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Registered number: 05998321










FINCORE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
FINCORE LIMITED
 

COMPANY INFORMATION


Directors
S K Christensen 
P L Popovic 
W W Scott 




Registered number
05998321



Registered office
Wilson's Corner
23 Wilson Street

3rd Floor

London

EC2M 2TE




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
FINCORE LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Analysis of net debt
11
Notes to the financial statements
12 - 23


 
FINCORE LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their Strategic Report for the year ended 31 December 2023, providing an overview overview of our company's performance and accomplishments for the fiscal year.
Principal Activity
Our primary focus remains on the development, maintenance, and support of computer software. We are dedicated to delivering exceptional products and services to our clients while maintaining our competitive standing within the market. Additionally, we've expanded our endeavours to include the creation of proprietary software products. This strategic move allows us to capitalise on previous investments by offering these products to a broader customer base.

Business review
 

We are excited to share the outstanding performance of our company throughout the fiscal year 2023. Despite operating in a fiercely competitive environment, we have achieved robust results that align with our budgetary projections. Central to our success has been our continuous investment in research and development, positioning us favourably to retain current clients and secure new contracts in the future.

Moreover, we prioritize the growth and development of our employees. By investing in their training and professional advancement, we not only retain top talent but also attract individuals who align with our values and commitment to excellence. We firmly believe that nurturing our workforce will sustain our competitive advantage and enable us to consistently deliver superior products and services to our clients.

Principal risks and uncertainties
 
We have implemented measures to mitigate risks stemming from Brexit and the ongoing impact of the COVID-19 pandemic. These include diversifying our cash deposits across multiple currencies and accounts to minimise currency and compliance risks.

Financial key performance indicators
 
We are delighted to announce that we have achieved our budgetary and other financial targets for the fiscal year. Our financial performance is rigorously monitored by the Directors against the approved annual budget, ensuring operational effectiveness and efficiency. Additionally, both the Directors and Management actively oversee cash flow and liquidity to maintain a robust financial position and reserves.

Appreciation

The Directors express their sincere appreciation to our dedicated, professional, and talented employees for their unwavering hard work and commitment. It is through their efforts that we continue to thrive and excel in our endeavours.


This report was approved by the board and signed on its behalf.



W W Scott
Director

Date: 19 September 2024

Page 1

 
FINCORE LIMITED
 

 
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.

Directors' responsibilities statement

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,306,513 (2022 - £2,350,877).


Directors

The directors who served during the year were:

S K Christensen 
P L Popovic 
W W Scott 

Disclosure of information to auditor

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 audit information of which the Company's auditor 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 audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 2

 
FINCORE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor

The auditor, James Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 September 2024 and signed on its behalf.
 





W W Scott
Director

Page 3

 
FINCORE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FINCORE LIMITED
 

Opinion


We have audited the financial statements of Fincore Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 United Kingdom, including the Financial Reporting Council'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


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


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 ReportOur 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.


Page 4

 
FINCORE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FINCORE LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.


Page 5

 
FINCORE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FINCORE LIMITED (CONTINUED)


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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows: 

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regualtions;
Reviewing finanical statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management overide of controls, including testing of journal entries and other adjustments for appropriatness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimate for bias.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Alexander Peal BSc(Hons) FCA DChA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

19 September 2024
Page 6

 
FINCORE LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
20,407,068
18,799,165

Cost of sales
  
(13,141,917)
(12,022,144)

Gross profit
  
7,265,151
6,777,021

Administrative expenses
  
(5,589,304)
(5,367,568)

Other operating income
 5 
564,180
939,703

Operating profit
 6 
2,240,027
2,349,156

Interest receivable and similar income
 10 
66,486
1,721

Profit before tax
  
2,306,513
2,350,877

Profit for the financial year
  
2,306,513
2,350,877

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 23 form part of these financial statements.

Page 7

 
FINCORE LIMITED
REGISTERED NUMBER: 05998321

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
99,333
132,866

Investments
 15 
401,102
422,565

  
500,435
555,431

Current assets
  

Debtors: amounts falling due within one year
 16 
3,515,803
2,416,332

Debtors: amounts falling due after more than one year
 16 
-
78,329

Cash at bank and in hand
 17 
7,991,414
6,035,880

  
11,507,217
8,530,541

Creditors: amounts falling due within one year
 18 
(2,512,404)
(1,703,870)

Net current assets
  
 
 
8,994,813
 
 
6,826,671

Total assets less current liabilities
  
9,495,248
7,382,102

Provisions for liabilities
  

Other provisions
 19 
-
(43,367)

  
 
 
-
 
 
(43,367)

Net assets
  
9,495,248
7,338,735


Capital and reserves
  

Called up share capital 
 20 
6
6

Share premium account
 21 
7,892
7,892

Profit and loss account
 21 
9,487,350
7,330,837

  
9,495,248
7,338,735


The financial statements were approved and authorised for issue by the board and were signed on its behalf by 

W W Scott
Director
Date: 19 September 2024

The notes on pages 12 to 23 form part of these financial statements.

Page 8

 
FINCORE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
6
7,892
7,330,837
7,338,735



Profit for the year
-
-
2,306,513
2,306,513

Dividends: Equity capital
-
-
(150,000)
(150,000)


At 31 December 2023
6
7,892
9,487,350
9,495,248


The notes on pages 12 to 23 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
6
7,892
6,140,892
6,148,790



Profit for the year
-
-
2,350,877
2,350,877

Dividends: Equity capital
-
-
(1,160,932)
(1,160,932)


At 31 December 2022
6
7,892
7,330,837
7,338,735


The notes on pages 12 to 23 form part of these financial statements.

Page 9

 
FINCORE LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
2,306,513
2,350,877

Adjustments for:

Depreciation of tangible assets
99,667
106,164

Loss on disposal of tangible assets
570
-

Interest received
(66,486)
(1,721)

Taxation charge
(564,180)
(939,703)

Decrease in debtors
23,783
114,513

(Increase)/decrease in amounts owed by related parties
(480,745)
44,080

Increase in creditors
808,534
870,305

(Decrease)/increase in provisions
(43,367)
2,000

Corporation tax received
-
880,107

Impairment of fixed asset investment
-
163,536

Investment fx movement
21,463
-

Net cash generated from operating activities

2,105,752
3,590,158


Cash flows from investing activities

Purchase of tangible fixed assets
(66,704)
(118,165)

Purchase of fixed asset investments
-
(442,340)

Interest received
66,486
1,721

Net cash from investing activities

(218)
(558,784)

Cash flows from financing activities

Dividends paid
(150,000)
(1,160,932)

Net cash used in financing activities
(150,000)
(1,160,932)

Net increase in cash and cash equivalents
1,955,534
1,870,442

Cash and cash equivalents at beginning of year
6,035,880
4,165,438

Cash and cash equivalents at the end of year
7,991,414
6,035,880


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
7,991,414
6,035,880

7,991,414
6,035,880


The notes on pages 12 to 23 form part of these financial statements.

Page 10

 
FINCORE LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

6,035,880

1,955,534

7,991,414


6,035,880
1,955,534
7,991,414

The notes on pages 12 to 23 form part of these financial statements.

Page 11

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Fincore Limited is a private company limited by shares incorporate in England and Wales. The registered office is Wilsons Corner, 23-25 Wilson Street, London, EC2M 2SN. The company's principal activity is the provision of software services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Amounts invoiced in advance for services are deferred to the period to which they relate.

 
2.3

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of comprehensive income over its useful economic life. 

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
20% straight line
Computer equipment
-
33-50% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on 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 of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 13

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

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 creditiors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

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 period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss 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 profit or loss within 'other operating income'.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 14

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

 
2.14

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss 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.

 
2.15

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.16

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 15

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and
assumptions that affect the amounts reported for assets and liabilities as at  the  balance  sheet date 
and the amounts  reported  for  revenues and  expenses  during  the  year.  However,  the  nature  of 
estimation means that actual  outcomes  could  differ  from  those  estimates. There  are  no  material
judgments, estimates or assumptions used in the preparation of the financial statements.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Software development
20,407,068
18,799,165

20,407,068
18,799,165


2023
2022
£
£

United Kingdom
3,716,870
4,305,700

Rest of Europe
8,388,278
13,271,857

Rest of the world
8,301,920
1,221,608

20,407,068
18,799,165



5.


Other operating income

2023
2022
£
£

Other operating income
564,180
939,703



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
173,633
(206,660)

Other operating lease rentals
141,479
113,219

Page 16

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
13,500
12,850

8.


Employees

2023
2022
£
£

Wages and salaries
3,058,752
2,922,983

Social security costs
381,828
391,108

Cost of defined contribution scheme
119,494
110,173

3,560,074
3,424,264


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
36
37


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
110,626
122,905


During the year retirement benefits were accruing to no directors (2022 - 0) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Other interest receivable
66,486
1,721

Page 17

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation



Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,306,513
2,350,877


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
542,492
448,623

Effects of:


Non-tax deductible amortisation of goodwill and impairment
(320)
(7,150)

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
28,959
41,205

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(578,336)
(480,272)

Deferred tax not recognised
7,205
(2,406)

Total tax charge for the year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2023
2022
£
£


Dividends
150,000
1,160,932

Page 18

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
104,339



At 31 December 2023

104,339



Amortisation


At 1 January 2023
104,339



At 31 December 2023

104,339



Net book value



At 31 December 2023
-



At 31 December 2022
-



Page 19

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets





Fixtures and fittings
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
221,750
1,106,368
1,328,118


Additions
2,208
64,496
66,704


Disposals
-
(570)
(570)



At 31 December 2023

223,958
1,170,294
1,394,252



Depreciation


At 1 January 2023
218,630
976,622
1,195,252


Charge for the year on owned assets
4,612
95,055
99,667



At 31 December 2023

223,242
1,071,677
1,294,919



Net book value



At 31 December 2023
716
98,617
99,333



At 31 December 2022
3,120
129,746
132,866


15.


Fixed asset investments





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 January 2023
82
422,483
422,565


Foreign exchange movement
-
(21,463)
(21,463)



At 31 December 2023
82
401,020
401,102




Page 20

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Finworks Limited
Dormant
Ordinary
100%
Fingaming Technologies Limited
Dormant
Ordinary
100%
Bildabet Technology Limited
Dormant
Ordinary
80%
Finworks Aps
Dormant
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Finworks Limited
1
1

Fingaming Technologies Limited
-
-

Bildabet Technology Limited
-
-

Finworks Aps
-
-


16.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
-
78,329


2023
2022
£
£

Due within one year

Trade debtors
816,233
920,686

Other debtors
690,053
312,948

Prepayments and accrued income
505,635
242,995

Tax recoverable
1,503,882
939,703

3,515,803
2,416,332


Page 21

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
7,991,414
6,035,880





18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
577,208
461,870

Other taxation and social security
227,713
231,613

Other creditors
16,264
27,045

Accruals and deferred income
1,691,219
983,342

2,512,404
1,703,870



19.


Provisions





Other provision

£





At 1 January 2023
43,367


Utilised in year
(43,367)



At 31 December 2023
-

Provisions relates to anticipated dilapidations costs  incurred on 47 Mark Lane, London at the end of the lease term. At the end of the Lease term the provision was utilised to pay for costs incurred and the balance shown in the profit and loss. No dilapidations provision is deemed necessary on the new lease as per the contract terms.


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



33,937 (2022 - 29,770) Ordinary shares of £0.0001 each
3
3
29,652 (2022 - 29,652) Ordinary A shares of £0.0001 each
3
3
588 (2022 - 588) Ordinary B shares of £0.0001 each
-
-

6

6


Page 22

 
FINCORE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Reserves

Share premium account

The share premium account includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Profit and loss account

The profit and loss reserve represents cumulative profit or losses net of dividends paid and other
adjustments.


22.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £119,494 (2022: £110,173).


23.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
158,700
96,000

Later than 1 year and not later than 5 years
634,800
-

793,500
96,000


24.


Related party transactions

During the year, Fincore Limited incurred charges totalling £9,501,449 (2022: £7,721,735) and made sales totalling £4,969,569 (2022: £4,061,358) from/to companies under common control.
At the year end, Fincore Limited was owed £483,479 (2022: £2,734) and owed £Nil (2022: £Nil) from/to companies under common control. 


25.


Controlling party

The directors do not consider there to be an ultimate controlling party.


Page 23