Company registration number 07873637 (England and Wales)
EC1 CAPITAL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
EC1 CAPITAL LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
4 - 8
EC1 CAPITAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
4
2,127,068
9,668,698
Current assets
Cash at bank and in hand
12,066
10,065
Creditors: amounts falling due within one year
5
(11,820,062)
(12,416,724)
Net current liabilities
(11,807,996)
(12,406,659)
Total assets less current liabilities
(9,680,928)
(2,737,961)
Capital and reserves
Called up share capital
100,000
100,000
Fair value reserve
(418,134)
6,659,502
Profit and loss reserves
(9,362,794)
(9,497,463)
Total equity
(9,680,928)
(2,737,961)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 April 2024 and are signed on its behalf by:
Abdulrahman O Alsabban
Director
Company Registration No. 07873637
EC1 CAPITAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
100,000
6,314,114
(8,177,936)
(1,763,822)
Year ended 31 December 2022:
Loss for the year
-
-
(974,139)
(974,139)
Other comprehensive income:
Adjustments to fair value of financial assets
-
345,388
(345,388)
Total comprehensive income for the year
345,388
(1,319,527)
(974,139)
Balance at 31 December 2022
100,000
6,659,502
(9,497,463)
(2,737,961)
Year ended 31 December 2023:
Loss for the year
-
-
(6,942,967)
(6,942,967)
Other comprehensive income:
Adjustments to fair value of financial assets
-
(7,077,636)
7,077,636
Total comprehensive income for the year
(7,077,636)
134,669
(6,942,967)
Balance at 31 December 2023
100,000
(418,134)
(9,362,794)
(9,680,928)
The fair value reserve reflects un-realised gains on investments and therefore is non-distributable
EC1 CAPITAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
10
(13,630)
(7,193)
Financing activities
New loans in year
15,631
12,093
Net cash generated from financing activities
15,631
12,093
Net increase in cash and cash equivalents
2,001
4,900
Cash and cash equivalents at beginning of year
10,065
5,165
Cash and cash equivalents at end of year
12,066
10,065
EC1 CAPITAL LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Judgements and key sources of estimation uncertainty
In the application of the company’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.
2
Accounting policies
Company information
EC1 Capital Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Irwin Mitchell LLP, Riverside East, 2 Millsands, Sheffield, South Yorkshire, S3 8DT.
2.1
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 assets as detailed in the accounting policies below.
2.2
Going concern
The company meets its day to day working capital requirements through the support of the parent company. The directors consider that the company will continue to operate with full financial support from the parent company. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis. The parent company loan is interest free, has no repayment period or formal terms and is therefore considered payable on demand. Under FRS 102, this should therefore be reflected as a current liability. The parent company has expressed its intention not to draw the loan within 12 months of the year end, in order to continue to provide financial support to the company. The financial statements do not include any adjustments that would result from a withdrawal of the financial support by the parent company.
2.3
Fixed asset investments
Fixed asset investments are stated at fair value. Movements in fair value are included in the profit and loss account and in note 5.
The fixed asset investments are unlisted and the fair values have been determined with reference to the latest investment rounds. Management have also considered the future potential of the company in terms of sales, revenue and return on investment (ROI) as well as market size, team quality, disruptive capacity, product, scaling ability and potential exit scenarios.
2.4
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.
EC1 CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 5 -
2.5
Financial instruments
The company 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 company's balance sheet when the company 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 to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Debtors - short term debtors are measured at transaction price, less any impairment.
Bank - bank account balance are stated as per the statements, translated from foreign currencies at the exchange rate at the year end where applicable.
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 company after deducting all of its liabilities.
Basic financial liabilities
Creditors - short term creditors are measured at transaction price. Short term loans are measured at cost and this is not discounted.
2.6
Foreign exchange
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Exchange differences are taken into account in arriving at the operating result.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
Fixed asset investments
2023
2022
£
£
Investments
2,127,068
9,668,698
EC1 CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Fixed asset investments
(Continued)
- 6 -
2023
2022
£
£
Glean In (Level 29 Ltd)
210,410
287,682
Smart Trade (Smart Trade App Ltd)
305,370
305,370
Retronaut (Timescape Limited)
15,000
15,000
Hands HQ Ltd
207,425
757,158
Give Truly/Truly Experiences Ltd
116,044
116,044
Evvnt Limited
-
814,162
Tailster (Dogstay Limited)
-
699,066
Loyalty Lion Ltd
345,000
5,170,793
Dataplug Limited
833,593
1,503,423
Evvnt Technologies Corp
94,226
-
2,127,068
9,668,698
For information only, the historic cost of the investments are as follows:
2023
2022
£
£
Glean In (Level 29 Ltd)
210,410
210,410
Smart Trade (Smart Trade App Ltd)
196,510
196,510
Retronaut (Timescape Limited)
115,000
115,000
Global Medical Treatment Limited (formerly Emergency Dentech Limited)
17,444
17,444
Hands HQ Ltd
207,426
207,426
Give Truly/Truly Experiences Ltd
523,297
523,297
City Socializer (City Socialising Ltd)
-
150,013
Evvnt Limited
-
119,986
Tailster (Dogstay Limited)
-
290,518
Loyalty Lion Ltd
345,000
345,000
Dataplug Limited
833,593
833,593
Evvnt Technologies Corp
96,523
-
2,545,203
3,009,197
As at 31 December 2023 there is an investment commitment of £nil (2022 - £nil).
The company does not hold more than 20% of the share capital in any companies.
The fixed asset investments have been restated to fair value as at 31 December 2023 and 31 December 2022 in accordance with FRS 102. The fair value is determined by reference to the latest investment rounds as explained in note 1.
EC1 CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Investments
£
Fair value b/fwd
9,668,698
Additions
96,523
Valuation changes
(7,077,636)
Disposals
(119,986)
Write offs
(440,531)
At 31 December 2023
2,127,068
Carrying amount
At 31 December 2023
2,127,068
At 31 December 2022
9,668,698
5
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
11,813,521
12,411,683
Other creditors
6,541
5,041
11,820,062
12,416,724
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Jordan Abbott BSc ACA
Statutory Auditor:
Sumer Audit
7
Related party transactions
Included within creditors is a loan owed to Sabban Capital LLC, the parent company, totalling £11,813,521 (2022 - £12,411,683). There is no repayment term at the year end date. There is also no arrangement for any interest to be accrued on this loan. The loan is made in AED and the year end balance is AED 55,234,592. The foreign exchange difference is included in the profit and loss figure.
8
Parent company
The ultimate parent company is Sabban Capital LLC, a company registered in the United Arab Emirates.
EC1 CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
9
Analysis of changes in net debt
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
10,065
2,001
-
12,066
Loans
(12,411,683)
(15,630)
613,792
(11,813,521)
10
Cash absorbed by operations
2023
2022
£
£
Loss for the year after tax
(6,942,967)
(974,139)
Adjustments for:
Fair value adjustment to fixed assets
7,077,636
(345,388)
Amounts written off investments
463,994
-
Foreign exchange gains/(losses) on cash equivalents
(613,792)
1,314,434
Movements in working capital:
Increase/(decrease) in creditors
1,499
(2,100)
Cash absorbed by operations
(13,630)
(7,193)
2023-12-312023-01-01false26 April 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityThis audit opinion is unqualifiedBadr AlsabbanAbdulrahman Osamah AlsabbanIrwin Mitchell Secretaries Limitedfalsefalse078736372023-01-012023-12-31078736372023-12-31078736372022-12-3107873637core:CurrentFinancialInstruments2023-12-3107873637core:CurrentFinancialInstruments2022-12-3107873637core:ShareCapital2023-12-3107873637core:ShareCapital2022-12-3107873637core:RevaluationReserve2023-12-3107873637core:RevaluationReserve2022-12-3107873637core:RetainedEarningsAccumulatedLosses2023-12-3107873637core:RetainedEarningsAccumulatedLosses2022-12-3107873637core:ShareCapital2021-12-3107873637core:RevaluationReserve2021-12-31078736372021-12-3107873637bus:Director22023-01-012023-12-3107873637core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31078736372022-01-012022-12-3107873637core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3107873637core:RevaluationReserve12022-01-012022-12-310787363722022-01-012022-12-3107873637core:RevaluationReserve32023-01-012023-12-310787363742023-01-012023-12-3107873637core:ShareCapital2022-01-012022-12-3107873637core:RevaluationReserve2022-01-012022-12-3107873637core:ShareCapital2023-01-012023-12-3107873637core:RevaluationReserve2023-01-012023-12-31078736372022-12-3107873637core:Non-currentFinancialInstruments2023-12-3107873637core:Non-currentFinancialInstruments2022-12-3107873637bus:PrivateLimitedCompanyLtd2023-01-012023-12-3107873637bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3107873637bus:FRS1022023-01-012023-12-3107873637bus:Audited2023-01-012023-12-3107873637bus:Director12023-01-012023-12-3107873637bus:CompanySecretary12023-01-012023-12-3107873637bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP