Company registration number 08100986 (England and Wales)
MYPINPAD LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
MYPINPAD LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 12
MYPINPAD LTD
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 1 -
2024
2023
Notes
£
£
FIXED ASSETS
Intangible assets
4
26,975,233
25,563,064
Tangible assets
5
44,907
73,191
27,020,140
25,636,255
CURRENT ASSETS
Debtors
6
1,421,506
1,788,635
Cash at bank and in hand
599,391
449,514
2,020,897
2,238,149
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
7
(1,620,358)
(1,591,783)
NET CURRENT ASSETS
400,539
646,366
TOTAL ASSETS LESS CURRENT LIABILITIES
27,420,679
26,282,621
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
8
(43,539,810)
(38,471,343)
PROVISIONS FOR LIABILITIES
(579,850)
(638,948)
NET LIABILITIES
(16,698,981)
(12,827,670)
CAPITAL AND RESERVES
Called up share capital
187
187
Share premium account
2,951,183
2,951,183
Other reserves
(22,028)
-
0
Profit and loss reserves
(19,628,323)
(15,779,040)
TOTAL EQUITY
(16,698,981)
(12,827,670)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

MYPINPAD LTD
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2024
30 June 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
Richard Forlee
Director
Company registration number 08100986 (England and Wales)
MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
1
ACCOUNTING POLICIES
Company information

Mypinpad Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3 Assembly Square, Britannia Quay, Cardiff, CF10 4PL.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis, The directors have expectation that the group will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt in the group's ability to continue as a going concern. The company has generated a loss of £3,849,283 (2023: £ 5,236,989) and had a net current asset of £400,539 (2023: £646,366) at the year end. The directors confirm that the amount owed to Licentia amounting to £43,539,810 would not be recalled for the next twelve months and is only repayable when it is financially viable.

 

At the date of signing the financial statements, forecasts prepared by the management shows the company having sufficient headroom to meet its liabilities as and when they fall due for a period of 12 months from the date of signing. This is dependent upon fundraising which is currently being anticipated and explored. This future funding should generate a positive balance sheet however no committed funding or letters of intent exist yet.

 

The directors recognise that the absence of any formal long term funding arrangement creates a level of uncertainty and therefore risk that the required level of support may not be received for the necessary timescales.

 

Notwithstanding the material uncertainties described above, on the basis that future support can be agreed in the relevant timescale, the directors have an expectation that the company can continue to meet its liabilities as they fall due, for a period of at least 12 months from the date of approval of this report.

MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
ACCOUNTING POLICIES
(Continued)
- 4 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off in the period in which it is incurred.

 

Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:

 

· It is technically feasible to complete the intangible asset so that it will be available for use or sale;

· There is the intention to complete the intangible asset and use or sell it;

· There is the ability to use or sell the intangible asset;

· The use or sale of the intangible asset will generate probable future economic benefits;

· There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and

· The expenditure attributable to the intangible asset during its development can be measured reliably.

 

Expenditure that does not meet the above criteria is expensed as incurred.

 

Amortisation is charged on an estimated useful life of 5 - 15 years over the cost of the asset.

1.5
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.

MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
ACCOUNTING POLICIES
(Continued)
- 5 -

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:

Plant and equipment
25% straight line
Computers
25% straight line

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.

1.6
Impairment of fixed assets

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). 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 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, 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 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 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.

1.7
Cash and cash equivalents

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.

MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
ACCOUNTING POLICIES
(Continued)
- 6 -
1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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 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.

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 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.

1.9
Taxation

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

MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
ACCOUNTING POLICIES
(Continued)
- 7 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 profit and loss account, 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
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.

MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

 

 

Research and development cost capitalisation

Research cost is expensed to profit and loss and the development cost is capitalised to intangible asset. This is reviewed yearly based on the development of the solution. The main cost involved in the development of the product is the consultants fee and wages. These are estimated based on their salaries and rates. Uncertainty lies in estimating the actual timescale used for the development of the product and hence apportioning the cost based on the time input.

 

Amortisation period is 5 years but the uncertainty lies in the product being obsolete before the useful life of the asset due to rapid progress of technological advancement in the current market conditions. Thus indicating factors to provide impairments over the assets which also reflects an uncertainty in pinpointing which costs to be impaired.

3
EMPLOYEES

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

2024
2023
Number
Number
Total
45
57
MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
4
INTANGIBLE FIXED ASSETS
Other
£
Cost
At 1 July 2023
31,005,920
Additions
4,884,998
Revaluation
(2,022,224)
At 30 June 2024
33,868,694
Amortisation and impairment
At 1 July 2023
5,442,856
Amortisation charged for the year
3,472,827
Eliminated on revaluation
(2,022,222)
At 30 June 2024
6,893,461
Carrying amount
At 30 June 2024
26,975,233
At 30 June 2023
25,563,064
MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
5
TANGIBLE FIXED ASSETS
Plant and machinery etc
£
Cost
At 1 July 2023
185,321
Additions
13,844
Disposals
(8,300)
At 30 June 2024
190,865
Depreciation and impairment
At 1 July 2023
112,130
Depreciation charged in the year
39,492
Eliminated in respect of disposals
(5,664)
At 30 June 2024
145,958
Carrying amount
At 30 June 2024
44,907
At 30 June 2023
73,191

 

6
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
271,395
356,112
Other debtors
1,150,111
1,432,523
1,421,506
1,788,635
MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
7
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
£
£
Trade creditors
179,409
481,610
Amounts owed to group undertakings
640,018
-
0
Corporation tax
(110,930)
-
0
Other taxation and social security
91,210
9,373
Other creditors
820,651
1,100,800
1,620,358
1,591,783
8
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
£
£
Amounts owed to group undertakings
43,539,810
38,471,343

Company owes £43,539,810 (2023: 38,471,343) to Licentia Group Ltd ("the parent") and owes Transaction Technologies Pte Ltd £640,019 as at 30 June 2024. The directors confirmed that the amount owed to the parent company is not repayable for the next 12 months and the payment would be only made once it is financially viable for the company.

9
DEFERRED TAXATION

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Asset on other timing
579,850
638,948
MYPINPAD LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
DEFERRED TAXATION
(Continued)
- 12 -
2024
Movements in the year:
£
Liability at 1 July 2023
638,948
Credit to profit or loss
(59,098)
Liability at 30 June 2024
579,850

 

10
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.

Senior Statutory Auditor:
Simon Tee
Statutory Auditor:
Kilsby & Williams LLP
Date of audit report:
20 September 2024
11
PARENT COMPANY

The ultimate parent company is Licentia Group Limited, which is registered in England & Wales. Licentia Group Limited holds 100% of the allotted share capital of the company.

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