Company registration number 10128297 (England and Wales)
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
COMPANY INFORMATION
Directors
J Davies
J Dobbin
(Appointed 19 July 2023)
Company number
10128297
Registered office
John Stow House
18 Bevis Marks
London
England
EC3A7JB
Auditor
M J Bushell Audit LLP
8 High Street
Brentwood
Essex
CM14 4AB
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company and group continued to be the provision of services to deliver better outcomes for lenders and borrowers through use of data and AI. We achieve this via an SME lending platform – Connecting lenders and borrowers, using our direct and white-label platform.

 

Spark Finance Limited is an FCA regulated credit broker

Results and dividends

The Spark group has continued on our journey to create change in SME lending through innovation. Our results for the year reflect the continued investment in our proposition, with a net loss after R&D credits of approximately £1.4m for the group, which includes a net loss of £124k for Spark Finance Ltd.

 

This will be our peak loss position as we move towards monthly breakeven in FY25. Revenue significantly increased to £1m for the group in the year to March 2024, including £759k for Spark Finance Ltd, and the first four months FY25 have seen a further uplift of 117%.

 

We have a driven management team who are focused on achieving our goals.

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 Davies
J Dobbin
(Appointed 19 July 2023)
Future developments

We have seen record KPI’s in almost every measure since 31 March 2024, including the number of opportunities created by our white label partners, revenue for every channel and lender user engagement.

Auditor

M J Bushell Audit LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a 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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
On behalf of the board
J Davies
J Dobbin
Director
Director
27 September 2024
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
- 4 -
Opinion

We have audited the financial statements of Spark Finance Ltd (Formerly JD Capital Finance Limited) (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

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 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.

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 report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED) (CONTINUED)
- 5 -
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 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED) (CONTINUED)
- 6 -

Based on our understanding of the group and the industry, we identified that there were no specific laws or regulations that were critical to the operation of the business. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principle risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure, and management bias in accounting estimates.

 

Audit procedures performed by the engagement team 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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Corné von Wielligh ACA
Senior Statutory Auditor
For and on behalf of M J Bushell Audit LLP
30 September 2024
Chartered Accountants
Statutory Auditor
8 High Street
Brentwood
Essex
CM14 4AB
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Year
Period
ended
ended
31 March
31 March
2024
2023
Notes
£
£
Turnover
3
758,717
449,271
Cost of sales
(128,557)
(1,215)
Gross profit
630,160
448,056
Administrative expenses
(753,583)
(334,929)
Operating (loss)/profit
4
(123,423)
113,127
Interest receivable and similar income
8
39
577
Interest payable and similar expenses
9
(563)
(613)
(Loss)/profit before taxation
(123,947)
113,091
Tax on (loss)/profit
10
-
0
(28,510)
(Loss)/profit for the financial year
(123,947)
84,581

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Year
Period
ended
ended
2024
2023
£
£
(Loss)/profit for the year
(123,947)
84,581
Other comprehensive income
-
-
Total comprehensive income for the year
(123,947)
84,581
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
12
83,638
57,168
Cash at bank and in hand
22,603
55,480
106,241
112,648
Creditors: amounts falling due within one year
13
(121,698)
(64,160)
Net current (liabilities)/assets
(15,457)
48,488
Creditors: amounts falling due after more than one year
14
(90,686)
(30,684)
Net (liabilities)/assets
(106,143)
17,804
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
(106,243)
17,704
Total equity
(106,143)
17,804
The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
J Davies
J Dobbin
Director
Director
Company registration number 10128297 (England and Wales)
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
1
37,973
37,974
Period ended 31 March 2023:
Profit and total comprehensive income
-
84,581
84,581
Issue of share capital
17
99
-
99
Dividends
11
-
(104,850)
(104,850)
Balance at 31 March 2023
100
17,704
17,804
Year ended 31 March 2024:
Loss and total comprehensive income
-
(123,947)
(123,947)
Balance at 31 March 2024
100
(106,243)
(106,143)
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
19
(108,312)
93,712
Interest paid
(563)
(613)
Income taxes paid
(23,449)
(13,471)
Net cash (outflow)/inflow from operating activities
(132,324)
79,628
Investing activities
Proceeds from disposal of tangible fixed assets
-
0
(1,144)
Repayment of loans
39,408
36,922
Interest received
39
577
Net cash generated from investing activities
39,447
36,355
Financing activities
Proceeds from issue of shares
-
0
99
Proceeds from borrowings
75,970
13,350
Repayment of borrowings
(7,968)
-
0
Repayment of bank loans
(8,000)
(7,333)
Dividends paid
-
0
(104,850)
Net cash generated from/(used in) financing activities
60,002
(98,734)
Net (decrease)/increase in cash and cash equivalents
(32,875)
17,249
Cash and cash equivalents at beginning of year
55,478
38,229
Cash and cash equivalents at end of year
22,603
55,478
Relating to:
Cash at bank and in hand
22,603
55,480
Bank overdrafts included in creditors payable within one year
-
0
(2)
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Spark Finance Ltd (Formerly JD Capital Finance Limited) is a private company limited by shares incorporated in England and Wales. The registered office is John Stow House, 18 Bevis Marks, London, England, EC3A7JB.

1.1
Reporting period

The financial statements were presented for a period shorter than one year in the prior period to align with that of the parent company. Therefore, comparative amounts are not entirely comparable.

1.2
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.

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 £1

The financial statements have been prepared under the historical cost convention The principal accounting policies adopted are set out below.

1.3
Going concern

The Director has prepared the financial statements on a going concern basis even though the account show net liabilities of £106,143. true

 

The parent company Spark Finance Group PLC has secured £3,172,250 of shareholder equity funding to 31 March 2024. This funding is expected to be sufficient to enable the group and this company to continue to trade for the foreseeable future.

 

The Director has prepared forecasts and considered a variety of different scenarios. In preparing these scenarios, the Director has considered the current level of leads, conversion rates and actual results to date. In all scenarios the Director believes that the company has sufficient resources to be able to meet its liabilities as they fall due and have therefore concluded that the going concern basis of accounting is appropriate.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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, mainly in relation to contractual hourly staff rates and materials, 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 it is probable will be recovered.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

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

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.

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.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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 about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Commission
743,021
449,271
Global Payments
15,696
-
758,717
449,271
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
758,717
449,271
2024
2023
£
£
Other revenue
Interest income
39
577
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
-
581
(Profit)/loss on disposal of tangible fixed assets
-
2,162
Operating lease charges
5,108
35,726
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
4,500
-
0
For other services
All other non-audit services
2,100
-
0
6
Employees

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

2024
2023
Number
Number
12
6
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
629,479
163,123
Social security costs
67,851
20,366
Pension costs
5,984
-
0
703,314
183,489
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
160,750
11,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
39
182
Other interest income
-
0
395
Total income
39
577
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
39
182
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
563
613
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
23,448
Adjustments in respect of prior periods
-
0
5,362
Total current tax
-
0
28,810
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
-
0
(300)
Total tax charge
-
0
28,510

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(123,947)
113,091
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(23,550)
21,487
Tax effect of expenses that are not deductible in determining taxable profit
1,596
1,962
Unutilised tax losses carried forward
21,954
-
0
Adjustments in respect of prior years
-
0
5,361
Deferred tax adjustments in respect of prior years
-
0
(300)
Taxation charge for the year
-
28,510
11
Dividends
2024
2023
£
£
Interim paid
-
0
104,850
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
54,850
682
Other debtors
382
44,898
Prepayments and accrued income
28,406
11,588
83,638
57,168
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
8,000
8,002
Trade creditors
49,443
-
0
Corporation tax
-
0
23,449
Other taxation and social security
22,139
1,587
Accruals and deferred income
42,116
31,122
121,698
64,160
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
9,334
17,334
Other borrowings
15
81,352
13,350
90,686
30,684
15
Loans and overdrafts
2024
2023
£
£
Bank loans
17,334
25,334
Bank overdrafts
-
0
2
Loans from group undertakings
81,352
13,350
98,686
38,686
Payable within one year
8,000
8,002
Payable after one year
90,686
30,684
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,984
-

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
70
70
70
70
Ordinary "A" of £1 each
30
30
30
30
100
100
100
100
18
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2024
2023
£
£
Clover Technology Ltd
-
4,500

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
81,352
13,350
19
Cash (absorbed by)/generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(123,947)
84,581
Adjustments for:
Taxation charged
-
0
28,510
Finance costs
563
613
Investment income
(39)
(577)
(Gain)/loss on disposal of tangible fixed assets
-
2,162
Depreciation and impairment of tangible fixed assets
-
0
581
Movements in working capital:
Increase in debtors
(65,878)
(10,087)
Increase/(decrease) in creditors
80,989
(12,071)
Cash (absorbed by)/generated from operations
(108,312)
93,712
SPARK FINANCE LTD (FORMERLY JD CAPITAL FINANCE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
20
Analysis of changes in net funds/(debt)
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
55,480
(32,877)
22,603
Bank overdrafts
(2)
2
-
0
55,478
(32,875)
22,603
Borrowings excluding overdrafts
(38,684)
(60,002)
(98,686)
16,794
(92,877)
(76,083)
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