Company registration number 12181797 (England and Wales)
REMITTANCE360 LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
REMITTANCE360 LTD
COMPANY INFORMATION
Directors
O Shchybun
Y Poluneev
M Niemkova
Company number
12181797
Registered office
85-87 Bayham Street
London
NW1 0AG
Auditor
JF Francis Ltd
Francis House
2 Park Road
Barnet
EN5 5RN
REMITTANCE360 LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
REMITTANCE360 LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The Company is a UK Authorised Electronic Money Institution ("AEMI"), FRN 901072. The company was set up to provide money remittance services (the core of the business model) and electronic money.

R360's money transfer platform offers such benefits as minimal fees, swift transfer times, a user-friendly interface, and quick integration APIs. Utilizing its proprietary IT solution, R360 seamlessly integrates with various payment systems. The service has established a strong presence in core markets including the UK, EU, and Ukraine, where strategic arrangements are in place to guarantee competitive transaction fees.

The principal activity of the company during the period continued to be that of the business process development and preliminary arrangements relating to the start-up remittance services and electronic money issuance.

Review of the business

Remittance360 was incorporated on 30 August 2019. The activities undertaken during the year ended 31 August 2020 primarily involved setting initial banking arrangements, market research, development of proprietary software, as well as the policies and procedures, ensuring compliance with FCA regulations in preparation to AEMI license application. Three directors having experience in the banking and legal industries, as well as company finance, FinTech, remittance and AML had been appointed to the Board.

The Company had been granted AEMI license by the FCA on 30 October 2020. The share capital of £350,000 was fully paid-up, thus enabling R360 to meet capital requirements for EMI as set out by the FCA. A number of contracts with perspective payment partners were signed.

The share capital increased to £473,500.

The Company registered international payment system R360 with the National Bank of Ukraine, appearing on the regulator’s registry from 28.02.2022, four days after the start of the Russia-Ukraine War. During the year, further work was conducted on set up of systems and processes and testing partner integrations.

By December 2022, the Company finished technical integration of payment systems with its primary partners and registered two agreements with payment system participants from Ukraine. On 29.12.2022, the first successful test transfer was made in the live environment prior to going live in January 2023.

In January 2023, the Company has launched the international money remittance operations, Ukraine being the core pay-out market with sending partners from the UK and the EU.

Future developments

The Company successfully launched its business operations in January, following the reporting period. Since the market launch, the Company has been actively expanding its money remittance operations by acquiring new partners and developing a diverse range of remittance methods. In line with our commitment to convenience and flexibility in money transfers, we plan to introduce electronic money within our service portfolio. This will allow our customers to leverage modern technology and gain convenient access to their funds.

Simultaneously, the Company is dedicated to further improving the performance and security of R360 payment system while ensuring strict compliance with industry regulations. By prioritizing continuous enhancements, the Company aims to provide its customers with a seamless and reliable payment experience while upholding the highest standards of security and data protection.

In anticipation of a competitive business environment, the directors remain proactive in their approach. The Company's agile structure, combined with its low fixed costs and robust liquidity position, allows for flexibility and adaptability to uncertainties common in the startup stage. The directors are confident in the Company's financial position and believe that identified risks are being effectively managed to ensure sustainable growth and success.

REMITTANCE360 LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

Business Model: The risk that the Company's business model is not sustainable due to poor execution of the strategic plan or inability to adapt to changing market conditions.

Financial: Risks that could impact the Company's financial profile, particularly cash flow risk arising from the failure to maintain an adequate working capital position. The Company minimizes financial risk exposure by keeping assets and liabilities in the functional currency and avoiding credit risks whenever possible.

Compliance: The risk of non-compliance with relevant legislations, rules, and regulations, which could result in harm to customers, financial losses, or reputational damage to the Company.

Operational: The risk that failures in people, processes, or internal and third-party systems could cause service disruptions or financial losses.

War in Ukraine: The persistent conflict in Ukraine introduces a risk, primarily the potential disruptions to the Company's business due to its reliance on Ukrainian banks for financial transactions in this market. The changing legislative landscape in the region also poses an ongoing challenge, potentially impacting the Company's ability to operate effectively. However, the Company remains committed to its Ukrainian operations and will adapt as necessary to navigate these risks.

Furthermore, it is important to note that the Company's shareholder and Managing Director have relocated from Ukraine to Germany. This decision was made to ensure the continuity and stability of the organization in light of the war in Ukraine.

S172 Statement

During the financial year to 31 December 2023, the directors have considered the needs of the Company's stakeholders as part of their decision-making process. Specifically, the directors consider the likely consequences of its decisions in the long term and the need to act fairly between its stakeholders. The Company’s key stakeholders, why they are important to the Company and how they have been engaged are:

Clients: Clients are central to the business. R360’s business model is targeting under-banked customers, students, millennials, freelancers and migrants who are looking for reliable, stable and easy-to-use money remittance solution. R360 aims to provide a high-quality product in a timely manner tailored to the needs of its clientele in a cost-effective way, while being committed to having healthy controls, policies and procedures in place to mitigate client risk and as defined by its supervision authority (FCA).

In striving to achieve its mission, the Company’s value proposition will include: the vast geography of the payment system participants, low commissions, favourable currency conversion rates, the ability to make transfers online 24/7 and other.

Shareholders: Delivering for the Company's shareholders ensures that the business continues to be successful in the long term and can therefore continue to deliver for all our stakeholders. The current sole shareholder is actively engaged on a full-time basis in the daily management and running of Remittance360 and this allows for complete transparency in operation.

Employees: The Company endeavours to have employees that are inspired and motivated. Regular training, including training in relation to customer due diligence and all aspects of AML, is provided to allow employees to perform their duties.

REMITTANCE360 LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Partners and suppliers: Building strong relationships with payment partners and other suppliers enables the Company to obtain the best value, service and quality. The directors work hard to understand our supply chain and develop deeper and more strategic relationships with key suppliers. We recognize the importance of partner feedback and prioritize flexibility during the integration process. Partner due diligence is an integral part of the company’s day-to-day activities. In doing this we partner with industry leaders such as Dow Jones and Kroll to carry out checks. Risk based approach is used to tailor the amount of due diligence procedures according to country specific and other risks.

Impact of operations on the community and the environment: The Company's mission is oriented on global financial stability and sustainability, which it extends to the society and environment at large. The company is dedicated to having a positive environmental impact and accomplishes this on a day-to-day basis by adopting remote working, which minimizes the company's operational footprint. The Company hopes to lessen the effect people have on the environment by empowering customers to manage more of their financial lives electronically.

Maintaining a reputation for high standards of business conduct: The Company's most important commitment is to its clients, whose interests are represented by regulatory authorities such as the Financial Conduct Authority (FCA) and other industry organizations. The Company collaborates closely with these organizations to promote a healthy industry, and they keep in touch on a regular basis about issues such as company conduct, compliance, and sustainable business practices.

Acting fairly across stakeholders: The Company is committed to acting fairly and transparently with different stakeholder groups and individuals.

Likely consequences of any decision in the long term: When making decisions, the Board considers all of the interests articulated above. In addition to the immediate impact, these decisions consider the potential long-term impacts on different stakeholders.

On behalf of the board

Y Poluneev
Director
14 June 2024
REMITTANCE360 LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Results and dividends

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

Directors

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

O Shchybun
Y Poluneev
M Niemkova
Qualifying third party indemnity provisions

The company has not made qualifying third party indemnity provisions for the benefit of its directors during the year.

Auditor

JF Francis Ltd were re-appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 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 company’s auditor 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 company’s auditor is aware of that information.

REMITTANCE360 LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
On behalf of the board
Y Poluneev
Director
14 June 2024
REMITTANCE360 LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF REMITTANCE360 LTD
- 6 -
Opinion

We have audited the financial statements of Remittance360 Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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 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 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:

REMITTANCE360 LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF REMITTANCE360 LTD
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its 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 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 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. We designed procedures capable of detecting non-compliance with laws and regulations and irregularities, including fraud, through:

Our audit procedures were designed to respond to the identified risks relating to non-compliance with laws and regulations and irregularities (including fraud) that are material to the financial statements.

REMITTANCE360 LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF REMITTANCE360 LTD
- 8 -

Our audit procedures in relation to non-compliance with laws and regulations included, but were not limited to:

Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations and reviewing correspondence with regulators and with solicitors; and

Our audit procedures in relation to irregularities and fraud included, but were not limited to:

Making enquiries of directors and management as to where they considered there was susceptibility to fraud, and whether they had knowledge of actual, suspected or alleged fraud; and

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management.

Because of these inherent limitations, 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. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. This 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/auditors responsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Frank Yiallouris
Senior Statutory Auditor
For and on behalf of JF Francis Ltd
14 June 2024
Chartered Certified Accountants
Statutory Auditor
Francis House
2 Park Road
Barnet
EN5 5RN
REMITTANCE360 LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
Revenue
3
14,585
-
Administrative expenses
(74,835)
(80,890)
Loss before taxation
(60,250)
(80,890)
Tax on loss
8
-
0
-
0
Loss for the financial year
(60,250)
(80,890)

The income statement has been prepared on the basis that all operations are continuing operations.

REMITTANCE360 LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
Current assets
Trade and other receivables
10
372,754
11,449
Cash and cash equivalents
55,719
354,036
428,473
365,485
Current liabilities
11
(77,327)
(9,912)
Net current assets
351,146
355,573
Non-current liabilities
12
-
0
(29,500)
Net assets
351,146
326,073
Equity
Called up share capital
16
531,169
445,846
Retained earnings
(180,023)
(119,773)
Total equity
351,146
326,073
The financial statements were approved by the board of directors and authorised for issue on 14 June 2024 and are signed on its behalf by:
Y Poluneev
Director
Company registration number 12181797 (England and Wales)
REMITTANCE360 LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Other reserves
Retained earnings
Total
Notes
Balance at 1 September 2021
387,901
20,295
(38,883)
369,313
Period ended 31 December 2022:
Loss and total comprehensive income
-
-
(80,890)
(80,890)
Issue of share capital
16
57,945
-
-
57,945
Transferred to share capital
-
(20,295)
-
(20,295)
Balance at 31 December 2022
445,846
-
(119,773)
326,073
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(60,250)
(60,250)
Issue of share capital
16
85,323
-
-
85,323
Balance at 31 December 2023
531,169
-
(180,023)
351,146
REMITTANCE360 LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
Cash flows from operating activities
Cash absorbed by operations
21
(354,140)
(89,978)
Financing activities
Proceeds from issue of shares
85,323
37,650
Repayment of borrowings
(29,500)
27,939
Net cash generated from financing activities
55,823
65,589
Net decrease in cash and cash equivalents
(298,317)
(24,389)
Cash and cash equivalents at beginning of year
354,036
378,425
Cash and cash equivalents at end of year
55,719
354,036
REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Remittance360 Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 85-87 Bayham Street, London, NW1 0AG.

 

The Company is a UK Authorised Electronic Money Institution ("AEMI"), FRN 901072. The company was set up to provide money remittance services (the core of the business model) and electronic money.

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 euros, which is the functional and presentational 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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The shareholder will continue to provide support to the Company.

1.3
Revenue

Revenue represents commissions receivable from providing remittance services. Revenue is recognised when the remittance services are provided.

1.4
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.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position 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

Basic financial assets, which include trade and other receivables 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. Financial assets classified as receivable within one year are not amortised.

REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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

REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Subordinated debt. Subordinated debt can only be paid in the event of a liquidation after the claims of other higher priority creditors have been met. Subordinated debt is carried at amortised debt.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
Equity instruments

Equity instruments issued by the company 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 company.

1.7
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 non-current 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.

 

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.8
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.9
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 leases asset are consumed.

1.10
Foreign exchange

Transactions in currencies other than euros 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.

REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
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.

There are no critical judgements or key estimates in this financial period.

3
Revenue

An analysis of the company's revenue is as follows:

2023
2022
Other revenue
Commissions receivable
14,585
-
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
Exchange losses
387
328
Operating lease charges
12,979
7,078
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
For audit services
Audit of the financial statements of the company
-
0
4,738
For other services
All other non-audit services
2,369
3,519

The audit fee is payable by a related company.

6
Employees

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

2023
2022
Number
Number
3
3
REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
2022
Wages and salaries
18,792
31,046
Social security costs
195
-
Pension costs
141
-
0
19,128
31,046
7
Directors' remuneration
2023
2022
Remuneration for qualifying services
18,792
31,046
Company pension contributions to defined contribution schemes
141
-
18,933
31,046
8
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
Loss before taxation
(60,250)
(80,890)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(11,448)
(15,369)
Unutilised tax losses carried forward
11,448
15,369
Taxation charge for the year
-
-

The company has suffered loss for the period and hence does not have corporation tax expense.

The loss of €180,023 (2022 - €119,773) is carried forward and originates a deferred tax asset of 2023 - €11,448 (2022 - €15,369 ) at the rate of 19%. The management has decided not to recognise the asset in the financial statements as there is no certainty about the timing of future profits and the relevant tax rates.

9
Financial instruments

There are no financial assets or liabilities at fair value through profit or loss.

The financial assets and liabilities at amortised cost are presented in these financial statements.

REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Trade and other receivables
2023
2022
Amounts falling due within one year:
Other receivables
371,883
10,520
Prepayments and accrued income
871
929
372,754
11,449
11
Current liabilities
2023
2022
Trade payables
3,074
850
Taxation and social security
43
-
0
Other payables
74,210
-
0
Accruals and deferred income
-
0
9,062
77,327
9,912
12
Non-current liabilities
2023
2022
Notes
Other borrowings
13
-
0
29,500

During the year, the subordinated debt was repaid in full.

Amounts included above which fall due after five years are as follows:
Payable other than by instalments
-
29,500
13
Borrowings
2023
2022
Other loans
-
0
29,500
Payable after one year
-
0
29,500
14
FCA Capital requirements compliance

The Company met the capital adequacy requirement by increasing the share capital in the year (Note 16) and provision of subordinated by two of the directors (note 12 and 18).

REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
141
-

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital

The company share capital issued and fully paid at the end of the period was €531,169 and was translated into GPB by using the spot rate of 1.121793. The value of share in GPB was £473,500 divided in 9,470 ordinary shares of £50 each. The shares were issued and allotted at par and paid up in Euro.

 

During the period 1,470 ordinary shares were allotted nominal value £50 each and total nominal value £73,500.

 

The shareholder's liabilities for capital injection and their settlement were measured using spot rate of EUR/GBP published at investing.com at the date of payment.

 

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. All ordinary shares rank equally with regard to the company's residual assets.

17
Operating lease commitments
Lessee

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

2023
2022
Within one year
12,240
12,240
REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
18
Related party transactions
Remuneration of key management personnel

The company's key management personnel are considered to be the directors. Two of the directors were remunerated during this period as detailed in Note 7.

 

Shareholders funds at the beginning of the period was €NIL.

 

As of the end of the period, the company has outstanding subordinated loans from related parties. The details are as follows:

 

- Yuri Poluneev (CEO): €NIL (2022 - €10,000)

- Maryna Niemkova (Director and Shareholder): €0 (2022 - €19,500)

 

No interest is charged on these subordinated loans. Further information is disclosed under Note 11.

 

In addition, the company has entered into a licensing agreement with its close link Own Bit LLC for the use of a money transfer platform software. The related company is controlled by the company's shareholder. The terms of the agreement permit license fee of 0.01% of turnover limited to remittance operations with a maximum of 10 (ten) partners, to be upgraded to a higher fee level when the number of partners increases. 

19
Directors' transactions

No dividends were paid in the period in respect of shares held by the company's directors.

20
Ultimate controlling party

The ultimate controlling party is Maryna Niemkova.

21
Cash absorbed by operations
2023
2022
Loss for the year after tax
(60,250)
(80,890)
Movements in working capital:
Increase in trade and other receivables
(361,305)
(7,028)
Increase/(decrease) in trade and other payables
67,415
(2,060)
Cash absorbed by operations
(354,140)
(89,978)
REMITTANCE360 LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
22
Analysis of changes in net debt
2023
Opening net funds/(debt)
Cash at bank and in hand
354,036
Borrowings excluding overdrafts
(29,500)
324,536
Changes in net debt arising from:
Cash flows of the entity
(268,817)
Closing net funds as analysed below
55,719
Closing net funds
Cash at bank and in hand
55,719
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