Company registration number 09690364 (England and Wales)
STARTUP GIANTS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STARTUP GIANTS PLC
COMPANY INFORMATION
Directors
J Buckler
F Betito
S Tuson
Secretary
Clarkson Hyde Company Secretaries Limited
Company number
09690364
Registered office
71-75 Shelton Street
Covent Garden
London
WC2H 9JQ
Accountants
Jacksons Chartered Accountants
First Floor
Albion House
Albion Street
Hull
HU1 3TE
STARTUP GIANTS PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
STARTUP GIANTS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

 

Startup Giants undertook consultancy work for and provided support services to early-stage entrepreneurs, generating revenue of £127,403 (2022: £320,957). The reduced revenue in comparison with 2022 was a result of changes to the Home Office rules for endorsing bodies and the subsequent reduction in visa applicants joining one the Company’s programmes, as described below. There was also a corresponding reduction in administrative expenses to £216,017 (2022: £456,368) and a gain in the value of the company's investments of £366,230. The Company recorded a net profit of £277,457 (2022: loss of £136,514) translating into a profit per share of 22.23 pence (2021: loss of 10.94 pence per share). At the end of the year, net assets had increased to £833,591 (2022: £556,134).

 

Significant Features of Financial 2023

 

The Company’s focus for the first half of 2023 continued with supporting founders already in the Company’s portfolio to target their early stage investment rounds with private investors and funds within the Company’s network, as well as the selection and support of global opportunities and talent from visa applicants seeking to bring their innovation to the United Kingdom to further expand their portfolio of founders.

 

In April 2023, the Home Office changed their approach to endorsing foreign visa applicants on the Startup Route and Innovator Route and subsequently, at the same time as applying the new rules, reduced the number of endorsing bodies authorised to qualify and issue endorsements from 68 to 3 (plus 1 government department). Under the new rules, Startup Giants is still authorised by the Home Office as a Legacy Endorsing Body to maintain and monitor its existing portfolio of visa applicants but is unable to further extend its portfolio with new visa applicants via the Innovator and Startup Routes.

 

Startup Giants’ focus subsequently during 2023 has been to support its portfolio of founders to target further investment rounds and showcase their investment opportunity to their venture syndicate partners, and has seen a number of their founders successfully complete investment rounds in the current period.

 

During the second half of the year, the Company, after careful deliberation, concluded that changing the Company’s investment strategy could result in the emergence of a number of opportunities to make attractive investments. The Directors believe that moving away from being a generalist Investment Vehicle to having a focus predominantly on start-ups in the New Energy sector that are at the scale-up stage of growth, as well as taking larger equity positions in a smaller portfolio where their customer base is largely closely related, would be beneficial. In addition, the Company may obtain the right to license the technology and enter into joint venture projects with its portfolio companies either directly with end-customers or via the creation of a SPV (special purpose vehicle), and may obtain equity in exchange of value provided in lieu of direct investment or via the use of share swaps. These investments may be in combination with additional debt or equity-related financing, and in appropriate circumstances in collaboration with other value added financial and/or strategic investors.

 

Current Trading and Post-Balance Sheet Events

 

Trading during the current financial year hitherto has been in line with the Directors’ expectations at the beginning of the period. The Company has during the current year to date continued its core focus to support its portfolio of founders with innovative concepts, where the Company receives either straight equity or a warrant on shares for longer-term asset appreciation, as well as building on initiatives previously mentioned in the areas of New Energy and related technologies.

 

Under the Aquis stock exchange rules, the Company was unable to enter into new commercial agreements that constituted a change in investment strategy unless its shares were withdrawn from the Aquis Growth Market, whilst retaining the ability to apply for readmission at some point in the future with a revised admission document.

 

Accordingly, the Company took the steps required to seek approval from its shareholders to adopt the new investment strategy and withdrawal of the Company’s shares from admission to trading on the AQSE Growth Market, with a notice for a General Meeting distributed in May 2024 and subsequent unanimous approval of the resolutions and withdrawal from the AQSE Growth Market completed by the end of June 2024.

 

STARTUP GIANTS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Outlook

 

Looking ahead, the Company intends to deliver shareholder returns principally through capital growth rather than capital distribution through dividends. Consistent with the Company’s proposed new Investment strategy, the Directors are aware of a number of potential acquisition and/or investment opportunities which may be available to the Company. Terms have been concluded with one such potential opportunity, and others would be subject to due diligence, final board approval and future fundraises.

 

Key Performance Indicators

 

The Directors do not consider there to be any relevant key performance indicators other than turnover and profit/loss for the year at this stage of the development of the business.

Principal risks and uncertainties

The company operates in the early-stage technology investment sector, which inherently carries a higher level of risk due to the nascent nature of the businesses it supports. Key risks include market volatility, which can impact the valuations and growth trajectories of portfolio companies, and the possibility of technological obsolescence or failure, given the rapid pace of innovation. Additionally, economic downturns, changes in regulatory environments, or geopolitical tensions may negatively affect both the availability of capital and the scalability of investments. The company mitigates these risks through careful due diligence, a diversified portfolio approach, and active monitoring of industry trends and market conditions.

Promoting the success of the company

The Directors, in accordance with s. 172, seek to promote  the long term success of  the Company and consider the  interests of  all  stakeholders, by regular  Director meetings  and communication, coupled with the substantial experience of the Board members and their varied skills.

On behalf of the Board

J Buckler
Director
30 September 2024
STARTUP GIANTS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

Startup Giants plc is a UK-based start-up accelerator that invests in and mentors internet technology start-up businesses in the UK and internationally.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Buckler
F Betito
S Tuson
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

Trade creditors of the company at the year end were equivalent to 30 days' purchases, based on the average daily amount invoiced by suppliers during the year.

Auditor

In accordance with the company's articles, a resolution proposing that Jacksons Chartered Accountants be reappointed as auditor of the company will be put at the Annual General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
J Buckler
Director
30 September 2024
STARTUP GIANTS PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

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.

STARTUP GIANTS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STARTUP GIANTS PLC
- 5 -
Opinion

We have audited the financial statements of Startup Giants plc for the year ended 31 December 2023 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

In our opinion the financial statements:        

    

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 2006. Our 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.

Basis of 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 UK, including the FRC’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.        

Key matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Accounting estimates

We have considered the basis of the accounting estimates applied when preparing the financial statements and considered the responses to audit questions with professional scepticism.

Related parties

We have assessed the Company’s procedures for identifying related parties and ensuring the completeness of the disclosures that are included in the financial statements.

Management override of controls

We have considered the controls in place, remained alert for material and unusual items and tested a sample of transactions to assess the risk of management override of controls.

STARTUP GIANTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STARTUP GIANTS PLC
- 6 -

Our application of materiality

Materiality for the financial statements as a whole was set at £30,865. This has been calculated at 3% of the benchmark of total assets, which we have determined, in our professional judgement, to be one the principal benchmarks with the financial statements relevant to members of the Company in assessing the financial position and performance.

We report to the Directors all corrected and uncorrected misstatements we identified through our audit with a value in excess of £3,000 in addition to other audit misstatements below that threshold that we believed warranted reporting on qualitative grounds.

An overview of the scope of our audit

Our audit is risk based and is designed to focus our efforts on the areas of greatest risk of material misstatement, aspects subject to significant management judgement as well as greatest complexity, risk and size.

We consider management override and related parties to be qualitatively material. Although it is not the responsibility of the auditor to discover fraud, clearly any instances of fraud which we detect are material to the users of the financial statements. We have tested journal entries as part of our audit procedures to address this fraud risk. For Related Parties, we have inquired with the client and also assessed the Company’s procedures regarding related parties.

Material uncertainty related 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.

 

We draw attention to note 1.2 in the accounting policies section of the financial statements which indicates that the Company relies upon the successful implementation of its new business strategy and requires the support of directors’ loans to meet its current liabilities.. As stated in note 1.2, these conditions indicate that a material uncertainty exists that may cast doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

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 report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. Our 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

STARTUP GIANTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STARTUP GIANTS PLC
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:                

STARTUP GIANTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STARTUP GIANTS PLC
- 8 -

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 2006. Our 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.

Mark Jackson BA FCA (Senior Statutory Auditor)
For and on behalf of Jacksons Chartered Accountants
1 October 2024
Chartered Accountants
Statutory Auditor
First Floor
Albion House
Albion Street
Hull
HU1 3TE
STARTUP GIANTS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Revenue
2
127,403
320,957
Gross profit
127,403
320,957
Administrative expenses
(216,107)
(456,368)
Operating loss
3
(88,704)
(135,411)
Investment revenues
7
300
242
Finance costs
8
(369)
(1,345)
Other gains and losses
9
366,230
-
0
Profit/(loss) before taxation
277,457
(136,514)
Income tax expense
10
-
-
Profit/(loss) and total comprehensive income for the year
277,457
(136,514)
Earnings per share (in pence)
11
Basic
22.23
(10.94)
Diluted
22.23
(10.94)
Earnings per share from continuing operations (in pence)
Basic
22.23
(10.94)
Diluted
22.23
(10.94)

The income statement has been prepared on the basis that all operations are continuing operations.

STARTUP GIANTS PLC
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
Non-current assets
Goodwill
12
7,084
12,084
Intangible assets
12
140,000
-
0
Property, plant and equipment
13
522
1,445
Investments
14
826,580
-
0
974,186
13,529
Current assets
Trade and other receivables
15
40,230
31,859
Current tax recoverable
82
3,939
Cash and cash equivalents
14,343
712,389
54,655
748,187
Current liabilities
Trade and other payables
18
177,439
182,219
Current tax liabilities
5,728
6,280
Borrowings
17
5,000
5,000
188,167
193,499
Net current (liabilities)/assets
(133,512)
554,688
Non-current liabilities
Borrowings
17
7,083
12,083
Net assets
833,591
556,134
Equity
Called up share capital
19
152,405
152,405
Share premium account
20
960,102
960,102
Retained earnings
(278,916)
(556,373)
Total equity
833,591
556,134
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
J Buckler
Director
Company registration number 09690364 (England and Wales)
STARTUP GIANTS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 January 2022
152,405
960,102
(419,859)
692,648
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(136,514)
(136,514)
Balance at 31 December 2022
152,405
960,102
(556,373)
556,134
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
277,457
277,457
Balance at 31 December 2023
152,405
960,102
(278,916)
833,591
STARTUP GIANTS PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(108,290)
(380,755)
Interest paid
(369)
(1,345)
Income taxes refunded
3,305
850
Net cash outflow from operating activities
(105,354)
(381,250)
Investing activities
Purchase of intangible assets
(140,000)
-
0
Purchase of property, plant and equipment
-
0
(199)
Repayment of loans
12,358
(242)
Purchase of investments
(460,350)
-
0
Interest received
300
242
Net cash used in investing activities
(587,692)
(199)
Financing activities
Repayment of bank loans
(5,000)
(5,000)
Net cash used in financing activities
(5,000)
(5,000)
Net decrease in cash and cash equivalents
(698,046)
(386,449)
Cash and cash equivalents at beginning of year
712,389
1,098,838
Cash and cash equivalents at end of year
14,343
712,389
STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Startup Giants Plc is a public company limited by shares incorporated in England and Wales. The registered office is 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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’s forecasts for the going concern period, being 12 months following the signing of the 2023 financial statements show that the company has sufficient access to liquidity to meet its needs of that period. The company is in a negative cash position at certain times during the forecast period and relies upon the support of directors’ loans to meet its current liabilities.true

 

The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources, with the continued and further support of the director, to continue in operational existence for the foreseeable future and so directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

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 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 are recoverable.

1.4
Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is subject to an annual review for impairment.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less 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.

 

Intangible assets are subject to an annual impairment review.

1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

IT and office equipment
straight line over three years

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 recognised in the income statement.

1.7
Non-current 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.

1.8
Impairment of tangible and intangible assets

At each reporting 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.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

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.

 

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.

STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.9
Cash and cash equivalents

Cash and cash equivalents 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.

1.10
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Trade Receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.11
Financial liabilities

Basic financial liabilities, including trade and other payables, 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.

 

Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.13
Taxation

The income 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.

 

A provision is recognised for those matters for which the tax determination is uncertain but it is considered probable that there will a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

 

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 based on tax laws and rates that have been enacted or substantively enacted at the reporting date.

1.14
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 inventories or non-current 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.

1.15
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.

2
Revenue
2023
2022
£
£
Revenue analysed by class of business
Fees from principal activity
127,403
320,957
STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
9
3,083
Depreciation of property, plant and equipment
923
901
Impairment of intangible assets (included within administrative expenses)
5,000
5,000
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
4,000
4,000
5
Employees

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

2023
2022
Number
Number
Director
1
1

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
72,800
72,800
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
72,800
72,800
7
Investment income
2023
2022
£
£
Interest income
Financial instruments measured at amortised cost:
Other interest income on financial assets
300
242
Income above relates to assets held at amortised cost, unless stated otherwise.
STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
8
Finance costs
2023
2022
£
£
Interest on bank overdrafts and loans
369
495
Other interest payable
-
0
850
Total interest expense
369
1,345
9
Other gains and losses
2023
2022
£
£
Change in value of financial assets at fair value through profit or loss
366,230
-

Other gains and losses represent fair value adjustment of the company's investments.

STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Income tax expense
2023
2022
£
£

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

2023
2022
£
£
Profit/(loss) before taxation
277,457
(136,514)
Expected tax charge/(credit) based on a corporation tax rate of 25.00% (2022: 19.00%)
69,364
(25,938)
Effect of expenses not deductible in determining taxable profit
1,113
143
Unutilised tax losses carried forward
19,599
24,967
Permanent capital allowances in excess of depreciation
231
(122)
Amortisation on assets not qualifying for tax allowances
1,250
950
Change in fair value of investments
(91,557)
-
0
Taxation charge for the year
-
-
11
Earnings per share
2023
2022
£
£
Number of shares
Weighted average number of ordinary shares for basic earnings per share
1,248,091
1,248,091
Earnings
Continuing operations
Profit/loss for the period from continued operations
277,457
(136,514)
Earnings for basic and diluted earnings per share being net profit attributable to equity shareholders of the company for continued operations
277,457
(136,514)
Earnings per share for continuing operations
Basic and diluted earnings per share
22.23
(10.94)
Basic and diluted earnings per share
From continuing operations
22.23
(10.94)
22.23
(10.94)
STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Intangible assets
Goodwill
Intellectual property
Total
£
£
£
Cost
At 1 January 2022
50,000
-
0
50,000
At 31 December 2022
50,000
-
0
50,000
Additions - purchased
-
0
140,000
140,000
At 31 December 2023
50,000
140,000
190,000
Impairment
At 1 January 2022
32,916
-
32,916
Charge for the year
5,000
-
5,000
At 31 December 2022
37,916
-
37,916
Charge for the year
5,000
-
5,000
At 31 December 2023
42,916
-
42,916
Carrying amount
At 31 December 2023
7,084
140,000
147,084
At 31 December 2022
12,084
-
12,084
At 31 December 2021
17,084
-
17,084
13
Property, plant and equipment
IT and office equipment
£
Cost
At 1 January 2022
2,573
Additions
199
At 31 December 2022
2,772
At 31 December 2023
2,772
Accumulated depreciation and impairment
At 1 January 2022
426
Charge for the year
901
At 31 December 2022
1,327
Charge for the year
923
At 31 December 2023
2,250
STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Property, plant and equipment
IT and office equipment
£
(Continued)
- 21 -
Carrying amount
At 31 December 2023
522
At 31 December 2022
1,445
14
Investments
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Investments held at fair value through profit or loss
-
0
-
0
826,580
-
0

The company has not designated any financial assets that are not classified as held for trading as financial assets at fair value through profit or loss.

Movements in non-current investments
Investments
£
Cost or valuation
At 1 January 2023
-
Additions
460,350
Valuation changes
366,230
At 31 December 2023
826,580
Carrying amount
At 31 December 2023
826,580
At 31 December 2022
-
STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Trade and other receivables
2023
2022
£
£
Trade receivables
48,750
36,090
Provision for bad and doubtful debts
(24,000)
(19,000)
24,750
17,090
Other receivables
15,300
12,358
Prepayments
180
2,411
40,230
31,859

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

16
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

Movement in the allowances for impairment of trade receivables
2023
2022
£
£
Balance at 1 January 2023 and at 31 December 2023
24,000
19,000
17
Borrowings
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Borrowings held at amortised cost:
Bank loans
5,000
5,000
7,083
12,083
5,000
5,000
7,083
12,083
18
Trade and other payables
2023
2022
£
£
Trade payables
35,305
43,672
Accruals
122,328
99,811
Social security and other taxation
3,156
22,086
Other payables
16,650
16,650
177,439
182,219
STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 5p each
1,248,091
1,248,091
62,405
62,405
Deferred shares of 45p each
200,000
200,000
90,000
90,000
1,448,091
1,448,091
152,405
152,405

Deferred shares carry no voting rights or rights to dividends.

20
Share premium account
2023
2022
£
£
At the beginning and end of the year
960,102
960,102
21
Capital risk management

The company is not subject to any externally imposed capital requirements.

22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

2023
2022
£
£
Short-term employee benefits
72,800
72,800

A proportion of the remuneration of key management personnel is accrued but not paid as at the end of the year. Total accrued remuneration at 31 December 2023 is £87,967 (2022: £87,967).

Other information

At the end of the year, the company owed £10,000 (31 December 2022: £10,000) to Pointsman Limited, a company controlled by J Buckler.

 

During the financial year the company paid £12,500 (2022: £14,292) to rent residential premises that are used by J Buckler when he is working in the UK.

 

During the year the company purchased Intellectual Property for £140,000 from a company that is controlled by Jeb Buckler.

 

As at 31 December 2023, J Buckler owed £12,300 (31 December 2022: £12,358) to the company. During the year, interest of £300 (2022: £242) was charged to J Buckler in respect of this loan.

 

 

STARTUP GIANTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
23
Controlling party

The ultimate controlling party is Jeb Buckler

24
Cash absorbed by operations
2023
2022
£
£
Profit/(loss) for the year before income tax
277,457
(136,514)
Adjustments for:
Finance costs
369
1,345
Investment income
(300)
(242)
Amortisation and impairment of intangible assets
5,000
5,000
Depreciation and impairment of property, plant and equipment
923
901
Other gains and losses
(366,230)
-
Movements in working capital:
(Increase)/decrease in trade and other receivables
(20,729)
65,505
Decrease in trade and other payables
(4,780)
(316,750)
Cash absorbed by operations
(108,290)
(380,755)
25
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
712,389
(698,046)
14,343
Borrowings excluding overdrafts
(17,083)
5,000
(12,083)
695,306
(693,046)
2,260
1 January 2022
Cash flows
31 December 2022
Prior year:
£
£
£
Cash at bank and in hand
1,098,838
(386,449)
712,389
Borrowings excluding overdrafts
(22,083)
5,000
(17,083)
1,076,755
(381,449)
695,306
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