Company registration number 13974196 (England and Wales)
WIREX INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
WIREX INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
Mr Dmitry Lazarichev
(Appointed 14 March 2022)
Mr Pavel Matveev
(Appointed 14 March 2022)
Secretary
OHS Secretaries Limited
Company number
13974196
Registered office
9th Floor 107 Cheapside
London
EC2V 6DN
Auditor
MMBA London Ltd
16 Upper Woburn Place
Kings Cross
London
WC1H 0AF
WIREX INTERNATIONAL LIMITED
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
Notes to the financial statements
12 - 19
WIREX INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the Period ended 30 June 2023.

Principal activities

The principal activity of the company is providing business support services to its fellow entities.

Review of the business

The revenue of £3,934,511 during the period was generated from provision of human resources, facilities, professional and administration services, earning a profit of £260,705.

Principal risks and uncertainties

The risk of regulatory changes adversely impacts Wirex International’s position and capacity to conduct business.

The Group has proactively engaged regulators to gain clarity on the evolving regulatory landscape affecting the digital asset industry. The Group will continue to deploy its resources to diligently monitor the market and regulatory environment for threats and opportunities.

The risk of loss resulting from inadequate or failed policies or controls, key people and knowledge, systems and external events in respect of new product implementations, entering new markets and sustainability of key agreements with banking partnerships.

The Group actively monitors its operations and documents key business processes to facilitate knowledge transfers in the event of team member turnover. The Group conducts regular third-party penetration testing.

The risk of loss resulting from data protection or privacy failures and incomplete, inaccurate or untimely reporting of financial and operating information leading to potential fines, penalties or sanctions.

The Group has a robust and growing team of compliance professionals that ensure that all members of staff have sufficient training to ensure adherence to reporting and other regulatory requirements. Compliance, Legal and Finance teams across the Group combine efforts to ensure timely and accurate reporting to regulatory bodies.

The risk of loss resulting from employee and third-party fraud risk as well as product and engineering risks.

The Group employs strict protocols to ensure that customer data and assets are safeguarded. This includes ongoing monitoring of platform activity and reconciliation of transactions against platform data.

The risk that Wirex International does not have sufficient financial resources to meet its commitments as they fall due.

Wirex Group maintains adequate levels of liquidity to ensure that it continues to meet foreseeable and unexpected needs. Daily monitoring and control processes are in place to address internal and regulatory liquidity requirements.

 

 

 

 

 

 

 

 

 

WIREX INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 2 -

The risk related to Wirex International Limited that it will not continue to be a going concern.

The directors have forecasted the cashflows of the Group and have determined that there are sufficient resources for Wirex International Limited to meet its debts as they fall due for the foreseeable future, and therefore they have prepared the financial statements of the Company on a going concern basis.

 

In assessing the going concern of the Group, the directors perform stress testing analysis to determine the impact of significant withdrawals of customer funds and have determined that whilst they are confident they have the liquid resources available to meet the expected levels of withdrawals, they acknowledge that under the most extreme scenarios of customer withdrawals there could be a shortfall of available liquid assets and therefore uncertainty in relation to going concern at the Group level. Given that the company currently depends on the Group, there is consequently an uncertainty regarding the company's ability to continue as a going concern as well.

Other performance indicators

The Board monitors the progress of the company by reference to the following KPls:

 

 

2023

 

£

Revenue

3,934,511

Gross profit

332,154

Net assets

260,805

 

Other information and explanations

 

Future developments

Key elements of the company's business strategy include:

 

Promoting the success of the company

General confirmation of Directors' duties

Wirex's Board has a clear framework for determining the matters within the company. Certain financial and strategic thresholds have been determined to identify matters requiring Board consideration and approval.

When making decisions, each Director ensures that they act in the way they consider, in good faith, would most likely promote the company's success for the benefit of its members as a whole, and in doing so have regard (among other matters) to:

 

S172(1) (A) "The likely consequences of any decision in the long term"

 

The Directors recognise how our operations are viewed by different parts of society and before decisions are made they consult with various internal committees. Given the complexity of the industry we operate in, the Directors have taken the decisions they believe best support Wirex's strategic ambitions.

S172(1) (B) "The interests of the company's employees"

 

The Directors recognise that Wirex employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the Directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible.

WIREX INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 3 -

S172(1) (C) "The need to foster the company's business relationships with suppliers, customers and others"

 

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers and regulators. Wirex seeks the promotion and application of certain general principles in such relationships. The ability to promote these principles effectively is an important factor in the decision to enter into or remain in such relationships. The businesses continuously assess the priorities related to customers and those with whom we do business, and the Board engages with the businesses on these topics, for example, within the context of business strategy updates and investment proposals.

S172(1) (D) "The impact of the company's operations on the community and the environment"

 

This aspect is inherent in our strategic ambitions, most notably in our ambitions to thrive through the global digital currency transition. As such, the Board receives information on these topics to provide relevant information for specific Board decisions.

S172(1) (E) "The desirability of the company maintaining a reputation for high standards of business conduct"

 

The Board periodically reviews and approves clear frameworks, to ensure that its high standards are maintained both within the businesses and the business relationships we maintain. This, complemented by the ways the Board is informed and monitors compliance with relevant governance standards, help ensure its decisions are taken and Wirex acts in ways that promote high standards of business conduct.

S172(1) (F) "The need to act fairly as between members of the company"

 

After weighing up all relevant factors, the Directors consider which course of action best enables delivery of our strategy in the long term, taking into consideration the impact on stakeholders. In doing so, our directors act fairly between the Company's members.

On behalf of the board

Mr Dmitry Lazarichev
Director
6 September 2024
WIREX INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
- 4 -

The directors present their annual report and financial statements for the Period ended 30 June 2023.

Results and dividends

The profit for the year, after taxation, amounted to £260,705.

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

Directors

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

Mr Dmitry Lazarichev
(Appointed 14 March 2022)
Mr Pavel Matveev
(Appointed 14 March 2022)
Auditor

The independent auditors, MMBA London Ltd, (Chartered Certified Accountants and Statutory Auditors) will be proposed for reappointment for the year ended 30 June 2024 in accordance with section 485 of the Companies Act 2006.

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.

Strategic report

In accordance with s414C(ll) of the Companies Act, the company has chosen to outline in the Strategic report information on the key risks and financial risk management policies to which the company is affected.

WIREX INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 5 -
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.

On behalf of the board
Mr Dmitry Lazarichev
Director
6 September 2024
WIREX INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WIREX INTERNATIONAL LIMITED
- 6 -
Opinion

We have audited the financial statements of Wirex International Limited (the 'company') for the period ended 30 June 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of 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 101 'Reduced Disclosure Framework' (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

We draw attention to note 1.4 to the financial statements, which indicates that the company is reliant on the continued support of the group headed by Wirex Holdings Limited ('the group') in order for the company to meet its debts as they fall due.

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:

WIREX INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WIREX INTERNATIONAL LIMITED (CONTINUED)
- 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion, we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, drawing on our broad sector experience, and considered the risk of acts by the Company that were contrary to these laws and regulations, including fraud.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and other sector specific laws and regulations.

WIREX INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WIREX INTERNATIONAL LIMITED (CONTINUED)
- 8 -

We made enquiries of management with regards to compliance with applicable laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the Directors meetings, minutes of departmental meetings held, legal reports provided by the compliance department and correspondence between the Company and its solicitors.

Our tests also included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of bias by the management that represented a risk of material misstatement due to fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Mr Waqqas Shabir Memon, BSc, FCCA
Senior Statutory Auditor
For and on behalf of MMBA London Ltd
6 September 2024
Chartered Certified Accountants &
Statutory Auditor
16 Upper Woburn Place
Kings Cross
London
WC1H 0AF
WIREX INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2023
- 9 -
Period
ended
30 June
2023
Notes
£
Revenue
3
3,934,511
Administrative expenses
(3,602,357)
Profit before taxation
332,154
Tax on profit
7
(71,449)
Profit for the financial Period
260,705

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

WIREX INTERNATIONAL LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
Notes
£
£
Non-current assets
Property, plant and equipment
8
46,360
Current assets
Trade and other receivables
9
3,005,437
Current liabilities
10
(2,790,992)
Net current assets
214,445
Net assets
260,805
Equity
Called up share capital
12
100
Retained earnings
260,705
Total equity
260,805
The financial statements were approved by the board of directors and authorised for issue on 6 September 2024 and are signed on its behalf by:
Mr Dmitry Lazarichev
Director
Company registration number 13974196 (England and Wales)
WIREX INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2023
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 14 March 2022
-
0
-
0
-
Period ended 30 June 2023:
Profit and total comprehensive income
-
260,705
260,705
Issue of share capital
12
100
-
100
Balance at 30 June 2023
100
260,705
260,805
WIREX INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
- 12 -
1
Accounting policies
Company information

Wirex International Limited is a private company limited by shares incorporated in England and Wales. The registered office is 9th Floor 107 Cheapside, London, EC2V 6DN.

1.1
Reporting period

The financial statements have been prepared for the period from 14 March 2022 to 30 June 2023. This is the company's first set of financial statements since its incorporation on 14 March 2022.

 

The financial statements are presented in pound sterling, which is the functional currency of the company. The financial statements have been prepared in accordance with Financial Reporting Standard 101 (FRS 101) 'Reduced Disclosure Framework'.

 

As this is the company's first reporting period, there are no comparative figures presented.

1.2
Accounting convention

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.

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 preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 2).

 

The principal accounting policies adopted are set out below.

1.3
Financial Reporting Standard 101 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions under FRS 101:

 

· the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present

comparative information in respect of:

1. paragraph 79(a)(iv) of IAS 1;

2. paragraph 73(e) of IAS 16 Property, Plant and Equipment;

3. paragraph 118(e) of IAS 38 Intangible Assets;

· the requirements of paragraphs l0(d), lO(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of

IAS 1 Presentation of Financial Statements;

· the requirements of IAS 7 Statement of Cash Flows;

· the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures; and

· the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS

36 Impairment of Assets.

WIREX INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Going concern

Wirex International Limited revenue and financial health are significantly dependent on the receipts of payments from other group entities. The ability of Wirex group's trueentities to meet these obligations is closely tied to its receivables from Wirex Holdings Limited. As such, the financial stability of Wirex Holdings Limited directly impacts Wirex International Limited liquidity and operational stability.

 

The directors have forecasted the cash flows of the Group and have determined that there are sufficient resources for the Group companies to meet their debts as they fall due, and provide financial support for a period of 12 months from the date of approval of these financial statements, and therefore the financial statements of the Group are prepared on a going concern basis.

 

The group is primarily involved in the cryptocurrency markets. The cryptocurrency markets are inherently volatile and the Group's management continually monitors its exposure to maintain requisite liquidity levels.

 

1.5
Revenue

Revenue is derived from intercompany transactional services entered into with group undertakings herein referred to as Payment Service Fee.

 

Wirex International Limited charges a 10% margin to other group undertakings on its cost that is incurred to support future trading and the monetisation of intellectual property of the Group as a whole.

 

1.6
Property, plant and equipment

Property, plant and equipment 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:

Computers
Over 3 years

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 credited or charged to profit or loss.

1.7
Financial instruments

The company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The company's accounting policies in respect of financial instruments transactions are explained below:

 

Financial assets and financial liabilities are initially measured at fair value.

 

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.

WIREX INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 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.

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.

WIREX INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.8
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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
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.

1.11
Retirement benefits

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

WIREX INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 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.

3
Revenue
2023
£
Revenue analysed by class of business
Payment service fee
3,934,511
4
Operating profit
2023
Operating profit for the period is stated after charging:
£
Exchange losses
112
Depreciation of owned property, plant and equipment
46,428
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the company
2,250
6
Employees

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

2023
Number
Compliance
14
Finance
6
Human resource
3
Marketing
10
Total
33
WIREX INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
£
Wages and salaries
2,478,794
Social security costs
258,903
Pension costs
72,938
2,810,635
7
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
71,449

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

2023
£
Profit before taxation
332,154
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
83,039
Capital allowances in excess of depreciation
(11,590)
Taxation charge for the period
71,449
WIREX INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 18 -
8
Property, plant and equipment
Computers
£
Cost
At 14 March 2022
-
0
Additions
92,788
At 30 June 2023
92,788
Depreciation and impairment
At 14 March 2022
-
0
Depreciation charged in the Period
46,428
At 30 June 2023
46,428
Carrying amount
At 30 June 2023
46,360
9
Trade and other receivables
2023
Amounts falling due within one year:
£
Amounts owed by group undertakings
2,994,630
Prepayments and accrued income
10,807
3,005,437
10
Current liabilities
2023
£
Trade payables
335,818
Amounts owed to group undertakings
2,368,448
Corporation tax
71,449
Other payables
8,859
Accruals and deferred income
6,418
2,790,992
WIREX INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 19 -
11
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
72,938

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. At 30 June 2023, the company owed £3,068 to a defined contribution plan for its employees.

 

12
Share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
100
100
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