Company Registration No. 11542617 (England and Wales)
Risq Research Limited
Unaudited financial statements
for the year ended 31 December 2023
Pages for filing with the registrar
Risq Research Limited
Contents
Page
Statement of financial position
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
Risq Research Limited
Statement of financial position
As at 31 December 2023
31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
16,024
Tangible assets
5
15,128
44,433
Investments
6
1,000,100
1,000,100
1,031,252
1,044,533
Current assets
Debtors
7
1,621,609
860,979
Cash at bank and in hand
85,503
58,252
1,707,112
919,231
Creditors: amounts falling due within one year
8
(6,088,072)
(4,112,560)
Net current liabilities
(4,380,960)
(3,193,329)
Net liabilities
(3,349,708)
(2,148,796)
Capital and reserves
Called up share capital
9
28,200
28,200
Share premium account
1,465,200
1,465,200
Profit and loss reserves
(4,843,108)
(3,642,196)
Total equity
(3,349,708)
(2,148,796)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small 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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Risq Research Limited
Statement of financial position (continued)
As at 31 December 2023
31 December 2023
2
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
John Nagle
Director
Company Registration No. 11542617
Risq Research Limited
Statement of changes in equity
For the year ended 31 December 2023
3
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
28,200
1,465,200
(3,354,541)
(1,861,141)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(287,655)
(287,655)
Balance at 31 December 2022
28,200
1,465,200
(3,642,196)
(2,148,796)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(1,200,912)
(1,200,912)
Balance at 31 December 2023
28,200
1,465,200
(4,843,108)
(3,349,708)
Risq Research Limited
Notes to the financial statements
For the year ended 31 December 2023
4
1
Accounting policies
Company information
Risq Research Limited is a private company limited by shares incorporated in England and Wales. The registered office is 80 Cannon Street, London, EC4N 6HL.
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
The company, should the need arise, is dependent for its working capital on funds from a connected company and its shareholders. The connected company and its shareholders have provided the company with an undertaking that for a period of at least 12 months from the date of approval of these financial statements, they will continue to make available such funds as are needed by the company to enable it to meet its liabilities as and when they fall due. This, together with its own working capital, will in the opinion of the directors enable the company to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.true
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.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
20% straight line
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.
Risq Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
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:
Leasehold improvements
over the term of the lease
Fixtures and fittings
over the term of the lease
Computers
33% 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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.7
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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.
1.8
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.
Risq Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
6
1.9
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 statement of financial position 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, 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.
1.10
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.
1.11
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.
Risq Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
7
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.12
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 fixed 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
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.
1.16
Research and development costs
Research expenditure is written off in the income statement in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated and meet the accounting requirements of an intangible fixed asset as determined by FRS 102.
Risq Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
8
2
Critical accounting 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.
Carrying value of investments
The directors have applied judgement in order to determine whether there are indicators of impairment of the company's investments at the year end.
The directors have considered various factors in making their assessment, concluding that the amounts are fully recoverable and that there are no indicators of impairment of the company's investments at the year end.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
15
13
Risq Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
9
4
Intangible fixed assets
Software
£
Cost
At 1 January 2023
Additions
17,273
At 31 December 2023
17,273
Amortisation and impairment
At 1 January 2023
Amortisation charged for the year
1,249
At 31 December 2023
1,249
Carrying amount
At 31 December 2023
16,024
At 31 December 2022
5
Tangible fixed assets
Leasehold improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
128,060
72,503
200,563
Additions
5,398
5,398
At 31 December 2023
128,060
77,901
205,961
Depreciation and impairment
At 1 January 2023
109,333
46,797
156,130
Depreciation charged in the year
18,727
15,976
34,703
At 31 December 2023
128,060
62,773
190,833
Carrying amount
At 31 December 2023
15,128
15,128
At 31 December 2022
18,727
25,706
44,433
Risq Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
10
6
Fixed asset investments
2023
2022
£
£
Investments
1,000,100
1,000,100
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2023 & 31 December 2023
1,000,100
Carrying amount
At 31 December 2023
1,000,100
At 31 December 2022
1,000,100
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
398,877
221,675
Amounts owed by group undertakings
1,097,419
548,573
Other debtors
125,313
90,731
1,621,609
860,979
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
6,442
133,052
Amounts owed to connected entities
5,296,366
3,484,322
Other creditors
785,264
495,186
6,088,072
4,112,560
Risq Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
11
9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued but not fully paid
2,820,000 Ordinary shares of 1p each
28,200
28,200
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Lease payments
381,411
96,350
11
Related party transactions
The company has taken the exemption detailed in Section 33 of FRS 102 "Related Party Disclosures" to not disclose details of transactions undertaken between companies within a wholly owned group.
The company previously had a loan with its shareholders. The amount outstanding at the balance sheet date was £nil (2022: £280,000). The full loan was repaid during 2023.
The company has a loan payable to a related party entity, by way of common shareholders. The amount outstanding at the balance sheet date was £5,296,366 (2022: £3,484,322), the loan is interest free and repayable on demand. The related party loan provider and shareholders have provided a letter of support supporting the loan balance, as also documented in the going concern accounting policy note.
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