Finnovista Frontier Ltd

 

Directors' Report and Financial Statements

Year ended

31 December 2023

 

Company Number 09914609

Finnovista Frontier Ltd

Company information

 

Directors

C. Kølbek

 

F Bueno Rodriguez

 

A Fontao Cánovas

 

 

Registred number

9914609

 

 

Registred office

4th. Floor Silverstream House

 

45 Fitzroy Street

 

London

 

W1T 6EB

 

 

Finnovista Frontier Ltd

 

Directors Report

For the Year Ended 31 December 2023

 

The directors present their report and the financial statements for the year ended 31 December 2023.

 

Principal activity

The Company principally provides services as a startup accelerator for fintech entrepreneurs and receives income and incurs expenes primarly related to the operation of a startup accelerator. Future activities will be in the same field.

 

Business review

The loss for the year, after taxation, was €67k (2022: profit of €233k).

 

No dividends paid out in the year (2022: €250k).

 

Directors

The directors who served during the year were:

 

C. Kølbek

F Bueno Rodriguez

A Fontao Cánovas

 

Going concern

The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for twelve months from the date of approval of the financial statements.

 

Disclosure of information from the directors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

 

so far as the director is aware, there is no relevant information of which the Company is unaware; and

 

 

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant information and to establish that the Company is aware of that information.

 

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 15 July 2024 and signed on its behalf.

 

 

 

 

_____________________

C. Kølbek

Director

 

Finnovista Frontier Ltd

 

Statement of Comprehensive Income

For the Year Ended 31 December 2023

 

 

 

2023

2022

 

Note

€000

€000

Turnover

 

321

383

Cost of sales

 

 

 

 

 

 

 

Gross Profit

 

321

383

 

 

 

 

Administrative expenses

 

(374)

(344)

Exceptional Administrative expenses

 

0

0

Other income

 

0

0

 

 

 

 

Operating (loss)/profit

 

(53)

39

 

 

 

 

Interest receivable and similar expenses

 

1

28

Interest payable and similar expenses

 

(16)

(11)

 

 

 

 

Income from investments

 

0

225

 

 

 

 

(Loss)/profit before tax

 

(68)

281

 

 

 

 

Tax on (loss)/profit

 

0

(48)

 

 

 

 

(Loss)/profit for the financial year

 

(68)

233

 

There was no other comprehensive income for 2023.

 

 

 

 

 

 

 

 

 

 

 

Finnovista Frontier Ltd

Registered number: 09914609

 

Balance Sheet

As at 31 December 2023

 

 

 

2023

2022

 

Note

€000

€000

 

 

 

 

Fixed assets

 

 

 

Investments

 

5

5

 

 

 

 

Current assets

 

 

 

Debtors; amounts failing due within one year

 

13

80

Cash and cash equivalents

 

218

226

 

 

231

305

 

 

 

 

Current liabilities

 

 

 

Creditors; amounts failing due within one year

 

(33)

(41)

 

 

(33)

(41)

 

 

 

 

Net current assets

 

202

269

 

 

 

 

Total assets less current liabilities

 

202

269

 

 

 

 

Net assets

 

202

269

 

 

 

 

Capital and reserves

 

 

 

Called up share capital

 

-

-

Profit and loss account

 

(202)

(269)

 

 

 

 

Shareholders funds

 

(202)

(269)

 

The financial statements has been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 section 1A - small entities.

 

The financial statements were approved and authorised for issue by the board and were signed on its behalf on July 15 2024

 

 

 

 

_______________________

Carsten Kølbek

Director

Finnovista Frontier Ltd

 

Statement of Changes in Equity

For the Year Ended 31 December 2023

 

 

Called up

share capital

Profit and

loss account

Share-holders'

funds

 

€000

€000

€000

At 1 January 2023

0

269

269

 

 

 

 

 

0

269

269

 

 

 

 

Comprehensive income for the year

 

 

 

Loss for the financial year

0

(67)

(67)

 

0

(67)

(67)

Total comprehensive income for the year

 

 

 

 

 

 

 

Dividends paid out

 

 

0

 

 

 

 

At 31 December 2023

0

202

202

 

The holders of Ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

 

Finnovista Frontier Ltd

 

Notes to the Financial Statements

For the Year Ended 31 December 2023

 

1.     General information

 

Finnovista Frontier Limited is a private company limited by shares and incorporated in England and Wales under the Companies Act 2006. The address of the registered office is given on the Company Information page and the nature of the Company's operations and principal activities are given in the Directors' Report.

 

2.     Accounting policies

 

2.1     Basis of preparation of financial statements

 

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of lreland and the Companies Act 2006.

 

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

 

The presentation currency of these financial statements is euros. All amounts in the financial statements have been rounded to the nearest €1,000.

 

The following principal accounting policies have been applied consistently to all periods presented in these financial statements unless otherwise stated.

 

2.3     Consolidated financial statements

 

The Company is a parent undertaking of a small group and, as such, is not required by the Companies Act 2006 to prepare group accounts. Therefore, these financial statements present information about the Company as an individual undertaking and not about its group.

 

2.4     Going concern

 

In considering the appropriate basis on which to prepare the financial statements, the directors are required to consider whether the Company can continue in operational existence for the foreseeable future.

 

The Company generated a loss of €67,000 (2022: profit of of €233,000) during the year and had a net asset balance of €202,000 as at 31 December 2023 (2021: €269,000).

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2.4     Going concern (Continued)

 

The Company holds sufficient cash to be able to support expenditure for a period of 12 months from the date of signing these financial statements. The forecasts produced by the directors only include signed contracts and have been prepared on a worst-case basis, these show headroom on available cash one year from the date these financial statements are signed. However, the directors do not believe there is sufficient headroom on forecasts to remove uncertainty over the going concern assessment. The directors have therefore obtained confirmation from Rainmaking Innovation Limited that it is the intention to provide the necessary financial support to the Company to ensure that the Company will be able to settle is liabilities as they fall due for a period of not less than 12 months from the date of signing these financial statements.

 

The directors have reviewed Rainmaking Innovation Ltd's ability to provide this financial support including their cash flow forecasts and projections. These forecasts show significant cash facilities available for the next 12 months. On this basis, the directors have concluded that it is appropriate to prepare the Company's financial statements on the going concern basis.

 

2.4     Turnover

 

Turnover is income associated with the provision of startup accelerator services and is recognised in the Statement of Comprehensive Income in the period in which the service is provided, net of VAT and trade discounts.

 

2.5     Valuation of investments

lnvestments in subsidiaries are measured at cost less accumulated impairment.

 

lnvestments in unlisted company shares, where market value can be reliably determined, are remeasured to market value at each Balance Sheet date. Gains and losses oan remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historie cost less impairment.

 

2.6     Interest income

 

lnterest income is recognised in the Statement of Comprehensive Income using the effective interest method.

 

2.7     Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 

2.8     Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net af transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 

2.9     Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty an notice of not more than 24 hours.

 

Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts af cash with insignificant risk of change in value.

 

2.10     Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence af impairment. If objective evidence af impairment is found, an impairment loss is recognised in the Statement af Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value af estimated cash flows discounted at the asset's original effective interest rate.

If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date.

 

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle an a net basis or to realise the asset and settle the liability simultaneously.

 

2.11     Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank

 

loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 

2.12     Foreign currency translation Functional and presentation currency

The Company's functional and presentational currency is Euros.

 

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at periodend exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within finance income or costs. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.

2.13     Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the etfective interest method so that the amount charged is at a constant rate on the carrying amount. lssue costs are initially recognised as a reduction in the proceeds of the associated. capital instrument.

 

2.14     Taxation

Tax is recognised in the Statement af Comprehensive Income except that a charge attributable to an item af income and expense recognised as other comprehensive income ar to an item recognised directly in equity is also recognised in other comprehensive income ar directly in equity respectively.

 

The current income tax charge is calculated an the basis af tax rates and laws that have been enacted ar substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.

 

Deferred tax balances are recognised in respect af all timing differences that have originated but not reversed by the Balance Sheet date, except that:

 

the recognition af deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal af deferred tax liabilities ar other future taxable profits; and

 

 

any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

 

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values af liabilities acquired and the amount that will be assessed for tax.

Deferred tax is determined using tax rates and laws that have been enacted ar substantively enacted by the Balance Sheet date.

 

2.15     Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

3.     Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have not had to make any key judgements or estimates.

 

4.     Employees

The average monthly number of employees, including the directors, during the year was as follows:

 

 

2023

2022

 

No.

No.

Directors

3

3

5.     Directors' remuneration

    

 

2023

2022

 

€000

€000

Directors' emoluments

224

246

 

6.     Taxation

    

 

2023

2022

 

€000

€000

Corporation tax

 

 

Current tax on (losses)/profits for the year

0

48

Total current tax

0

48

 

7     Fixed asset investments

 

 

Investments in

subsidiary

companies

€000

Cost

 

At 1 January 2023 and 31 December 2023

6

 

 

Impairment

 

At 1 January 2023 and 31 December 2023

1

 

 

Net book value

 

At 31 December 2023 and 31 December 2021

5

 

Investments in equity shares relate to other companies registered in Spain and Mexico in which the Company has invested.

 

Subsidiary undertakings

 

Name

Country of incorporation

Class of

shares

Holding

Principal activity

 

 

 

 

 

Finnovista Frontier Spain S.L.

Spain

Ordinary

100

%

Start up accelerator

Finnovista Frontier Mexico

Mexico

Ordinary

100

%

Start up accelerator

 

The registered address of Finnovista Frontier Spain S.L. is Paseo Parques No.31, 28109 Alcobendas, Madrid and for Finnovista Frontier Mexico is Chihuahua No. 230 PB, Mexico (Roma Norte, Cuauht'moc),06700, Mexico.

8.     Debtors: amounts falling due within one year

 

 

2023

2022

 

€000

€000

Trade debtors

13

-

Amounts owed by group undertakings

122

68

Other debtors

15

0

Prepayments and accrued income

3

12

 

139

80

 

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

 

9.     Cash and cash equivalents

 

 

2023

2022

 

€000

€000

Cash at bank and in hand

79

226

 

10.     Creditors: amounts falling due within one year

 

 

2023

2022

 

€000

€000

Trade creditors

28

6

Amounts owed to group undertakings

0

0

Corporation tax

0

34

Accruals and deferred income

6

0

 

34

41

 

11.     Share capital

 

 

2023

2022

 

€000

€000

Allotted, called up and fully paid 1,000 ordinary shares of £0.01 each

-

-

 

Each share has full rights in the Company with respect to voting, dividends and distributions.

 

12.     Reserves

 

The Company has the following reserves:

 

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends paid and other adjustments.

 

13.     Related party transactions

 

The Company has taken advantage of the exemption in section 33.1A of FRS 102 whereby it has not disclosed transactions with any other wholly owned members of the group.

true

 

14.     Ultimate controlling party

 

In the opinion of the directors, there is no ultimate controlling party.