Company registration number 11313622 (England and Wales)
BCB PAYMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
BCB PAYMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
BCB PAYMENTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
4
4,227,646
4,008,543
Cash at bank and in hand
5
177,826,686
2,252,022
182,054,332
6,260,565
Creditors: amounts falling due within one year
6
(178,543,442)
(3,591,168)
Net current assets
3,510,890
2,669,397
Capital and reserves
Called up share capital
7
1,500,000
1,500,000
Profit and loss reserves
2,010,890
1,169,397
Total equity
3,510,890
2,669,397

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

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

The financial statements were approved by the board of directors and authorised for issue on 1 October 2024 and are signed on its behalf by:
Mr O Tonkin
Director
Company registration number 11313622 (England and Wales)
BCB PAYMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1,500,000
654,291
2,154,291
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
515,106
515,106
Balance at 31 December 2022
1,500,000
1,169,397
2,669,397
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
841,493
841,493
Balance at 31 December 2023
1,500,000
2,010,890
3,510,890
BCB PAYMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

BCB Payments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Merchant Square, London, W2 1AS.

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 financial statements are prepared on a going concern basis as the directors are satisfiedtrue that the company has the resources to continue in business for the foreseeable future (which has been taken as 12 months from the date of approval of these financial statements).

 

In making this assessment the directors have considered a wide range of information relating to present and future market conditions, revenue and profitability forecasts and cash flow projections. These projections reflect the current balance sheet, the group's funding plans, regulatory capital requirements and capital commitments.

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business. The fair value of consideration considers trade discounts, settlement discounts and volume rebates, and is net of any VAT or other sales related taxes. It is recognised when the specific criteria have been met for each of the following as described below:

 

Set-up fees

Revenue is recognised upon provisioning client accounts in line with signed contract agreements.

 

Subscription and minimum fees

Revenue is recognised on a monthly basis from customers with active accounts in line with signed contract agreements.

 

Transaction and related fees

Revenue is earned on transactions undertaken for clients and related services and recognised on a monthly basis in arrears.

 

Balance fees

Revenue is earned on certain client balances; this is recognised on a monthly basis in arrears.

BCB PAYMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include on-demand deposits at banks, money market funds (MMFs), other short-term liquid investments with original maturities of three months or less and e-money held with payment service providers. Due to the short duration of the cash and cash equivalents (less than 3 months), the fair value approximates the carrying value at each reporting period.

 

The company recognises financial assets and liabilities for funds clients hold in BCB payments accounts that are safeguarded at banking partners with whom we have a contractual right to earn credit interest. The liability is recognised upon receipt of cash and is derecognised when cash is paid to a beneficiary.

 

Interest income on client funds is earned from holding these funds as cash and cash equivalents or investing them into liquid permitted financial assets. These amounts are recognised in the income statement using the effective interest rate method.

 

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. 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 and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

1.7
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

BCB PAYMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.8
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.

BCB PAYMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions that affect the amounts reported in the balance sheet and income statement. However, the nature of estimation means that actual outcomes could differ from these estimates. The critical accounting judgements, estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

Critical judgements

The following critical judgements and estimates had a significant effect on the amounts recognised in the financial statements:

 

Going Concern

As stated in note 1.2, the financial statements are prepared on a going concern basis. In making this assessment the directors have considered a wide range of information relating to the future. The group operates in fast moving digital assets markets that, during 2022, experienced adverse market and regulatory sentiment. As a series A business, the group’s success is dependent on revenue growth that is difficult to forecast with certainty, particularly in turbulent market conditions. In addition, the group and the digital assets markets have a limited track record on which to base such forecasts. Accordingly, while the decision to adopt the going concern basis is founded on realistic forecasts, these forecasts are subject to significant uncertainty and actual performance is likely to be different.

Safeguarded client funds

During the financial year, the company agreed with its banking partners for certain cash balances to accrue credit interest. As a result, these assets meet the recognition criteria under FRS 102, namely that of future economic benefits flowing to the entity and reliable measurement. However, these assets are solely held on clients’ behalf and are segregated in compliance with the FCA safeguarding regulations; they are not beneficially owned by the company.

 

Nonetheless, the directors concluded that since holding safeguarded client funds is core to the company’s business model and that interest income was earned on these assets and reporting in the profit and loss account during the financial year, their omission would not accurately reflect the company’s operations.

 

Accordingly, for the financial year, safeguarded client funds with the contractual right to credit interest, are included in cash and cash equivalents (note 5) with a corresponding liability shown in creditors falling due within one year (note 6). Credit interest earned is included in revenue as it is a primary source of income directly related to the company’s business model.

 

3
Employees

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

2023
2022
Number
Number
Total
2
2
BCB PAYMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
860,905
603,511
Amounts owed by group undertakings
3,166,194
3,403,979
Other debtors
22,578
-
0
Prepayments and accrued income
177,969
1,053
4,227,646
4,008,543
5
Cash and Cash Equivalents

Cash at bank and in hand was of £177,826,686 (2022: £2,256,079) at the year end, of which £176,120,488 related to safeguarded client funds. These funds are fully segregated from BCB ’s own funds in safeguarding bank accounts and term deposits at high quality banking institutions and approved money market funds (MMFs) in compliance with the FCA safeguarding regulations. No safeguarded client funds were shown at the prior year end as none were contractually eligible for credit interest during the prior year.

 

6
Creditors: amounts falling due within one year
2023
2022
£
£
Safeguarded client funds
176,120,488
-
Trade creditors
16,313
75,028
Amounts owed to group undertakings and undertakings in which the company has a participating interest
1,156,518
2,454,455
Corporation tax
14,741
-
0
Other taxation and social security
71,249
71,249
Other creditors
1,164,133
990,436
178,543,442
3,591,168

Safeguarded clients funds are included in cash on the balance sheet in accordance with the accounting policy and key judgements note.

7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
150,000,000
150,000,000
1,500,000
1,500,000
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

BCB PAYMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Audit report information
(Continued)
- 8 -
Senior Statutory Auditor:
Daniel Rose
Statutory Auditor:
Gravita Audit II Limited
Date of audit report:
1 October 2024
9
Parent company

The parent company of the company is BCB Group Holdings Limited, incorporated in England and Wales (Company number 11312470). Its registered office address is 5 Merchant Square, London, England, W2 1AS.

2023-12-312023-01-01false01 October 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityThis audit opinion is unqualifiedMr O  Von Landsberg-SadieMr O  TonkinN  Powellfalsefalse113136222023-01-012023-12-31113136222023-12-31113136222022-12-3111313622core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3111313622core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3111313622core:ShareCapital2023-12-3111313622core:ShareCapital2022-12-3111313622core:RetainedEarningsAccumulatedLosses2023-12-3111313622core:RetainedEarningsAccumulatedLosses2022-12-3111313622core:ShareCapital2021-12-3111313622core:RetainedEarningsAccumulatedLosses2021-12-3111313622bus:Director22023-01-012023-12-3111313622core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31113136222022-01-012022-12-3111313622core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3111313622core:CurrentFinancialInstruments2023-12-3111313622core:CurrentFinancialInstruments2022-12-3111313622bus:PrivateLimitedCompanyLtd2023-01-012023-12-3111313622bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3111313622bus:FRS1022023-01-012023-12-3111313622bus:Audited2023-01-012023-12-3111313622bus:Director12023-01-012023-12-3111313622bus:Director32023-01-012023-12-3111313622bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP