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Registered number: 08714197









PURIFY DIGITAL LTD







UNAUDITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
PURIFY DIGITAL LTD
 
 
  
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF PURIFY DIGITAL LTD
FOR THE YEAR ENDED 31 DECEMBER 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Purify Digital Ltd for the year ended 31 December 2023 which comprise the statement of financial position and the related notes from the Company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW)we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.

This report is made solely to the board of directors of Purify Digital Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Purify Digital Ltd and state those matters that we have agreed to state to the board of directors of Purify Digital Ltd, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Purify Digital Ltd and its board of directors, as a body, for our work or for this report. 

It is your duty to ensure that Purify Digital Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Purify Digital Ltd. You consider that Purify Digital Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or review of the financial statements of Purify Digital Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

  



Nyman Libson Paul
 
Chartered Accountants
  
Regina House
124 Finchley Road
London
NW3 5JS
11 July 2024
Page 1

 
PURIFY DIGITAL LTD
REGISTERED NUMBER: 08714197

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
$
$

Fixed assets
  

Intangible assets
 4 
69,467
75,231

Investments
 5 
1
1

  
69,468
75,232

Current assets
  

Debtors: amounts falling due within one year
 6 
291,465
243,484

Cash at bank and in hand
 7 
237,731
310,714

  
529,196
554,198

Creditors: amounts falling due within one year
 8 
(264,466)
(267,861)

Net current assets
  
 
 
264,730
 
 
286,337

Total assets less current liabilities
  
334,198
361,569

Creditors: amounts falling due after more than one year
 9 
(21,123)
(33,037)

Provisions for liabilities
  

Deferred tax
 10 
(13,199)
(14,294)

  
 
 
(13,199)
 
 
(14,294)

Net assets
  
299,876
314,238


Capital and reserves
  

Called up share capital 
  
160
160

Profit and loss account
  
299,716
314,078

  
299,876
314,238


Page 2

 
PURIFY DIGITAL LTD
REGISTERED NUMBER: 08714197
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have 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 have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 July 2024.




Christopher Humby
Director

The notes on pages 4 to 11 form part of these financial statements.

Page 3

 
PURIFY DIGITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Purify Digital Limited is a company limited by shares and incorporated in England & Wales. The address of the registered office is 5 St John's Lane, London, EC1M 4BH.
The principal activity of the company during the year was the provision of digital marketing services.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is USD.

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 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 profit or loss within 'other operating income'.

 
2.3

Revenue

Revenue comprises digital marketing services receivable and is recognised in the Statement of Comprehensive Income in the period it is contractually generated. 

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 4

 
PURIFY DIGITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or 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 of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.6

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Intangible assets comprise two software applications that are in the course of being completed.  Depreciation will be provided on the intangible fixed assets at rates calculated to write each asset down to its estimated residual value over its expected useful life, as follows: 25% straight line.

Page 5

 
PURIFY DIGITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment
-
33%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.9

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.10

Cash and cash equivalents

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

 
2.11

Creditors

Short term creditors are measured at the transaction price.

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 6

 
PURIFY DIGITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

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.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Employees

The average monthly number of employees, including directors, during the year was 2 (2022 - 2).


4.


Intangible assets




Software Applications

$



Cost


At 1 January 2023
215,729


Additions
22,377



At 31 December 2023

238,106



Amortisation


At 1 January 2023
140,498


Charge for the year on owned assets
28,141



At 31 December 2023

168,639



Net book value



At 31 December 2023
69,467



At 31 December 2022
75,231



Page 7

 
PURIFY DIGITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Fixed asset investments





Investments in subsidiary companies

$



Cost or valuation


At 1 January 2023
1



At 31 December 2023
1





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Swap Ads EOOD
Bulgaria
Ordinary shares
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Swap Ads EOOD
18,669
18,619

Page 8

 
PURIFY DIGITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Debtors

2023
2022
$
$


Trade debtors
117,064
124,509

Amounts owed by group undertakings
58,757
5,443

Other debtors
1,442
131

Prepayments and accrued income
107,332
103,835

Tax recoverable
6,870
9,566

291,465
243,484



7.


Cash and cash equivalents

2023
2022
$
$

Cash at bank and in hand
237,731
310,714

Less: bank overdrafts
(2,618)
(244)

235,113
310,470



8.


Creditors: Amounts falling due within one year

2023
2022
$
$

Bank overdrafts
2,618
244

Bank loans
12,867
15,511

Trade creditors
87,922
114,182

Amounts owed to group undertakings
43,239
19,706

Other taxation and social security
11,782
11,919

Accruals and deferred income
106,038
106,299

264,466
267,861



9.


Creditors: Amounts falling due after more than one year

2023
2022
$
$

Bank loans
21,123
33,037

21,123
33,037


Page 9

 
PURIFY DIGITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Deferred taxation




2023


$






At beginning of year
(14,294)


Charged to profit or loss
1,095



At end of year
(13,199)

The provision for deferred taxation is made up as follows:

2023
2022
$
$


Accelerated capital allowances
(13,199)
(14,294)

(13,199)
(14,294)


11.


Related party transactions

During the year the company obtained services totalling $232,616 (2022: $238,012) from its parent company Flat Rock Technology Limited. Also during the year the company made purchases totalling $22,378 (2022: $58,704) from its parent company Flat Rock Technology Limited. All transactions were carried out at arms length. At the statement of financial position date the company owed $22,489 (2022: $41,285) to Flat Rock Technology Limited. The loan is repayable on demand and not interest bearing.
During the year the company obtained services totalling $227,536 (2022: $179,986) from its subsidiary Swap Ads EOOD. All transactions were carried out at arms length. At the statement of financial position date the company owed $39,672 (2022: $16,289) to Swap Ads EOOD. The loan is repayable on demand and not interest bearing.
During the year the company provided services totalling $10,993 (2022: $8,075) and made sales totalling $13,638 (2022: $5,641) to Ads Plus Limited, a company of which Idit Gazit-Berger, spouse of Ran Gazit-Berger is a director. Also during the year the company made purchases totalling $6,232 (2022: $3,600) and also used services totalling $nil (2022: $317) from Ads Plus Limited. All transactions were carried out at arms length. At the statement of financial position date the company was owed $1,636 (2022: $2,771) from Ads Plus Limited. The loan is repayable on demand and not interest bearing.
During the year the company provided services totalling $10,993 (2022: $13,609) and made sales totalling $nil (2022: $5,699) to Flame Digital Limited, a company of which  Ran Gazit-Berger is also a director. Also during theyear the company made purchases totalling $3,020 (2022: $4,559) from Flame Digital Limited. All transactions were carried out at arms length. At the statement of financial position date the company was owed $62,775 (2022: $2,672) from Flame Digital Limited. The loan is repayable on demand and not interest bearing.

Page 10

 
PURIFY DIGITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Controlling party

The company's parent company is Flame Group Limited, a company incorporated and registered in the British Virgin Islands. Idit Gazit-Berger and Ran Gazit-Berger each own 50% of Flame Group Limited and hold a controlling interest in Ads Plus Limited.

 
Page 11