Company registration number 10016286 (England and Wales)
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Capita Corporate Director Limited
T F Vanoverschelde
Secretary
Capita Group Secretary Limited
Company number
10016286
Registered office
65 Gresham Street
London
England
EC2V 7NQ
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Income statement
3
Balance sheet
4
Statement of changes in equity
5
Notes to the financial statements
6 - 10
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The Directors present their Directors' Report and Financial statements for the year ended 31 December 2023.
Principal activities
Capita Financial Services Holdings Limited ('the Company') is a wholly owned subsidiary of Capita plc. Capita plc along with its subsidiaries are hereafter referred to as 'the Group'. The Company operates within the Capita Experience division of the Group.
The principal activity of the Company is that of a holding company. The Directors plan to liquidate the Company within twelve months from the approval of these financial statements since all of its direct and indirect subsidiaries are planned for liquidation. The Directors have therefore prepared these financial statements on the basis that the Company is no longer a going concern.
As shown in the Company's income statement on page 3, the Company has made a profit of £3,290,893 in 2023 as compared to £860,000 in 2022 due to reversal of impairment losses on its investment in subsidiary as the recoverable value has improved.
The balance sheet on page 4 of the financial statements shows the financial position at the year end. Net assets have increased from £17,755,345 in 2022 to £21,046,238 in 2023 primarily due to reversal of impairment losses. Details of amounts owed to its parent Company and fellow subsidiary companies is shown in note 5 to the financial statements.
Results and dividends
The results for the year are set out on page 3.
Directors
The Directors, who held office during the year and up to the date of signature of the financial statements were as follows:
Capita Corporate Director Limited
T F Vanoverschelde
Qualifying third party indemnity provisions
The Company has granted an indemnity to the directors of the Company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provisions remains in force as at the date of approving the directors' report.
Political donations
The Company made no political donations and incurred no political expenditure during the year (2022: £nil).
Post balance sheet date events
There are no significant events that occurred after the reporting period.
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Statement of Directors' responsibilities
The Directors are responsible for preparing the Directors’ 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 they have elected to prepare the financial statements in accordance with United Kingdom ('UK') accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.
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 its profit or loss for that period. In preparing these financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern (see note 1.1).
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
T F Vanoverschelde
Director
10 September 2024
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
2023
2022
Notes
£
£
Net impairment reversal
3
3,290,893
860,000
Profit and total comprehensive income for the year
3,290,893
860,000
The income statement has been prepared on the basis that the Company has ceased all its operations.
The notes and information on pages 6 to 10 form an integral part of these financial statements.
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
2023
2022
Notes
£
£
Current assets
Trade and other receivables
5
110,610
110,610
Investments in subsidiaries
6
20,935,628
17,644,735
Total assets
21,046,238
17,755,345
Net assets
21,046,238
17,755,345
Capital and reserves
Issued share capital
8
3
3
Retained earnings
21,046,235
17,755,342
Total equity
21,046,238
17,755,345
The notes and information on pages 6 to 10 form an integral part of these financial statements.
For the financial year ended 31 December 2023, the company was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.
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 members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 of the Companies Act 2006.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
These financial statements were approved by the board of directors and authorised for issue on
10 September 2024
10 September 2024
and are signed on its behalf by:
T F Vanoverschelde
Director
Company registration number 10016286 (England and Wales)
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Share capital
Retained earnings
Total equity
£
£
£
At 1 January 2022
3
16,895,342
16,895,345
Profit for the year
-
860,000
860,000
At 31 December 2022
3
17,755,342
17,755,345
Profit for the year
-
3,290,893
3,290,893
At 31 December 2023
3
21,046,235
21,046,238
Share capital
The balance classified as share capital is the nominal proceeds on issue of the Company's equity share capital, comprising three ordinary shares of £1 each.
Retained earnings
Represents accumulated profits of the Company.
The notes and information on pages 6 to 10 form an integral part of these financial statements.
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
1
Accounting policies
1.1
Basis of preparation
Capita Financial Services Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 65 Gresham Street, London, England, EC2V 7NQ. The company's principal activities and nature of its operations are disclosed in the Directors' report.
In determining the appropriate basis of preparation for the annual report and financial statements for the year ended 31 December 2023, the Company’s Directors (“the Directors”) are required to consider whether the Company can continue in operational existence for the foreseeable future, being a period of at least twelve months following the approval of these financial statements.
The Directors plan to liquidate the Company within twelve months from the approval of these financial statements because all of its subsidiaries are planned for liquidation. The Directors have therefore prepared the financial statements on the basis that the Company is no longer a going concern. The financial statements have been prepared on a breakup basis as at 31 December 2023. As a consequence, the Directors have considered the adjustments required to prepare the financial statements on a breakup basis. The expected realisable and settlement values for current assets and liabilities are not considered to be materially different from their carrying value at the balance sheet date. Therefore, the Directors consider that no further adjustments are required as a result of preparing the financial statements on a breakup basis.
1.2
Compliance with accounting standards
The Company has applied FRS101 – Reduced Disclosure Framework in the preparation of its financial statements.
The Company has prepared and presented these financial statements by applying the recognition, measurement and disclosure requirements of international accounting standards in conformity with the requirements of the Companies Act 2006.
The Company's ultimate parent company, Capita plc, includes the Company in its consolidated statements. The consolidated financial statements are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and with UK-adopted International Financial Reporting Standards ('IFRSs') and the Disclosure and the Transparency Rules of the UK's Financial Conduct Authority. They are available to the public and may be obtained from Capita plc’s website on https://www.capita.com/investors.
In these financial statements, the Company has applied the disclosure exemptions available under FRS 101 in respect of the following disclosures:
A cash flow statement and related notes;
Comparative period reconciliations for share capital;
Disclosures in respect of transactions with wholly owned subsidiaries;
Disclosures in respect of capital management;
The effects of new but not yet effective IFRSs; and
Disclosures in respect of the compensation of key management personnel.
Since the consolidated financial statements of Capita plc include equivalent disclosures, the Company has also taken the disclosure exemptions under FRS 101 available in respect of the following disclosure:
Certain disclosures required by IAS 36 in respect of the impairment of goodwill, indefinite life intangible assets and investment in subsidiaries; and
Certain disclosures required by IFRS 7 and certain disclosure exemptions as permitted by IFRS 13 Fair value measurement.
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.3
Change in accounting policies
The Company has adopted the new amendments to standards detailed below but they do not have a material effect on the Company's financial statements.
New amendments or interpretations | |
IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts | |
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) | |
Definition of Accounting Estimates (Amendments to IAS 8) | |
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) | |
International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) | |
1.4
Investments
The Company has investments in subsidiaries.
Investments in subsidiaries are initially recorded at cost. Subsequently they are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.
At each balance sheet date, the Company assesses whether there are indicators to reverse the previously recognised impairment loss. The reversals of impairment are only recognised where there has been a change in the estimates used to determine the investment’s recoverable amount since the last impairment loss was recognised.
1.5
Financial instruments
Trade and other receivables
The trade and other receivables have been measured and presented at their expected realisable values.
1.6
Taxation
Tax on the profit or loss 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 directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
1.7
Group accounts
The financial statements present information about the Company as an individual company and not about its Group. The Company has not prepared Group accounts because it is fully exempt from the requirement to do so by section 400 of the Companies Act 2006 since it is a subsidiary company of Capita plc, a company incorporated in England and Wales, and is included in the consolidated financial statements of that company.
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2
Significant accounting judgements, estimates and assumptions
The preparation of financial statements in accordance with generally accepted accounting principles requires the directors to make judgements and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported income and expense during the presented periods. Although these judgements and assumptions are based on the directors’ best knowledge of the amount, events or actions, actual results may differ.
3
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses/reversals have been recognised in income statement:
2023
2022
£
£
Reversal of impairment of investments in subsidiaries (refer to note 6)
(3,290,893)
(860,000)
(3,290,893)
(860,000)
4
Income tax
The reconciliation between tax charge and the accounting profit multiplied by the UK corporation tax rate for the years ended 31 December 2023 and 2022 is as follows:
2023
2022
£
£
Profit before taxation
3,290,893
860,000
Expected tax charge based on the weighted average Corporation Tax rate of 23.52% (2022: 19.00%)
774,018
163,400
Non-taxable income
(774,018)
(163,400)
Total adjustments
(774,018)
(163,400)
Total tax credit reported in the income statement
A change to the main UK corporation tax rate was substantively enacted on 24 May 2021. The rate applicable from 1 April 2023 increases from 19% to 25%.
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
5
Trade and other receivables
Current
2023
2022
£
£
Amounts due from Group companies
110,610
110,610
110,610
110,610
Amounts due from group companies are repayable on demand.
6
Investments
Subsidiaries
£
Cost
At 1 January 2023 & 31 December 2023
31,794,291
Impairment
At 1 January 2023
14,149,556
Reversal of impairment losses ♦
(3,290,893)
At 31 December 2023
10,858,663
Net book value
At 31 December 2023
20,935,628
At 31 December 2022
17,644,735
♦ In 2023, the recoverable value of the investment increased from £17,644,735 in 2022 to £20,935,628 as at 31 December 2023. An impairment loss of £3,290,893 has been reversed in 2023, to bring the carrying value of the investment to its recoverable amount of £20,935,628 at 31 December 2023.
7
List of Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of company
Registered office
Class of
% Held
shares held
Direct
Indirect
Capita Mortgage Administration Limited
65 Gresham Street, London, England, EC2V 7NQ
Ordinary shares
100.00
0
Capita Mortgage Software Solutions Limited
1 More London Place, London, SE1 2AF
Ordinary shares
0
100.00
CAPITA FINANCIAL SERVICES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
8
Share capital
2023
2022
2023
2022
Number
Number
£
£
Allotted, called up and fully paid
An ordinary shares of £1 each
At 1 January and 31 December
3
3
3
3
9
Employees
There were no employees during the year apart from the Directors (2022: nil).
10
Directors' remuneration
All Directors are paid by other companies within the Capita Group. The Company has not paid any fees or other remuneration to the Group based Directors related to the directorship role they provided to the Company as a part of their Group-wide executive management role. The Company has estimated that allocation of the qualifying services that these Group based Directors provided to the Company is inconsequential.
11
Controlling party
The parent company is Capita plc, a company registered in England and Wales. The consolidated financial statements of Capita plc are available from its registered office at 65 Gresham Street, London, England, EC2V 7NQ.
12
Post balance sheet date events
There are no significant events that occurred after the reporting period.
2023-12-312023-01-01Capita Corporate Director LimitedT F VanoverscheldeCapita Group Secretary LimitedfalseCCH SoftwareiXBRL Review & Tag 2022.20Statement that company entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companiesStatement that accounts have been prepared in accordance with the provisions of small companies regime.100162862023-01-012023-12-3110016286bus:Director12023-01-012023-12-3110016286bus:Director22023-01-012023-12-3110016286bus:CompanySecretary12023-01-012023-12-3110016286bus:RegisteredOffice2023-01-012023-12-31100162862023-12-311001628612023-01-012023-12-311001628612022-01-012022-12-3110016286core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31100162862022-01-012022-12-3110016286core:CurrentFinancialInstruments2023-12-3110016286core:CurrentFinancialInstruments2022-12-31100162862022-12-3110016286core:ShareCapital2023-12-3110016286core:ShareCapital2022-12-3110016286core:RetainedEarningsAccumulatedLosses2023-12-3110016286core:RetainedEarningsAccumulatedLosses2022-12-3110016286core:ShareCapital2021-12-3110016286core:RetainedEarningsAccumulatedLosses2021-12-31100162862021-12-3110016286bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3110016286core:ProvisionsForImpairmentInvestments2022-12-3110016286core:ProvisionsForImpairmentInvestments2023-12-3110016286core:Subsidiary12023-01-012023-12-3110016286core:Subsidiary22023-01-012023-12-311001628612023-01-012023-12-3110016286core:Subsidiary112023-01-012023-12-3110016286core:Subsidiary112022-01-012022-12-3110016286core:Subsidiary212022-01-012022-12-311001628612023-01-012023-12-3110016286bus:PrivateLimitedCompanyLtd2023-01-012023-12-3110016286bus:FRS1012023-01-012023-12-3110016286bus:AuditExempt-NoAccountantsReport2023-01-012023-12-3110016286bus:EntityNoLongerTradingButTradedInPast2023-01-012023-12-3110016286bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP