Company Registration No. 08267810 (England and Wales)
365 BUSINESS FINANCE LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
365 BUSINESS FINANCE LIMITED
COMPANY INFORMATION
Directors
Mr A D Raphaely
Mr A B H Fisher
Mr B G Gishen
Mr R Polatinsky
Mr G Kurland
Company number
08267810
Registered office
13-15 Rosemont Road
London
NW3 6NG
Auditor
Goldwins Limited
75 Maygrove Road
West Hampstead
London
NW6 2EG
365 BUSINESS FINANCE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group and company balance sheets
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 33
365 BUSINESS FINANCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -

The directors present the strategic report for the year ended 30 April 2023.

 

The Business Model

The company is a private limited company and registered in England and Wales under the Companies Act 2006. 365 Business Finance was launched in 2014 with a focus on expanding the provision of revenue-based finance to the SME market. The company has built an advanced underwriting platform to service growing demand from SMEs, utilizing the latest technology in credit, underwriting, compliance and data science.

The company provides finance to SMEs and receives repayments as a split of its clients’ daily card terminal transactions. As repayments from clients are contingent on their own customer sales, the performance of the company and its clients is aligned.

Principal activities

The principal activity of the company and group is to provide revenue-based finance to SMEs across the United Kingdom.

Review of the business

The company's directors are satisfied with the results and financial position at the year end. Key developments in the year included:

 

Key performance indicators

The company uses a range of performance measures to monitor and manage the business effectively. The most significant of these are key performance indicators.

The main performance indicators for the year ended 30 April 2023 are as below:

 

2023

2022

Change

Revenue

£18.6m

£10.1m

84%

Profit before tax

£0.8m

£1.4m

(40%)

 

Future developments

The Company aims to make progress in the following areas in the 2023-2024 financial year:

365 BUSINESS FINANCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
Principal risks and uncertainties

Credit risk

The credit risk of the company is related to negative developments in the macroeconomic environment of UK SMEs. As the company’s product is dependent on sales-based repayments, a negative development in the macroeconomic environment would affect clients’ ability to trade at previous levels.

There is continuous development of the underwriting platform and credit risk algorithms by the underwriting and data science teams. This ensures the company is well placed to understand its credit risk exposure at any given time.

Regulatory risk

The company is subject to laws, regulations, policies and legal interpretations in the markets in which it operates. The legal and regulatory requirements applicable to the company are frequently changing.

The directors maintain compliance by reviewing systems, controls, and processes continuously. This ensures best practices against any regulatory requirements that could arise in the future.

Technological risk

There is a risk that the company may face threats of cybersecurity breaches, computer viruses, system failures, failure by employees and third-party providers to follow correct procedures that could negatively impact the company’s ability to trade or maintain the security of its operating systems. This can result in interruptions in the availability of the underwriting platform, product or services and expose the company to liability and / or damage to its reputation. To mitigate this risk, the company continuously seeks to enhance and strengthen both its processes and technology against such threats, and the company is in the process of gaining ISO27001 certification.

Macroeconomic risk

Geo-political tensions have been high since the start of the war in Ukraine. This has contributed to higher inflation and interest rates, the impact of which is continuously monitored.

Capital management risk

Capital management risks relate to the performance of the company’s customers. Negative developments could result in lower funding capabilities if certain financial covenants are breached.

The principal financial risks and uncertainties faced by the company are:

On behalf of the board

Mr A D Raphaely
Director
21 March 2024
365 BUSINESS FINANCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2023.

Results and dividends

The results for the year are set out on page 8.

 

During the year, the Group changed its accounting policy governing turnover, transaction costs and basic financial instruments. As a result, the Group’s financial assets are now recognised under amortised cost using the effective interest rate method. This has resulted in prior year adjustments which have been presented in the results.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A D Raphaely
Mr A G Raphaely
(Resigned 17 September 2022)
Mr A B H Fisher
Mr B G Gishen
Mr R Polatinsky
Mr G Kurland
Auditor

In accordance with the company's articles, a resolution proposing that Goldwins Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

365 BUSINESS FINANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A D Raphaely
Director
21 March 2024
2024-04-08
365 BUSINESS FINANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 365 BUSINESS FINANCE LIMITED
- 5 -
Opinion

We have audited the financial statements of 365 Business Finance Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 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:

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. We are independent of the group and parent 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.

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 group's and parent 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

365 BUSINESS FINANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 365 BUSINESS FINANCE LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

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 are set out below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

 

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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

365 BUSINESS FINANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 365 BUSINESS FINANCE LIMITED
- 7 -

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 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.

Anthony I Benosiglio (Senior Statutory Auditor)
For and on behalf of Goldwins Limited
4 April 2024
Chartered Accountants
Statutory Auditor
75 Maygrove Road
West Hampstead
London
NW6 2EG
365 BUSINESS FINANCE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
4
18,563,380
10,084,228
Cost of sales
(7,470,525)
(2,717,079)
Gross profit
11,092,855
7,367,149
Administrative expenses
(7,447,624)
(4,568,198)
Other operating income
-
5,819
Operating profit
5
3,645,231
2,804,770
Interest payable and similar expenses
9
(2,798,758)
(1,379,983)
Profit before taxation
846,473
1,424,787
Tax on profit
10
(4,512)
(111,671)
Profit for the financial year
24
841,961
1,313,116
Profit for the financial year is all attributable to the owners of the parent company.
365 BUSINESS FINANCE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 9 -
2023
2022
as restated
£
£
Profit for the year
841,961
1,313,116
Other comprehensive income
-
-
Total comprehensive income for the year
841,961
1,313,116
Total comprehensive income for the year is all attributable to the owners of the parent company.
365 BUSINESS FINANCE LIMITED
GROUP AND COMPANY BALANCE SHEETS
AS AT
30 APRIL 2023
30 April 2023
30 April 2023
- 10 -
Group
Company
2023
2022
2023
2022
as restated
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
258,761
67,499
258,761
67,499
Investments
12
-
0
-
0
1
1
258,761
67,499
258,762
67,500
Current assets
Debtors
14
44,802,398
25,775,632
12,647,046
7,402,558
Cash at bank and in hand
1,678,362
2,300,987
686,848
586,350
46,480,760
28,076,619
13,333,894
7,988,908
Creditors: amounts falling due within one year
15
(1,802,840)
(1,201,913)
(1,605,975)
(1,114,203)
Net current assets
44,677,920
26,874,706
11,727,919
6,874,705
Total assets less current liabilities
44,936,681
26,942,205
11,986,681
6,942,205
Creditors: amounts falling due after more than one year
Loans and overdrafts
17
(35,976,288)
(20,030,833)
(3,026,288)
(30,833)
Convertible loan notes
-
0
(2,400,000)
-
0
(2,400,000)
(35,976,288)
(22,430,833)
(3,026,288)
(2,430,833)
Net assets
8,960,393
4,511,372
8,960,393
4,511,372
Capital and reserves
Called up share capital
20
2,875
2,318
2,875
2,318
Share premium account
21
8,804,164
5,223,595
8,804,164
5,223,595
Other reserves
1,547,243
1,521,309
1,547,243
1,521,309
Profit and loss reserves
24
(1,393,889)
(2,235,850)
(1,393,889)
(2,235,850)
Total equity
8,960,393
4,511,372
8,960,393
4,511,372

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £841,961 (2022 - £1,313,116 profit).

365 BUSINESS FINANCE LIMITED
GROUP AND COMPANY BALANCE SHEETS (CONTINUED)
AS AT
30 APRIL 2023
30 April 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 21 March 2024 and are signed on its behalf by:
21 March 2024
Mr A D Raphaely
Director
Company Registration No. 08267810
365 BUSINESS FINANCE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
Share capital
Share premium account
Share option reserves
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
As restated for the period ended 30 April 2022:
Balance at 1 May 2021
1,617
2,472,692
-
1,349,743
(3,698,517)
125,535
Effect of prior year adjustments
-
-
145,632
-
149,551
295,183
As restated
1,617
2,472,692
145,632
1,349,743
(3,548,966)
420,718
Year ended 30 April 2022:
Profit and total comprehensive income
-
-
-
-
1,313,116
1,313,116
Issue of share capital
20
-
0
286,317
-
-
-
286,317
Share based payments
-
-
25,934
-
-
25,934
Other movements
701
2,464,586
-
-
-
2,465,287
Balance at 30 April 2022
2,318
5,223,595
171,566
1,349,743
(2,235,850)
4,511,372
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
-
841,961
841,961
Issue of share capital
20
-
0
1,181,126
-
-
-
1,181,126
Share based payments
-
-
25,934
-
-
25,934
Other movements
557
2,399,443
-
-
-
2,400,000
Balance at 30 April 2023
2,875
8,804,164
197,500
1,349,743
(1,393,889)
8,960,393
365 BUSINESS FINANCE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 13 -
Share capital
Share premium account
Share option reserves
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
As restated for the period ended 30 April 2022:
Balance at 1 May 2021
1,617
2,472,692
-
1,349,743
(3,698,517)
125,535
Effect of prior year adjustments
-
-
145,632
-
149,551
295,183
As restated
1,617
2,472,692
145,632
1,349,743
(3,548,966)
420,718
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
-
-
-
1,313,116
1,313,116
Issue of share capital
20
-
0
286,317
-
-
-
286,317
Share based payments
-
-
25,934
-
-
25,934
Other movements
701
2,464,586
-
-
-
2,465,287
Balance at 30 April 2022
2,318
5,223,595
171,566
1,349,743
(2,235,850)
4,511,372
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
-
841,961
841,961
Issue of share capital
20
-
0
1,181,126
-
-
-
1,181,126
Share based payments
-
-
25,934
-
-
25,934
Other movements
557
2,399,443
-
-
-
2,400,000
Balance at 30 April 2023
2,875
8,804,164
197,500
1,349,743
(1,393,889)
8,960,393
365 BUSINESS FINANCE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 14 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
3,482,299
362,870
Interest paid
(2,798,758)
(1,275,736)
Tax refunded
339,014
-
0
Issue of financial receivables
(18,231,963)
(14,259,487)
Net cash outflow from operating activities
(17,209,408)
(15,172,353)
Investing activities
Purchase of tangible fixed assets
(273,875)
(66,220)
Net cash used in investing activities
(273,875)
(66,220)
Financing activities
Proceeds from issue of shares
1,181,126
286,317
Movements in convertible loans
-
2,400,000
Proceeds from borrowings
15,705,455
14,125,000
Movement in bank loans
(10,000)
(9,167)
Net cash generated from financing activities
16,876,581
16,802,150
Net (decrease)/increase in cash and cash equivalents
(606,702)
1,563,577
Cash and cash equivalents at beginning of year
2,252,608
689,031
Cash and cash equivalents at end of year
1,645,906
2,252,608
Relating to:
Cash at bank and in hand
1,678,362
2,300,987
Bank overdrafts included in creditors payable within one year
(32,456)
(48,379)
365 BUSINESS FINANCE LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 15 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(3,291,312)
(934,217)
Interest paid
(583,987)
(333,034)
Tax refunded
339,014
-
0
Net cash outflow from operating activities
(3,536,285)
(1,267,251)
Investing activities
Purchase of tangible fixed assets
(273,875)
(66,220)
Net cash used in investing activities
(273,875)
(66,220)
Financing activities
Proceeds from issue of shares
1,181,126
286,317
Movements in convertible loans
-
2,400,000
Movement in borrowings
2,755,455
(875,000)
Movement in bank loans
(10,000)
(9,167)
Net cash generated from financing activities
3,926,581
1,802,150
Net increase in cash and cash equivalents
116,421
468,679
Cash and cash equivalents at beginning of year
537,971
69,292
Cash and cash equivalents at end of year
654,392
537,971
Relating to:
Cash at bank and in hand
686,848
586,350
Bank overdrafts included in creditors payable within one year
(32,456)
(48,379)
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 16 -
1
Accounting policies
Company information

365 BUSINESS FINANCE LIMITED (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 13-15 Rosemont Road, London, NW3 6NG.

 

The group consists of 365 BUSINESS FINANCE LIMITED and its subsidiary 365 BUSINESS FINANCE SUB LIMITED.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company 365 Business Finance Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 April 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -
1.5
Turnover

Revenues relate to discount recognition on basic financial assets and are recognised using the effective interest rate method over the expected life of the related financial asset.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Straight-line over the remaining term of the lease.
Fixtures, fittings & equipment
Straight-line over 2 years.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long-term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.

365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 20 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant. The valuation method used to determine the value of share options is referenced market data and equity transactions in close proximity to the grant dates. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 21 -
1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Change in accounting policy

In the current year, the following new revenue recognition policy has been adopted by the company and have an effect on the current period and prior period and may have an effect on future periods:

Income is now recognised using the amortised cost basis. In the previous accounting period, income was recognised over the life of the advance. The effect of the change in accounting policy has been shown in the prior-year adjustment note in the financial statements.

3
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

4
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
18,563,380
10,084,228
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
4
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Other revenue
Grants received
-
5,819
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(5,819)
Depreciation of owned tangible fixed assets
82,613
28,490
Share-based payments
25,934
25,934
Operating lease charges
72,958
58,101
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
25,200
11,600
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
53
35
53
35
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,367,281
2,642,242
4,367,281
2,642,242
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
508,200
415,000
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 23 -
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
2,798,758
1,379,983
10
Taxation
2023
2022
£
£
Current tax
Research and development tax credits
-
0
(339,014)
Deferred tax
Origination and reversal of timing differences
64,690
-
0
Previously unrecognised tax loss, tax credit or timing difference
(60,178)
450,685
Total deferred tax
4,512
450,685
Total tax charge
4,512
111,671
11
Tangible fixed assets
Group
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 May 2022
64,390
93,491
157,881
Additions
160,465
113,410
273,875
At 30 April 2023
224,855
206,901
431,756
Depreciation and impairment
At 1 May 2022
48,970
41,412
90,382
Depreciation charged in the year
22,419
60,194
82,613
At 30 April 2023
71,389
101,606
172,995
Carrying amount
At 30 April 2023
153,466
105,295
258,761
At 30 April 2022
15,420
52,079
67,499
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
11
Tangible fixed assets
(Continued)
- 24 -
Company
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 May 2022
64,390
93,491
157,881
Additions
160,465
113,410
273,875
At 30 April 2023
224,855
206,901
431,756
Depreciation and impairment
At 1 May 2022
48,970
41,412
90,382
Depreciation charged in the year
22,419
60,194
82,613
At 30 April 2023
71,389
101,606
172,995
Carrying amount
At 30 April 2023
153,466
105,295
258,761
At 30 April 2022
15,420
52,079
67,499
12
Investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1
1
Movement in Investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022 and 30 April 2023
1
Carrying amount
At 30 April 2023
1
At 30 April 2022
1
13
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
365 Business Finance Sub Limited
United Kingdom
Ordinary shares
100.00
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
13
Subsidiaries
(Continued)
- 25 -
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
365 Business Finance Sub Limited
1
-
0
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Financial receivables
42,108,341
23,876,378
-
0
-
0
Corporation tax recoverable
-
0
339,014
-
0
339,014
Amounts owed by group undertakings
-
-
10,308,118
5,661,213
Other debtors
375,052
172,434
19,923
14,525
Prepayments and accrued income
2,161,709
1,225,998
2,161,709
1,225,998
44,645,102
25,613,824
12,489,750
7,240,750
Amounts falling due after more than one year:
Deferred tax asset (note 18)
157,296
161,808
157,296
161,808
Total debtors
44,802,398
25,775,632
12,647,046
7,402,558

Included within the financial receivables are impairment provisions amounting to £3,975,498 (2022: £1,870,073).

15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
42,456
58,379
42,456
58,379
Other borrowings
17
200,000
450,000
200,000
450,000
Trade creditors
1,322,383
693,534
1,125,518
605,824
Other taxation and social security
238,001
-
238,001
-
1,802,840
1,201,913
1,605,975
1,114,203
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 26 -
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Convertible loan notes
-
0
2,400,000
-
0
2,400,000
Bank loans and overdrafts
17
20,833
30,833
20,833
30,833
Other creditors
17
35,955,455
20,000,000
3,005,455
-
0
35,976,288
22,430,833
3,026,288
2,430,833
17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
30,833
40,833
30,833
40,833
Bank overdrafts
32,456
48,379
32,456
48,379
Other loans
36,155,455
20,450,000
3,205,455
450,000
36,218,744
20,539,212
3,268,744
539,212
Payable within one year
242,456
508,379
242,456
508,379
Payable after one year
35,976,288
20,030,833
3,026,288
30,833
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
(64,690)
-
Tax losses
221,986
161,808
157,296
161,808
Assets
Assets
2023
2022
Company
£
£
Accelerated capital allowances
(64,690)
-
Tax losses
221,986
161,808
157,296
161,808
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
18
Deferred taxation
(Continued)
- 27 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 May 2022
161,808
161,808
Charge to profit or loss
(4,512)
(4,512)
Asset at 30 April 2023
157,296
157,296
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
19
Share-based payment transactions
Group and company
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 May 2022 and 30 April 2023
1,010
1,010
222.00
222.00
Exercisable at 30 April 2023
892
774
222.00
222.00

Share Option plan

Group
Company
2023
2022
2023
2022
£
£
£
£
Expenses recognised in the year
Arising from equity settled share based payment transactions
25,934
25,934
25,934
25,934
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 28 -
20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
28,752
23,180
2,875
2,318

During the year the convertible loan notes of £2,400,000 were converted into 3,734 new ordinary shares of £0.10 each and a further 1,838 new ordinary shares of £0.10 each were issued for the sum of £1,181,000.

21
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
5,223,595
2,472,692
5,223,595
2,472,692
Issue of new shares
1,181,126
286,317
1,181,126
286,317
Other movements
2,399,443
2,464,586
2,399,443
2,464,586
At the end of the year
8,804,164
5,223,595
8,804,164
5,223,595
22
Share option reserves
2023
2022
Group and company
£
£
At the beginning of the year
171,566
145,632
Additions
25,934
25,934
At the end of the year
197,500
171,566

Share option reserves represent the fair value of Group's equity settled share based payment transactions.

23
Other reserves
2023
2022
Group and company
£
£
At the beginning and end of the year
1,349,743
1,349,743
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
23
Other reserves
(Continued)
- 29 -

Other reserves were created as follows

 

24
Profit and loss reserves
Group
Company
2023
2022
2023
2022
as restated
as restated
£
£
£
£
At the beginning of the year
(3,667,344)
(3,698,517)
(3,667,344)
(3,698,517)
Prior year adjustment
1,431,494
149,551
1,431,494
149,551
As restated
(2,235,850)
(3,548,966)
(2,235,850)
(3,548,966)
Profit for the year
841,961
1,313,116
841,961
1,313,116
At the end of the year
(1,393,889)
(2,235,850)
(1,393,889)
(2,235,850)
25
Operating lease commitments

At the reporting end date, the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
118,250
43,575
118,250
43,575
Between two and five years
341,792
-
341,792
-
460,042
43,575
460,042
43,575
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 30 -
26
Cash absorbed by group operations
2023
2022
£
£
Profit for the year after tax
841,961
1,313,116
Adjustments for:
Taxation charged
4,512
111,671
Finance costs
2,798,758
1,379,983
Depreciation and impairment of tangible fixed assets
82,613
28,490
Equity settled share based payment expense
25,934
25,934
Movements in working capital:
Increase in debtors
(19,370,292)
(16,723,100)
Increase/(decrease) in creditors
866,850
(32,711)
Cash absorbed by operations
(14,749,664)
(13,896,617)
27
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
841,961
1,313,116
Adjustments for:
Taxation charged
4,512
111,671
Finance costs
583,987
437,281
Depreciation and impairment of tangible fixed assets
82,613
28,490
Equity settled share based payment expense
25,934
25,934
Movements in working capital:
Increase in debtors
(5,588,014)
(3,010,907)
Increase in creditors
757,695
160,198
Cash absorbed by operations
(3,291,312)
(934,217)
28
Analysis of changes in net debt - group
1 May 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
2,300,987
(622,625)
1,678,362
Bank overdrafts
(48,379)
15,923
(32,456)
2,252,608
(606,702)
1,645,906
Borrowings excluding overdrafts
(20,490,833)
(15,695,455)
(36,186,288)
Convertible loan notes
(2,400,000)
2,400,000
-
(20,638,225)
(13,902,157)
(34,540,382)
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 31 -
29
Analysis of changes in net debt - company
1 May 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
586,350
100,498
686,848
Bank overdrafts
(48,379)
15,923
(32,456)
537,971
116,421
654,392
Borrowings excluding overdrafts
(490,833)
(2,745,455)
(3,236,288)
Convertible loan notes
(2,400,000)
2,400,000
-
(2,352,862)
(229,034)
(2,581,896)
30
Prior period adjustment
Reconciliation of changes in equity - group
1 May
30 April
2021
2022
£
£
Adjustments to prior year
Adjustment to commissions
14,564
45,593
Adjustment to turnover
280,619
2,091,820
Deferred tax adjustment
-
(534,353)
Total adjustments
295,183
1,603,060
Equity as previously reported
125,534
2,908,312
Equity as adjusted
420,717
4,511,372
Analysis of the effect upon equity
Other reserves
145,632
171,566
Profit and loss reserves
149,551
1,431,494
295,183
1,603,060
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
30
Prior period adjustment
(Continued)
- 32 -
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Adjustment to commissions
31,029
Adjustment to turnover
1,811,421
Interest paid
(220)
Share based payments
(25,934)
Deferred tax adjustment
(534,353)
Total adjustments
1,281,943
Profit as previously reported
31,173
Profit as adjusted
1,313,116
Changes to the balance sheet - company
As previously reported
Adjustment at 1 May 2021
Adjustment at 30 Apr 2022
As restated at 30 Apr 2022
£
£
£
£
Current assets
Debtors due within one year
5,799,498
295,183
1,307,877
7,402,558
Capital and reserves
Other reserves
1,349,743
145,632
25,934
1,521,309
Profit and loss reserves
(3,667,344)
149,551
1,281,943
(2,235,850)
Total equity
2,908,312
295,183
1,307,877
4,511,372
Changes to the profit and loss account - company
As previously reported
Adjustment
As restated
Period ended 30 April 2022
£
£
£
Turnover
6,739,957
1,811,201
8,551,158
Cost of sales
(2,595,021)
468,310
(2,126,711)
Administrative expenses
(4,542,264)
(25,934)
(4,568,198)
Interest payable and similar expenses
-
(437,281)
(437,281)
Taxation
422,682
(534,353)
(111,671)
Profit after taxation
31,173
1,281,943
1,313,116
365 BUSINESS FINANCE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
30
Prior period adjustment
(Continued)
- 33 -
Reconciliation of changes in equity - company
1 May
30 April
2021
2022
£
£
Adjustments to prior year
Adjustment to commissions prepaid
14,564
45,593
Intercompany recharge adjustment
280,619
2,092,040
Interest paid
-
(220)
Deferred tax adjustment
-
(534,353)
Total adjustments
295,183
1,603,060
Equity as previously reported
125,534
2,908,312
Equity as adjusted
420,717
4,511,372
Analysis of the effect upon equity
Other reserves
145,632
171,566
Profit and loss reserves
149,551
1,431,494
295,183
1,603,060
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Adjustment to commissions prepaid
31,029
Intercompany recharge adjustment
1,811,421
Interest paid
(220)
Equity settled share based payment
(25,934)
Deferred tax adjustment
(534,353)
Total adjustments
1,281,943
Profit as previously reported
31,173
Profit as adjusted
1,313,116
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