Year ended
31 December 2023
Company Number
Rainmaking InnovationLtd
Company information
Directors | |
| |
| |
| |
| |
|
|
|
|
Registred number | 08433320 |
|
|
|
|
Registred office | |
| |
| London |
| |
|
|
|
|
Indepedent Auditor | N/A |
Rainmaking InnovationLtd
Strategic Report
For the Year Ended 31 December 2023
Introduction
The directors present their Strategic Report and the financial statements for the year ended 31 December 2023.
Business review
Rainmaking Innovation Limited is an innovation consulting company focused on advising large corporations in the United Kingdom and, through branches, in several other geographies around the world.
Results and performance
The results for the year show a profit on ordinary activities before tax of £9.4M (2022: profit of £960K).
The shareholders’ funds totals £3.022m (2022: £460k).
Business environment
The business consulting industry is highly competitive in all of our markets, and due to low entry barriers new competitors emerge regularly allowing certain projects to be won by competitors at very low price points. We make sure to stay away from such projects and instead focus on those clients who understand that price and value often is correlated in our line of business.
Principal risks and uncertainties
The main business risk for Rainmaking Innovation Ltd. is a general downturn in the economy, given the cyclical nature of the Company's offerings.
Currently, the management team is not of the belief that a deep financial crisis is imminent, and thus does not foresee these external factors impacting the immediate future in a negative way.
The Company is not relying on single customers for significant portions of the turnover or profits.
Future developments
In 2023 an exit of the business in APAC contributed to an unusually large profit. In the coming years we foresee significantly lower results.
This report was approved by the board on September 18th 2024 and signed on its behalf
C Kølbek
Director
Rainmaking InnovationLtd
Directors Report
For the Year Ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Principal activity
Business review
The profit for the year, after taxation, was £ 9.4m
Dividends in the amount of 9.5m were paid out during the year
Directors
The directors who served during the year were:
C Kølbek
JP Schlipf
MA Kristensen
M Stigzelius
AMG Farcet
Going concern
The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for twelve months from the date of approval of the financial statements.
Post balance sheet events
No post balance sheet events recognised.
Disclosure of information from the directors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
| so far as the director is aware, there is no relevant information of which the Company is unaware; and |
|
|
| the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant information and to establish that the Company is aware of that information. |
This report was approved by the board on 18 Sept 2024 and signed on its behalf.
C Kølbek
Director
Directors' Responsibilities Statement For the Year Ended 31 December 2023
The directors are responsible for preparing the Strategic Report, 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 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:
| select suitable accounting policies and then apply them consistently; |
| make judgements and accounting estimates that are reasonable and prudent; and |
| prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
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.
Rainmaking Innovation Ltd
Statement of Comprehensive Income
For the Year Ended 31 December 2023
|
| 2023 | 2022 |
| Note | £000 | £000 |
Turnover |
| ||
|
|
|
|
Cost of sales |
| - | - |
|
|
|
|
Gross Profit |
| ||
|
|
|
|
Administrative expenses |
| ( | ( |
Other income |
| ||
|
|
|
|
Operating (loss)/profit |
| ||
|
|
|
|
Dividends received from undertakings |
| ||
Interest receivable |
|
| |
Interest payable and similar expenses |
| ( | ( |
Sale of shares in subsidiaries |
|
| |
Exceptional items |
| ( |
|
Exchange rate differences |
| ( |
|
|
|
|
|
(Loss)/profit before tax |
| ||
|
|
|
|
Taxon (loss)/profit |
| ||
|
|
|
|
(Loss)/profit for the financial year |
|
Rainmaking Innovation Ltd
Registered number: 08433320
Balance Sheet
As at 31 December 2023
|
| 2023 | 2022 |
| Note | £000 | £000 |
|
|
|
|
Financial assets |
|
|
|
Financial assets investments |
| ||
|
|
|
|
Current assets |
|
|
|
Debtors; amounts failing due within on year |
| ||
Cash and cash equivalents |
| ||
|
| ||
|
|
|
|
Current liabilities |
|
|
|
Creditors; amounts failing due within one year |
| ( | ( |
|
| ( | ( |
|
|
|
|
Net current assets |
| ( | |
|
|
|
|
Total assets less current liabilities |
| ||
|
|
|
|
Creditors: amounts falling due after more than one year |
|
|
|
|
|
|
|
Net assets |
| ||
|
|
|
|
Capital and reserves |
|
|
|
Called up share capital |
| ||
Profit and loss account |
| ( | ( |
|
|
|
|
Shareholders funds |
| ( | ( |
The financial statements were approved and authorised for issue by
Carsten Kølbek
Director
Rainmaking Innovation Ltd
Statement of Changes in Equity
For the Year Ended 31 December 2023
| Called up | Profit and | Shareholders |
| share capital | loss account | funds |
| £000 | £000 | £000 |
At 1 January 2023 | 1,076 | 461 | |
Comprehensive profit for the year |
|
|
|
Profit for the year | |||
Buy-back own shares |
|
| ( |
Dividends paid to shareholders |
|
| ( |
|
|
|
|
Total comprehensive income for the year |
| ||
|
|
|
|
At 31 December 2023 | 10,513 |
Statement of Changes in Equity
For the Year Ended 31 December 2022
| Called up | Profit and | Shareholders' |
| share capital | loss account | funds |
| £000 | £000 | £000 |
At | |||
|
|
|
|
Comprehensive income for the year |
|
|
|
Profit for the financial year | |||
Dividends paid to shareholders |
|
| ( |
|
|
|
|
Total comprehensive income for the year | |||
|
|
|
|
At | 1,076 | 461 |
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
1. General information
Rainmaking Innovation Limited is a private company limited by shares and incorporated in
2. Accounting policies
2.1 Basis of preparation of financial statements
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The presentation currency of these financial statements is euros. All amounts in the financial statements have been rounded to the nearest £1,000.
The following principal accounting policies have been applied consistently to all periods presented in these financial statements unless otherwise stated.
2.2 Financial reporting standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland”:
• | |
• | the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); |
• | the requirements of Section 11 Financial Instruments paragraphs 11.42,11.44 to 11.45,11.47,11.48(a)(iii), 11.48(a) (iv), 11.48(b) and 11.48(c); |
• | the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27,12.29(a), 12.29(b) and 12.29A; and |
• |
2.3 Going concern
In considering the appropriate basis on which to prepare the financial statements, the directors are required to consider whether the Company can continue in operational existence for the foreseeable future.
The Company generated a profit of £9,437.000(2022: profit of £960,000) during the year and had a net assets of £3,022,000 as at 31 December 2023 (2022: net assets of £460,000)
The company holds £1,252,000 of creditor balances that are owed to four entities related to the company.
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
2.3 Going concern (continued)
The Company effectively holds the cash balances of these entities and pays their liablities as they fall due.
The directors have therefore obtained a letter of support from these entities outlining the debt will not be called for a period of no less than 12 months from the date of signing these financial statements.
The directors have prepared the Company forecasts based on a worst-case scenario, including only signed contracts for the coming period. These forecasts show significant cash facilites available and on this basis, the directors have concluded that it is appropriate to prepare the Company's financial statements on the going concern basis.
2.4 Exemtption from preparing consolidated financial statements
2.5 Turnover
2.6
2.7
2.8 Debtors
2.9 Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty an notice of not more than 24 hours.
Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts af cash with insignificant risk of change in value.
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
2.10 Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence af impairment. If objective evidence af impairment is found, an impairment loss is recognised in the Statement af Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value af estimated cash flows discounted at the asset's original effective interest rate.
If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle an a net basis or to realise the asset and settle the liability simultaneously.
2.11 Creditors
2.12 Foreign currency translation Functional and presentation currency
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at periodend exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within finance income or costs. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
2.13 Finance costs
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated, capital instrument.
2.14 Dividends
2.16 Operating leases: The Company as a lessee
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
2.17 Interest income
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method
2.18 Taxation
Tax is recognised in the Statement af Comprehensive Income except that a charge attributable to an item af income and expense recognised as other comprehensive income ar to an item recognised directly in equity is also recognised in other comprehensive income ar directly in equity respectively.
Deferred tax balances are recognised in respect af all timing differences that have originated but not reversed by the Balance Sheet date, except that:
• | the recognition af deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal af deferred tax liabilities ar other future taxable profits; and |
• | any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values af liabilities acquired and the amount that will be assessed for tax.
Deferred tax is determined using tax rates and laws that have been enacted ar substantively enacted by the Balance Sheet date.
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
2.19
3. Judgements in applying accounting policies and key sources of estimation uncertainty
In preparing these financial statements, the directors have had to make the following judgements:
- Determine whether there are indicators of impairment of the Company's investments. Investments are held in unlisted company shares and their market value cannot be reliably determined. The investments are therefore held at cost less impairment. The required impairment is therefore calculated by applying a failure rate as in similar industries, adjusted for the nature, facts and circumstances of the investments being considered.
4. Turnover
The turnover of the Company is derived from the following geographical markets:
| 2023 | 2022 |
| £000 | £000 |
United Kingdom | 2,894 | 3,572 |
Rest of Europe | 161 | 83 |
Rest of the world | 421 | 1,453 |
|
5. Exceptional items
| 2023 | 2022 |
| £000 | £000 |
Taxes withheld abroad | (32) | (25) |
Costs related to sale of APAC business | (3,715) | 0 |
| ( | ( |
6. Other income
| 2023 | 2022 |
| £000 | £000 |
Income from settlements | ||
Recharges | ||
|
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
7. Operating loss
The operating loss is stated after (crediting)/charging: | 2023 | 2022 |
| £000 | £000 |
Exchange rate differences | ||
|
8. Auditor's remuneration
| 2023 | 2022 |
| £000 | £000 |
Fees payable to the Company's auditor for the audit of the Company's annual financial statements | ||
|
|
|
Fees payable to the Company's auditor in respect of: |
|
|
Accounts preparation | ||
Taxation services | ||
|
|
|
|
9. Staff numbers and costs
| 2023 | 2022 |
| £000 | £000 |
Staff costs, including directors' remuneration, were as follows: |
|
|
Wages and salaries | ||
Social security costs | ||
Cost of defined contribution scheme | ||
|
The average monthly number of employees, including the directors, during the year was as follows:
| 2023 | 2022 |
| £000 | £000 |
Directors | ||
Administrative | ||
|
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
10. Directors' remuneration
| 2023 | 2022 |
| £000 | £000 |
Director's emoluments |
11. Interest receivable
| 2023 | 2022 |
| £000 | £000 |
Other interest receivable |
12. Interest payable and similar expenses
| 2023 | 2022 |
| £000 | £000 |
Bank interest and similar expenses |
13. Fixed asset investments
| Investments | Investments |
|
| in subsidiary | in associates |
|
| companies |
| Total |
| £000 | £000 | £000 |
Cost |
|
|
|
At 1 January 2023 | 85 | 609 | 694 |
Removals |
| (287) | (287) |
Additions | 163 | 66 | 229 |
|
|
|
|
At 31 December 2023 | 248 | 388 | 636 |
|
|
|
|
Net book value |
|
|
|
|
|
|
|
At 31 December 2023 | |||
At 31 December 2022 |
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
Subsidiary undertakings
The following were direct subsidiary undertakings of the Company:
Name | Class of shares | Holding | Principal activity | |
% | ||||
% | ||||
% | ||||
% | ||||
% | ||||
% | ||||
% | ||||
% |
Participating interests Associates
Name | Registered office | Class of Shares | Holding | Principal activity | |
% | |||||
Finnovista Frontier Spain SL* | Paseo De Los Parques, 31 - Piso 13 DAIcobendas 28109 ES Calle Tonala | Ordinary | 50 | % | Running startupbootcamp accelerators |
Finnovista Frontier Mexico * | No 10 Cuauhtemoc Mexico City 06700 Mexico | Ordinary | 50 | % | Running startupbootcamp accelerators |
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
% | |||||
% | |||||
SBC Berlin 2012-2014 Ltd * | 45 Fitzroy Str. London W1T 6EB | Ordinary | 13 | % | Holding Company for investments in startups from accelerators |
% | |||||
% |
14. Debtors
| 2023 | 2022 |
| £000 | £000 |
Trade debtors | ||
Amounts owed by group undertakings | ||
Corporation tax | ||
Prepayments and accrued income | ||
| 3,240 | 1,513 |
15. Cash and cash equivalents
| 2023 | 2022 |
| £000 | £000 |
Cash at bank and in hand |
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
16. Creditors: amounts falling due within one year
| 2023 | 2022 |
| £000 | £000 |
Other loans | ||
Trade Creditors | ||
Amounts owed to group undertakings | ||
Corporation tax | ||
Other creditors | ||
Accruals and deferred income | ||
| 1,574 | 1,754 |
17. Creditors: amounts falling due after more than one year
| 2023 | 2022 |
| £000 | £000 |
Amounts owed to group undertakings |
18. Loans
Analysis of the maturity of loans is given below: | 2023 | 2022 |
| £000 | £000 |
Amounts falling due within one year |
|
|
Other loans | ||
|
|
|
Amounts falling due 1-2 years |
|
|
Amounts owed to group undertakings | ||
|
|
|
Amounts falling due 2-5 years |
|
|
Amounts owed to group undertakings | ||
|
Rainmaking Innovation Ltd
Notes to the Financial Statements
For the Year Ended 31 December 2023
19. Share Capital
| 2023 | 2022 |
| £000 | £000 |
|
|
|
Allotted, called up and fully paid |
|
|
|
|
|
- | - | |
- | - | |
- | - | |
| - | - |
The ordinary shares have full voting rights and do not confer any rights of redemption. They have full dividend and capital distribution rights once holders of preference shares have received an aggregate amount of €969,000.
A ordinary shares have full voting rights and do not confer any rights of redemption. They have full dividend and capital distribution rights once holders of preference and ordinary shares have received an aggregate amount of £3,650,000.
20. Reserves
The Company has the following reserves:
Profit and loss account
The profit and loss account represents cumulative profits and losses net of dividends paid and other adjustments.
21. Related party transactions
22. Controlling party
The Company's immediate parent undertaking is