,742

5,742

At 31 May 2023

9,875

9,875

Depreciation

At 1 June 2022

215

215

Charge for the year

2,272

2,272

At 31 May 2023

2,487

2,487

Carrying amount

At 31 May 2023

7,388

7,388

At 31 May 2022

3,918

3,918

6

Investments

Total
£

Cost or valuation

At 1 June 2022

1

Provision

Carrying amount

At 31 May 2023

1

At 31 May 2022

1

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

2023
£

2022
£

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Penny Freedom Limited

The Port House Marina Keep
Port Solent
Portsmouth
Hampshire
PO6 4TH

England

Ordinary

100%

100%

Subsidiary undertakings

Penny Freedom Limited

The principal activity of Penny Freedom Limited is that of a dormant company.

7

Debtors

Debtors includes £100,000 (2022 - £Nil) due after more than one year.

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £0.01 each

50,692

507

12,673

127

         
 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2023

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of contingencies not included in the balance sheet is £Nil (2022 - £Nil).

10

Related party transactions

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

66,561

30,000

Contributions paid to money purchase schemes

937

772

67,498

30,772