Company Registration No. 07440512 (England and Wales)
etika Finance UK Limited
Annual report and
group financial statements
for the year ended 31 December 2023
Pages for filing with registrar
etika Finance UK Limited
Contents
Page
Group statement of financial position
1
Company statement of financial position
2
Group statement of changes in equity
3
Company statement of changes in equity
4
Notes to the financial statements
5 - 16
etika Finance UK Limited
Group statement of financial position
As at 31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Total intangible assets
5
499
34,069
Tangible assets
6
36,510
35,398
37,009
69,467
Current assets
Debtors
9
83,728,072
59,450,677
Cash at bank and in hand
739,452
4,076,568
84,467,524
63,527,245
Creditors: amounts falling due within one year
10
(9,823,228)
(6,637,183)
Net current assets
74,644,296
56,890,062
Total assets less current liabilities
74,681,305
56,959,529
Creditors: amounts falling due after more than one year
11
(36,406,092)
(17,356,262)
Provisions for liabilities
-
(56,448)
Net assets
38,275,213
39,546,819
Capital and reserves
Called up share capital
13
5,127
5,107
Share premium account
1,999,980
-
0
Capital redemption reserve
57,463,177
57,463,177
Profit and loss reserves
(21,193,071)
(17,921,465)
Total equity
38,275,213
39,546,819

The directors of the group have elected not to include a copy of the income statement within the financial statements.

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 31 May 2024 and are signed on its behalf by:
31 May 2024
John Sean Watherston
Director
Company Registration No. 07440512
etika Finance UK Limited
Company statement of financial position
As at 31 December 2023
31 December 2023
2
2023
2022
Notes
£
£
£
£
Fixed assets
Total intangible assets
5
499
34,069
Tangible assets
6
36,510
35,398
Investments
7
1
1
37,010
69,468
Current assets
Debtors
9
48,106,465
43,936,587
Cash at bank and in hand
723,990
3,949,028
48,830,455
47,885,615
Creditors: amounts falling due within one year
10
(5,878,740)
(4,742,332)
Net current assets
42,951,715
43,143,283
Total assets less current liabilities
42,988,725
43,212,751
Creditors: amounts falling due after more than one year
11
(548,974)
(548,974)
Provisions for liabilities
-
0
(11,819)
Net assets
42,439,751
42,651,958
Capital and reserves
Called up share capital
13
5,127
5,107
Share premium account
1,999,980
-
0
Capital redemption reserve
57,463,177
57,463,177
Profit and loss reserves
(17,028,533)
(14,816,326)
Total equity
42,439,751
42,651,958

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,212,207 (2022 - £1,006,511 loss).

These financial statements have been prepared 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 31 May 2024 and are signed on its behalf by:
31 May 2024
John Sean Watherston
Director
Company Registration No. 07440512
etika Finance UK Limited
Group statement of changes in equity
For the year ended 31 December 2023
3
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
25,807,925
9,901,014
-
(16,200,408)
19,508,531
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(1,721,057)
(1,721,057)
Conversion of Loan notes
13
2,177
21,757,168
-
21,759,345
Share capital reduction
(25,804,995)
-
25,804,995
-
-
0
Share premium reduction
13
-
(31,658,182)
31,658,182
-
-
0
Balance at 31 December 2022
5,107
-
57,463,177
(17,921,465)
39,546,819
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
-
(3,271,606)
(3,271,606)
Issue of share capital
13
20
1,999,980
-
-
2,000,000
Balance at 31 December 2023
5,127
1,999,980
57,463,177
(21,193,071)
38,275,213
etika Finance UK Limited
Company statement of changes in equity
For the year ended 31 December 2023
4
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
25,807,925
9,901,014
-
0
(13,809,816)
21,899,123
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(1,006,510)
(1,006,510)
Conversion of Loan notes
2,177
21,757,168
-
21,759,345
Share capital reduction
(25,804,995)
-
25,804,995
-
-
0
Share premium reduction
-
(31,658,182)
31,658,182
-
Balance at 31 December 2022
5,107
-
0
57,463,177
(14,816,326)
42,651,958
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
-
(2,212,207)
(2,212,207)
Issue of share capital
13
20
1,999,980
-
-
2,000,000
Balance at 31 December 2023
5,127
1,999,980
57,463,177
(17,028,533)
42,439,751
etika Finance UK Limited
Notes to the financial statements
For the year ended 31 December 2023
5
1
Accounting policies
Company information

etika Finance UK Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is Colony Suite 2.01, Colony, One Silk Street, Ancoats, Manchester, M4 6AG.

 

The group consists of etika Finance UK Limited and all of its subsidiaries.

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 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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available group financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the group financial statements:

 

etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
6
1.2
Basis of consolidation

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.

The consolidated group financial statements consist of the financial statements of the parent company etika Finance UK 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 31 December 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.

1.3
Going concern

The group has net assets of £38,275,213 (2022: £39,546,819), and has reported a group loss of £3,271,606 (2022: £1,721,057). 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

1.4
Turnover

Turnover represents interest received and fees charged in the company's principal activity of providing credit finance.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. These largely constitute of software and development costs which are capitalised due to the enduring benefit they provide over multiple years as well as their essentialness to the running of the business.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
7

Amortisation 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:

Software Development costs
33% on cost
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:

Fixtures, fittings & equipment
20% and 33% on cost

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 income statement.

1.7
Fixed asset investments

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.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

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.

etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
8
1.9
Cash at bank and in hand

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 statement of financial position 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, 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.

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.

 

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

 

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.

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.

etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
9
1.12
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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 by reference to the fair value of the equity instruments granted using the Black-Scholes model. 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.

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
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.

etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
10
2
Critical accounting 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Bad debt provision

Trade debtors are recognised at the transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Where necessary, provisions for bad debts are considered when there is payment delinquency. Calculation of these provisions includes a model which takes into account the historical data of loan defaults and uses this data to calculate a probability of default for the loans that are in delinquency. This probability is then used and applied to the principle balance of each loan that has evidence of impairment to calculate the bad debt provision.

3
Exceptional items

In the prior year, the total provision of £56,448 in the balance sheet represents the Directors' best estimate of the liability the company will incur due to certain retailers defaulting on loan payments or for recompensing customers for services that were paid for but not received with these retailers. In the prior year, the group performed a review of the retailers for whom they provide finance with a view to reducing the risk of financial loss as a result of retailer business failures. As a result, the group stopped providing finance where the retailer risk was considered too high.

 

4
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
Total
42
38
42
38
etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
11
5
Intangible fixed assets
Group
Other
£
Cost
At 1 January 2023 and 31 December 2023
934,030
Amortisation and impairment
At 1 January 2023
899,961
Amortisation charged for the year
33,570
At 31 December 2023
933,531
Carrying amount
At 31 December 2023
499
At 31 December 2022
34,069
Company
Other
£
Cost
At 1 January 2023 and 31 December 2023
934,030
Amortisation and impairment
At 1 January 2023
899,961
Amortisation charged for the year
33,570
At 31 December 2023
933,531
Carrying amount
At 31 December 2023
499
At 31 December 2022
34,069
etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
12
6
Tangible fixed assets
Group
Plant and machinery etc
£
Cost
At 1 January 2023
112,854
Additions
21,549
At 31 December 2023
134,403
Depreciation and impairment
At 1 January 2023
77,456
Depreciation charged in the year
20,437
At 31 December 2023
97,893
Carrying amount
At 31 December 2023
36,510
At 31 December 2022
35,398
Company
Plant and machinery etc
£
Cost
At 1 January 2023
112,854
Additions
21,549
At 31 December 2023
134,403
Depreciation and impairment
At 1 January 2023
77,456
Depreciation charged in the year
20,437
At 31 December 2023
97,893
Carrying amount
At 31 December 2023
36,510
At 31 December 2022
35,398
etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
13
7
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries
-
-
1
1

 

Movements in fixed asset investments
Company
Total
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1
Carrying amount
At 31 December 2023
1
At 31 December 2022
1
8
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Etika Finance UK Loans SPV One Limited
1
Provider of credit finance
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Colony Suite 2.01, Colony, One Silk Street, Ancoats, Manchester, England, M4 6AG
9
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
82,263,839
58,122,323
24,577,949
33,117,606
Amounts owed by group
785,651
712,641
23,343,075
10,375,099
Other debtors
678,582
615,713
185,441
443,882
83,728,072
59,450,677
48,106,465
43,936,587
etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
14
10
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
28,962
52,333
27,734
49,881
Taxation and social security
62,815
84,633
62,815
84,633
Other creditors
9,731,451
6,500,217
5,788,191
4,607,818
9,823,228
6,637,183
5,878,740
4,742,332
11
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
35,857,118
16,807,288
-
-
Other creditors
548,974
548,974
548,974
548,974
36,406,092
17,356,262
548,974
548,974

The above bank loan is due to National Westminster Bank Plc (NatWest). The loan carries an annual interest rate which is the aggregate of the applicable margin and SONIA reference rate (sterling overnight index average). The original loan was agreed on 27 November 2019 and was due to be repaid in 36 months. The bank loan facility was renegotiated on 29 June 2023 and is now due to be repaid 48 months from the seventh amendment date of the agreement which was 14 January 2022.


NatWest has a fixed and floating charge over the assets of Etika Finance UK Loans SPV One Limited. Post year end the loan is being repaid and the balance outstanding to NatWest is £8,000,000 as at the signing date. The surplus available facility has been cancelled.

 

The £548,974 (2022: £548,974) in other creditors relates to unsecured loan notes owed to Contentis SPV 1 Limited. The loan notes carry an annual interest rate of 7%. These loan notes are due to be repaid on 26 July 2029.

etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
15
12
Share-based payment transactions

The company operates an Employee Share Ownership Plan whereby the shareholders of Etika Holding Limited have committed to allow the employees of the group below Etika Holding Limited to subscribe to up to 30% of the A ordinary shares in Etika Holding Limited. As at 31 December 2023, 3 employees of Etika Finance UK Limited held 1% of the shares in Etika Holdings Limited.

 

The employees included within the ESOP have subscribed to the shares at their fair value. Value was measured on the basis of management judgement, taking into account an independent valuation of the Etika Finance UK group in dated 31 December 2019 performed on a discounted cash flow basis updated for the performance of the Etika Holding Limited group since that date. On the basis that the employees have paid fair value of the shares there is no impact on the company’s profit and loss account or balance sheet as a result of the ESOP scheme.

 

Shares subscribed to by employees are subject to forfeiture if the employee leaves within 3 years of the date the share subscription is agreed with them, otherwise on leaving the employees shares are governed by the articles of the company. All shares held by UK employees are fully vested.

 

Following the year end on 8 February 2024, the ultimate shareholder offered to purchase the shares within the ESOP scheme for all employees including those employed by Etika Finance UK Limited for £25,000 per employee.

 

13
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £0.0001 each
51,267,200
51,067,200
5,127
5,107

In the prior year, on 14 January 2022 the company’s loan due to its Etika Holdings Limited of 21,759,344 was converted into £0.001 Ordinary shares. On 24 January 2022 the Series B Flowering Shares and Preference shares were re-designated as £0.001 Ordinary shares and £1 ordinary shares.  A capital reduction then took place reducing the £1 Ordinary shares created by the re-designation of the Preference shares to £0.0001 Ordinary shares and the £0.001 Ordinary shares to £0.0001 Ordinary shares.  The share premium account was also cancelled and credited to a capital reserve.

 

On 5 June 2023, the company issued 200,000 ordinary shares at £10 per share with a nominal value of £0.0001.

 

14
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.

The auditor was Saffery LLP.
15
Related party transactions
etika Finance UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
15
Related party transactions (continued)
16

At year end the company owes £830,897 (2022: £771,826) to Contentis SPV 1 Limited, a company owned by Joost Schuijff who has significant influence over Etika Finance UK Limited.

 

At year end the company owes £2,115,043 (2022: £62,805) to etika Australia Pty Ltd, a subsidiary of Etika Holding Limited.

 

At the year end the company is owed £785,651 (2022: owed £712,641) to etika Holding Limited, etika Finance UK Limited's parent company.

 

 

16
Controlling party

The parent company is etika Holding Limited and its registered office is The Scalpel, 18th Floor, 52 Lime Street, London, EC3M 7AF.

 

The ultimate controlling party is Joost Schuijff.

17
Prior period adjustment

A prior year restatement has been disclosed to reclassify the non-utilisation fee of £268,609 and bank interest of £282,045 from Cost of sales in the Group Income Statement to the Interest payable and similar expenses in the Group Income Statement. In addition to the above, amortisation costs of £94,212 have been reclassified from Interest payable and similar expenses in the Group Income Statement to Administrative expenses in the Group Income Statement.

Adjustments to equity - group
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to equity - company
The prior period adjustments do not give rise to any effect upon equity.
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