DZING FINANCE LTD

Company Registration Number:
11380591 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2022

Period of accounts

Start date: 1 January 2022

End date: 31 December 2022

DZING FINANCE LTD

Contents of the Financial Statements

for the Period Ended 31 December 2022

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

DZING FINANCE LTD

Directors' report period ended 31 December 2022

The directors present their report with the financial statements of the company for the period ended 31 December 2022

Additional information

The directors present their report and the financial statements for the year ended 31 December 2022.Directors' responsibilities statementThe directors are responsible for preparing the Strategic report, the Directors' report and the financial statementsin accordance with applicable law and regulations.Company law requires the directors to prepare financial statements for each financial year. Under that law thedirectors have elected to prepare the financial statements in accordance with applicable law and United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial ReportingStandard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under companylaw the directors must not approve the financial statements unless they are satisfied that they give a true and fairview 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 themconsistently; - 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 theCompany 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.Results and dividends The loss for the year, after taxation, amounted to £5,868,086 (2021 - loss £3,212,753).No dividend was paid during the year.DirectorsThe directors who served during the year were:T OrlovaJ R Mullan (resigned 31 December 2022)S T A Driver (appointed 1 November 2022)M S Nadel (appointed 1 November 2022)Future developmentsLooking to the future Dzing Finance Ltd plans to continue to progress our corporate customer business and alsoreinvigorate our retail customer business once the FCA Section 166 audits are concluded and any requiredaction items are addressed. The company sees growth potential in the EMI market as the regulatory challenges effecting the market enable a differentiator in controls to assist commercial progress with more risk conscious business partners.Corporate governance enhancements and other structural changes in ownership potentially will be viewed as positive in possibly enabling further increased investment and benefits of more synergies with the other companies within the group of the investor.The group companies of the investor may also enable diversification into other product lines, which will be done after a through cost benefit analysis exercise and also often suitable testing of product designs to ensure compliance with FCA consumer duty obligations.Similarly, it is planned for greater collaboration with external partners in the development of the IT platform and infrastructure to accelerate the optimisation of the IT system to support the business in a cost efficient manner.Engagement with suppliers, customers and othersDzing Finance Ltd is cooperating with a number of well known industry suppliers in order to provide a high qualityservice for the company’s clients. The company perceives these are established cooperations based on themost suitable technical solutions.Dzing Finance Ltd supports a communication with customers via mobile application, chat and email. All theimportant news are sent through email, other useful information can be found on the company’s web-page.Information on web-page and in mobile app is constantly updated providing clients with the latest terms ofservice.Post balance sheet eventsPost year end the company entered into a voluntary undertaking with the FCA, as part of which it has restrictedits activities whilst improvements to systems are made. These restrictions will reduce the potential of thebusiness to trade whilst they are in force. However, although the directors acknowledge that these restrictions will impact trading, they believe that the company remains a going concern due to the company's unrestrictedcommercial trading and the continued support of its shareholders.



Directors

The director shown below has held office during the period of
1 November 2022 to 31 December 2022

Stuart Driver


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
20 December 2023

And signed on behalf of the board by:
Name: Stuart Driver
Status: Director

DZING FINANCE LTD

Profit And Loss Account

for the Period Ended 31 December 2022

2022 2021


£

£
Turnover: 405,432 184,290
Cost of sales: ( 665,323 ) ( 233,211 )
Gross profit(or loss): (259,891) (48,921)
Distribution costs: 0 0
Administrative expenses: ( 5,625,696 ) ( 3,166,584 )
Other operating income: 0 0
Operating profit(or loss): (5,885,587) (3,215,505)
Interest receivable and similar income: 17,607 3,706
Interest payable and similar charges: ( 106 ) ( 954 )
Profit(or loss) before tax: (5,868,086) (3,212,753)
Tax: 0
Profit(or loss) for the financial year: (5,868,086) (3,212,753)

DZING FINANCE LTD

Balance sheet

As at 31 December 2022

Notes 2022 2021


£

£
Fixed assets
Intangible assets: 3 241,255 109,236
Tangible assets: 4 101,735 13,053
Total fixed assets: 342,990 122,289
Current assets
Debtors: 5 1,651,378 611,615
Cash at bank and in hand: 1,552,574 2,449,387
Total current assets: 3,203,952 3,061,002
Creditors: amounts falling due within one year: 6 ( 2,973,417 ) ( 2,331,680 )
Net current assets (liabilities): 230,535 729,322
Total assets less current liabilities: 573,525 851,611
Total net assets (liabilities): 573,525 851,611
Capital and reserves
Called up share capital: 13,180,972 1,278,659
Share premium account: 6,312,313
Profit and loss account: (12,607,447 ) (6,739,361 )
Total Shareholders' funds: 573,525 851,611

The notes form part of these financial statements

DZING FINANCE LTD

Balance sheet statements

For the year ending 31 December 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

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

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 20 December 2023
and signed on behalf of the board by:

Name: Stuart Driver
Status: Director

The notes form part of these financial statements

DZING FINANCE LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Revenue recognitionRevenue is recognised when control of the services provided are transferred to the customer. The amount of revenue to be recognised is the amount that the company expects to be entitled to inexchange for these services. Revenue is recognised over time if it is expected that the performanceobligations specified in the contract will be satisfied over time or revenue is recognised at a point intime when the performance obligations specified in the contract have been provided to the customer.Rendering of servicesThe company recognises revenue over time if any of the following criteria are met:- the customer concurrently receives and consumes the benefits provided by the entity as theentity performs its obligation.- the entity creates or enhances a customer-controlled asset; and- the entity does not create an asset with an alternative use, and the entity has a right to paymentfor performance completed to dateOtherwise, revenue is recognised at a point in time when control is transferred for performanceobligations that do not meet the criteria for recognition of revenue over time.

    Tangible fixed assets depreciation policy

    Tangible fixed assetsTangible fixed assets under the cost model are stated at historical cost less accumulateddepreciation and any accumulated impairment losses. Historical cost includes expenditure that isdirectly attributable to bringing the asset to the location and condition necessary for it to be capable ofoperating in the manner intended by management.Depreciation is charged so as to allocate the cost of assets less their residual value over theirestimated useful lives, using the straight-line method.Depreciation is provided on the following basis:Office equipment - 33%The assets' residual values, useful lives and depreciation methods are reviewed, and adjustedprospectively if appropriate, or if there is an indication of a significant change since the last reportingdate.Gains and losses on disposals are determined by comparing the proceeds with the carrying amountand are recognised in profit or loss.

    Intangible fixed assets amortisation policy

    Intangible assetsIntangible assets are initially recognised at cost. After recognition, under the cost model, intangibleassets are measured at cost less any accumulated amortisation and any accumulated impairmentlosses.All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful lifecannot be made, the useful life shall not exceed ten years.

    Other accounting policies

    Foreign currency translationFunctional and presentation currencyThe Company's functional and presentational currency is GBP.Transactions and balancesForeign currency transactions are translated into the functional currency using the spot exchangerates at the dates of the transactions.At each period end foreign currency monetary items are translated using the closing rate. Nonmonetaryitems measured at historical cost are translated using the exchange rate at the date of thetransaction and non-monetary items measured at fair value are measured using the exchange ratewhen fair value was determined.Operating leases: the Company as lesseeRentals paid under operating leases are charged to profit or loss on a straight-line basis over thelease term. Interest incomeInterest income is recognised in profit or loss using the effective interest method.Finance costsFinance costs are charged to profit or loss over the term of the debt using the effective interestmethod so that the amount charged is at a constant rate on the carrying amount. Issue costs areinitially recognised as a reduction in the proceeds of the associated capital instrument.PensionsDefined contribution pension planThe Company operates a defined contribution plan for its employees. A defined contribution plan is apension plan under which the Company pays fixed contributions into a separate entity. Once thecontributions have been paid the Company has no further payment obligations.The contributions are recognized as an expense in profit or loss when they fall due. Amounts not paidare shown in accruals as a liability in the Statement of financial position. The assets of the plan areheld separately from the Company in independently administered funds.TaxationTax is recognised in profit or loss except that a charge attributable to an item of income and expenserecognised as other comprehensive income or to an item recognised directly in equity is alsorecognised 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 operatesand generates income.DebtorsShort-term debtors are measured at transaction price, less any impairment. Loans receivable aremeasured initially at fair value, net of transaction costs, and are measured subsequently at amortisedcost using the effective interest method, less any impairment.Cash and cash equivalentsCash is represented by cash in hand and deposits with financial institutions repayable without penaltyon notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in nomore than three months from the date of acquisition and that are readily convertible to knownamounts 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 arerepayable on demand and form an integral part of the Company's cash management.CreditorsShort-term creditors are measured at the transaction price. Other financial liabilities, including bankloans, are measured initially at fair value, net of transaction costs, and are measured subsequently atamortized cost using the effective interest method.Financial instrumentsThe Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS102 to all of its financial instruments.The Company has elected to apply the recognition and measurement provisions of IFRS 9 FinancialInstruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections11 and 12 and the other presentation requirements of FRS 102.Financial instruments are recognized in the Company's Statement of financial position when theCompany becomes party to the contractual provisions of the instrument.Financial assets and liabilities are offset, with the net amounts presented in the financial statements,when there is a legally enforceable right to set off the recognised amounts and there is an intention tosettle on a net basis or to realise the asset and settle the liability simultaneously.Basic financial assetsBasic financial assets, which include trade and other receivables, cash and bank balances, areinitially measured at their transaction price including transaction costs and are subsequently carriedat their amortised cost using the effective interest method, less any provision for impairment, unlessthe arrangement constitutes a financing transaction, where the transaction is measured at thepresent value of the future receipts discounted at a market rate of interest.Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cashequivalents, trade and most other receivables due with the operating cycle fall into this category offinancial instruments.Financial liabilitiesFinancial liabilities and equity instruments are classified according to the substance of the contractualarrangements entered into. An equity instruments any contract that evidences a residual interest inthe assets of the Company after the deduction of all its liabilities.Basic financial liabilities, which include trade and other payables, bank loans and other loans areinitially measured at their transaction price after transaction costs. When this constitutes a financingtransaction, whereby the debt instrument is measured at the present value of the future receiptsdiscounted at a market rate of interest. Discounting is omitted where the effect of discounting isimmaterial.Debt instruments are subsequently carried at their amortised cost using the effective interest ratemethod.Trade payables are obligations to pay for goods and services that have been acquired in the ordinarycourse of business from suppliers. Trade payables are classified as current liabilities if the payment isdue within one year. If not, they represent non-current liabilities. Trade payables are initiallyrecognised at their transaction price and subsequently are measured at amortised cost using theeffective interest method. Discounting is omitted where the effect of discounting is immaterial.

DZING FINANCE LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

  • 2. Employees

    2022 2021
    Average number of employees during the period 20 13

DZING FINANCE LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

3. Intangible assets

Goodwill Other Total
Cost £ £ £
At 1 January 2022 227,005 227,005
Additions 182,706 182,706
Disposals
Revaluations
Transfers
At 31 December 2022 409,711 409,711
Amortisation
At 1 January 2022 117,769 117,769
Charge for year 50,687 50,687
On disposals
Other adjustments
At 31 December 2022 168,456 168,456
Net book value
At 31 December 2022 241,255 241,255
At 31 December 2021 109,236 109,236

DZING FINANCE LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

4. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 January 2022 24,169 24,169
Additions 97,709 97,709
Disposals
Revaluations
Transfers
At 31 December 2022 121,878 121,878
Depreciation
At 1 January 2022 11,116 11,116
Charge for year 9,027 9,027
On disposals
Other adjustments
At 31 December 2022 20,143 20,143
Net book value
At 31 December 2022 101,735 101,735
At 31 December 2021 13,053 13,053

DZING FINANCE LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

5. Debtors

2022 2021
£ £
Trade debtors 35,518 3,606
Prepayments and accrued income 126,289 12,979
Other debtors 1,489,571 595,030
Total 1,651,378 611,615
Debtors due after more than one year: 616,774 458,167

DZING FINANCE LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

6. Creditors: amounts falling due within one year note

2022 2021
£ £
Trade creditors 636,324 59,614
Taxation and social security 65,873 231,378
Accruals and deferred income 60,000 79,706
Other creditors 2,211,220 1,960,982
Total 2,973,417 2,331,680