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REGISTERED NUMBER: 13165536 (England and Wales)















Unaudited Financial Statements for the Year Ended 31 January 2024

for

Konfir (UK) Ltd

Konfir (UK) Ltd (Registered number: 13165536)






Contents of the Financial Statements
for the Year Ended 31 January 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Konfir (UK) Ltd

Company Information
for the Year Ended 31 January 2024







DIRECTORS: C K Milligan
T Mcauliffe





REGISTERED OFFICE: Fieldfisher Riverbank House
2 Swan Lane
London
EC4R 3TT





REGISTERED NUMBER: 13165536 (England and Wales)





ACCOUNTANTS: GrowthBuilders Insight LLP
71-75 Shelton Street
Covent Garden
London
WC2H 9JQ

Konfir (UK) Ltd (Registered number: 13165536)

Balance Sheet
31 January 2024

2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible assets 4 870,752 808,467
Tangible assets 5 9,601 12,971
880,353 821,438

CURRENT ASSETS
Debtors 6 115,979 28,122
Cash at bank 1,627,632 12,081
1,743,611 40,203
CREDITORS
Amounts falling due within one year 7 302,505 74,481
NET CURRENT ASSETS/(LIABILITIES) 1,441,106 (34,278 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,321,459

787,160

CREDITORS
Amounts falling due after more than
one year

8

3,504,100

1,353,068
NET LIABILITIES (1,182,641 ) (565,908 )

Konfir (UK) Ltd (Registered number: 13165536)

Balance Sheet - continued
31 January 2024

2024 2023
Notes £ £ £ £
CAPITAL AND RESERVES
Called up share capital 5 5
Retained earnings (1,182,646 ) (565,913 )
(1,182,641 ) (565,908 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 19 August 2024 and were signed on its behalf by:





C K Milligan - Director


Konfir (UK) Ltd (Registered number: 13165536)

Notes to the Financial Statements
for the Year Ended 31 January 2024

1. STATUTORY INFORMATION

Konfir (UK) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
Significant accounting judgements and key sources of estimation uncertainty
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are listed below:

Going Concern
The nature of the company's business is such that there is considerable expenditure required to increase income generation as it continues to undertake market research and software development. For the year ended 31 January 2024, the company has recorded a loss before tax of £616,733 (2023: £507,155) and has net liabilities as at that date of £1,182,641 (2023: £565,908). The financial statements have been prepared on the going concern basis which assumes that the company will continue as a going concern for the foreseeable future.
The directors' assessment of going concern has been based on consideration of the level of cash held by the company at the date of approving these financial statements, the cost base of the company, reviewing forecasts and preparing a range of cashflow scenarios. They have also considered the continuing financial support of the company's parent undertaking, Konfir Limited, and its shareholders. Accordingly, the directors are satisfied that the company will be able to meet its liabilities as they fall due for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

Provisions and accruals
Provisions are recognised when the entity has a present obligation (legal or constructive) as a result of past event, and it is probable that the entity would be required to settle the probable outflow of resources, and a reliable estimate can be made of the amount of the obligation.

Konfir (UK) Ltd (Registered number: 13165536)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents amounts receivable for employment verification services net of VAT and trade discounts to the extent that the company has a right to consideration arising from the performance of its contractual obligations.
Revenue is recognised on completion of the verification service or the provision of the verification report to the customer. Where revenue is received for software licences, consultancy services or go to market support, revenue is recognised on the day the service commences and is apportioned on a straight line basis over the contract term as the services are rendered. Services are deemed to be delivered
on a continuous basis throughout the course of the contract.

Intangible assets
Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets are recognised 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.

Once an intangible asset is brought into use, amortisation is recognised so as to write off the cost or valuation of the asset less its residual value over the useful economic life on the following basis:

Software development - 3 years

At each reporting period end date, the company 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).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Computer Equipment etc - Straight line over 3 years.

Konfir (UK) Ltd (Registered number: 13165536)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Balance Sheet bank overdrafts are shown within Creditors.


Konfir (UK) Ltd (Registered number: 13165536)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued
Borrowing costs
Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Trade and other creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Konfir (UK) Ltd (Registered number: 13165536)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2023 - 6 ) .

4. INTANGIBLE FIXED ASSETS
Development
costs
£
COST
At 1 February 2023 914,588
Additions 435,610
At 31 January 2024 1,350,198
AMORTISATION
At 1 February 2023 106,121
Amortisation for year 373,325
At 31 January 2024 479,446
NET BOOK VALUE
At 31 January 2024 870,752
At 31 January 2023 808,467

Konfir (UK) Ltd (Registered number: 13165536)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

5. TANGIBLE FIXED ASSETS
Computer
equipment
£
COST
At 1 February 2023 17,768
Additions 3,132
At 31 January 2024 20,900
DEPRECIATION
At 1 February 2023 4,797
Charge for year 6,502
At 31 January 2024 11,299
NET BOOK VALUE
At 31 January 2024 9,601
At 31 January 2023 12,971

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 92,086 14,679
Accrued Income 12,002 1,003
VAT - 10,747
Prepayments 11,891 1,693
115,979 28,122

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade creditors 13,206 35,677
Social security and other taxes 23,396 17,833
Pensions 203 -
VAT 18,735 -
Other Creditors 2,016 -
Net wages 9,539 3,112
Accrued expenses 3,589 6,090
Deferred income 231,821 11,769
302,505 74,481

Konfir (UK) Ltd (Registered number: 13165536)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2024 2023
£ £
Amounts owed to group undertakings 3,504,100 1,353,068

9. RELATED PARTY DISCLOSURES

In the prior period Konfir Limited, the holding company, advanced the company £1,026,538. Under the loan agreement dated 28 February 2021, interest is charged on the balance advanced at the Bank of England base rate and unpaid interest capitalises monthly. Interest payable for the prior period was £15,124.

In the current year, Konfir Limited advanced the company a further £2,620,571 and charged interest of £131,184. The total amount owing to the holding company as at 31 January 2024 is £3,504,100. This balance is repayable 48 months from the date of the agreement.

10. ULTIMATE CONTROLLING PARTY

The controlling party is C K Milligan.