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Registered number: 09988752










SPARK IMPACT HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
SPARK IMPACT HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
M Borzomato 
M F D'Abbadie 




Registered number
09988752



Registered office
Suite 6c, The Plaza
100 Old Hall Street

Liverpool

England

L3 9QJ




Independent auditor
Langtons Professional Services Limited
Chartered Accountants & Statutory Auditor

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ





 
SPARK IMPACT HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditor's Report
 
4 - 8
Consolidated Statement of Income and Retained Earnings
 
9
Consolidated Balance Sheet
 
10
Company Balance Sheet
 
11
Consolidated Statement of Changes in Equity
 
12 - 13
Company Statement of Changes in Equity
 
14 - 15
Consolidated Statement of Cash Flows
 
16
Consolidated Analysis of Net Debt
 
17
Notes to the Financial Statements
 
18 - 29


 
SPARK IMPACT HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Business review
 
The directors believe that the group has achieved a satisfactory result for the year under review in the light of prevailing trading conditions.
The strategic agreement entered into by SPARK with River Capital continues to work well to the benefit of both parties.
The profit / (loss) for the year, after taxation, amounted to £110,030 (2022: loss of £48,765).
The directors recommended and paid dividends of £NIL (2022: £4,000) during the year.

Principal risks and uncertainties
 
The group’s operations expose it to a variety of financial risks. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of liquidity and the related finance costs. The group does not use derivative financial instruments and as such, no hedge accounting is applied.
Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group’s finance department.

Financial key performance indicators
 
The group monitors its performance on an ongoing basis and produces comprehensive management information which is presented at the board meetings. Key performance indicators are used on an ongoing basis to manage the business and these include the levels of assets under management, recurring income, new business, costs and EBITDA.
Liquidity risk
The group actively monitors liquidity levels to ensure the group has sufficient available funds for operations and planned expansions.

Regulatory risk
 
The majority of the group’s activities are regulated by the Financial Conduct Authority (FCA). The directors are aware of the risks of non-compliance and ensure adequate resource and personnel are in place to maintain a controlled and fully compliant environment.


This report was approved by the board on 9 October 2024 and signed on its behalf.





M F D'Abbadie
Director

Page 1

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The directors who served during the year were:

M Borzomato 
M F D'Abbadie 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Auditor
The auditor, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 2

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

This report was approved by the board on 9 October 2024 and signed on its behalf.
 





M F D'Abbadie
Director

Page 3

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPARK IMPACT HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of SPARK Impact Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Group Statement of Income and Retained Earnings, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent 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.


Page 4

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPARK IMPACT HOLDINGS LIMITED (CONTINUED)


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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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


Page 5

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPARK IMPACT HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPARK IMPACT HOLDINGS LIMITED (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit, in respect to fraud, are:
• to identify and assess the risks of material misstatement of the financial statements due to fraud;
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
• to respond appropriately to fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR).
• We understood how the Group is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.
• Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved:
enquiries of management; and
journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual transactions based on our understanding of the business.
• We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

Page 7

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SPARK IMPACT HOLDINGS LIMITED (CONTINUED)



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


Use of our report
 

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





Eifion Roberts (Senior Statutory Auditor)
  
for and on behalf of
Langtons Professional Services Limited
 
Chartered Accountants
Statutory Auditor
  
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ

9 October 2024
Page 8

 
SPARK IMPACT HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
242,052
99,664

Gross profit
  
242,052
99,664

Administrative expenses
  
(228,543)
(231,064)

Other operating income
  
100,000
100,000

Operating profit/(loss)
  
113,509
(31,400)

Change in market value of investments
  
(212)
(23,143)

Interest receivable and similar income
 7 
2,106
6,285

Profit/(loss) before tax
  
115,403
(48,258)

Tax on profit/(loss)
 8 
(5,373)
(507)

Profit/(loss) after tax
  
110,030
(48,765)

  

  

Retained earnings at the beginning of the year
  
785,389
838,154

  
785,389
838,154

Profit/(loss) for the year attributable to the owners of the parent
  
110,030
(48,765)

Dividends declared and paid
  
-
(4,000)

Retained earnings at the end of the year
  
895,419
785,389

  

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of income and retained earnings.

The notes on pages 18 to 29 form part of these financial statements.

Page 9

 
SPARK IMPACT HOLDINGS LIMITED
REGISTERED NUMBER: 09988752

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 11 
-
179,317

  
-
179,317

Current assets
  

Debtors
 12 
657,962
233,460

Cash at bank and in hand
 13 
255,655
391,519

  
913,617
624,979

Creditors: amounts falling due within one year
 14 
(17,683)
(18,392)

Net current assets
  
 
 
895,934
 
 
606,587

Total assets less current liabilities
  
895,934
785,904

Provisions for liabilities
  

Net assets
  
895,934
785,904


Capital and reserves
  

Called up share capital 
 16 
20
20

Capital redemption reserve
 17 
495
495

Profit and loss account
 17 
895,419
785,389

Equity attributable to owners of the parent Company
  
895,934
785,904


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 October 2024.




M F D'Abbadie
Director

The notes on pages 18 to 29 form part of these financial statements.

Page 10

 
SPARK IMPACT HOLDINGS LIMITED
REGISTERED NUMBER: 09988752

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 11 
515
150,107

  
515
150,107

Current assets
  

Debtors
 12 
749,709
20

  
749,709
20

Creditors: amounts falling due within one year
 14 
(515)
(150,107)

Net current assets/(liabilities)
  
 
 
749,194
 
 
(150,087)

Total assets less current liabilities
  
749,709
20

  

  

Net assets
  
749,709
20


Capital and reserves
  

Called up share capital 
 16 
20
20

Profit for the year
  
749,689
4,000

Dividends paid

 9 

-
(4,000)

Profit and loss account carried forward
  
749,689
-

  
749,709
20


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 October 2024.


M F D'Abbadie
Director

The notes on pages 18 to 29 form part of these financial statements.

Page 11

 
SPARK IMPACT HOLDINGS LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2023
20
495
785,389
785,904
785,904


Comprehensive income for the year

Profit for the year
-
-
110,030
110,030
110,030


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
110,030
110,030
110,030


Total transactions with owners
-
-
-
-
-


At 31 December 2023
20
495
895,419
895,934
895,934


The notes on pages 18 to 29 form part of these financial statements.

Page 12

 
SPARK IMPACT HOLDINGS LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2021 (as restated)
20
495
838,154
838,669
838,669


Comprehensive income for the year

Loss for the year
-
-
(48,765)
(48,765)
(48,765)


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
(48,765)
(48,765)
(48,765)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(4,000)
(4,000)
(4,000)


Total transactions with owners
-
-
(4,000)
(4,000)
(4,000)


At 31 December 2021 (as restated)
20
495
785,389
785,904
785,904


The notes on pages 18 to 29 form part of these financial statements.

Page 13

 
SPARK IMPACT HOLDINGS LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
20
-
20


Comprehensive income for the year

Profit for the year
-
749,689
749,689


Total transactions with owners
-
-
-


At 31 December 2023
20
749,689
749,709


The notes on pages 18 to 29 form part of these financial statements.

Page 14

 
SPARK IMPACT HOLDINGS LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
20
-
20


Comprehensive income for the year

Profit for the year
-
4,000
4,000


Contributions by and distributions to owners

Dividends: Equity capital
-
(4,000)
(4,000)


Total transactions with owners
-
(4,000)
(4,000)


At 31 December 2022
20
-
20


The notes on pages 18 to 29 form part of these financial statements.

Page 15

 
SPARK IMPACT HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
110,030
(48,765)

Adjustments for:

Depreciation of tangible assets
-
454

Interest received
(2,104)
-

Taxation charge
5,373
-

(Increase)/decrease in debtors
(424,503)
15,473

(Decrease)/increase in creditors
(6,086)
1,256

Net cash generated from operating activities

(317,290)
(31,582)


Cash flows from investing activities

Sale of listed investments
29,725
23,143

Sale of unlisted and other investments
149,592
-

Interest received
2,106
-

Net cash from investing activities

181,423
23,143

Cash flows from financing activities

Dividends paid
-
(4,000)

Net cash used in financing activities
-
(4,000)

Net (decrease) in cash and cash equivalents
(135,867)
(12,439)

Cash and cash equivalents at beginning of year
391,523
403,962

Cash and cash equivalents at the end of year
255,656
391,523


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
255,656
391,523

255,656
391,523


The notes on pages 18 to 29 form part of these financial statements.

Page 16

 
SPARK IMPACT HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

391,523

(135,867)

255,656


391,523
(135,867)
255,656

The notes on pages 18 to 29 form part of these financial statements.

Page 17

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

The company is a private company limited by shares, which is incorporated under the Companies Act 2006 and registered in England and Wales (no.09988752). The address of the registered office is Suite 6c The Plaza, 100 Old Hall Street, Liverpool, L3 9QJ.
These financial statements present information about the group and the company. The principal activity of the group is acting as investment fund managers.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.



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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 18

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

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

Rendering of services

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

 
2.4

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.5

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Office equipment
-
33%
straight line
Computer equipment
-
25%
straight line

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

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

Page 19

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

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

 
2.7

Debtors

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

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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

 
2.9

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance Sheet when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Page 20

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.9
Financial instruments (continued)


Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.10

Creditors

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

Page 21

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Dividends

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

 
2.12

Pensions

Defined contribution pension plan

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

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

 
2.13

Interest income

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

 
2.14

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The directors have made judgments regarding the amortisation of goodwill and the depreciation of fixed assets.


4.


Turnover

The whole of the turnover is attributable to the principal business activity.

All turnover arose within the British Isles.

Page 22

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2023
2022
£
£

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements
20,500
20,455


6.


Employees







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


        2023
        2022
            No.
            No.







Directors
2
2

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)

7.


Interest receivable

2023
2022
£
£


Other interest receivable
2,106
6,285

2,106
6,285

Page 23

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
5,373
507


5,373
507


Total current tax
5,373
507

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
115,403
(48,258)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
27,120
(9,169)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
602
4,625

Utilisation of tax losses
(5,039)
5,070

Short term timing difference leading to an increase (decrease) in taxation
(1,172)
-

Fixed asset differences
-
(19)

Other differences leading to an increase (decrease) in the tax charge
(16,138)
-

Total tax charge for the year
5,373
507


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Dividends

2023
2022
£
£


Dividends paid
-
4,000

-
4,000


10.


Tangible fixed assets

Group






Office equipment

£



Cost or valuation


At 1 January 2023
31,327



At 31 December 2023

31,327



Depreciation


At 1 January 2023
31,327



At 31 December 2023

31,327



Net book value



At 31 December 2023
-



At 31 December 2022
-

Page 25

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Fixed asset investments

Group





Listed investments
Unlisted investments
Total

£
£
£





At 1 January 2023
29,725
149,592
179,317


Disposals
(29,725)
(149,592)
(179,317)



At 31 December 2023
-
-
-




Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 January 2023
515
149,592
150,107


Disposals
-
(149,592)
(149,592)



At 31 December 2023
515
-
515





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

SPARK Impact Limited
Suite 6c The Plaza, 
 Old Hall Street, Liverpool, L3 9QJ
-
Ordinary
-
100%
-
SPARK Northwest GP Limited
Suite 6c The Plaza,  
Old Hall Street, Liverpool, L3 9QJ
-
Ordinary
-
100%
-
SPARK TMT (GP) Limited
Suite 6c The Plaza,  
Old Hall Street, Liverpool, L3 9QJ
-
Ordinary
-
100%
-

Page 26

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)

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

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

SPARK Impact Limited
463,501
60,240

SPARK Northwest GP Limited
73
-

SPARK TMT (GP) Limited
1
-


12.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£



Trade debtors
2,000
-
-
-

Amounts owed by group undertakings
-
-
121,874
-

Other debtors
652,462
229,449
627,815
-

Called up share capital not paid
20
20
20
20

Prepayments and accrued income
3,480
3,991
-
-

657,962
233,460
749,709
20



13.


Cash and cash equivalents

Group
Group
2023
2022
£
£

Cash at bank and in hand
255,655
391,519

255,655
391,519


Page 27

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
2,668
6,735
-
-

Amounts owed to group undertakings
-
-
-
149,592

Corporation tax
5,373
-
-
-

Other creditors
1,102
515
515
515

Accruals and deferred income
8,540
11,142
-
-

17,683
18,392
515
150,107



15.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
255,656
421,248
-
-

Financial assets that are debt instruments measured at amortised cost
651,349
229,469
749,688
-

907,005
650,717
749,688
-


Financial liabilities

Financial liabilities measured at amortised cost
(12,310)
(18,392)
-
-


Financial assets measured at fair value through profit or loss comprises of cash at bank and in hand.
Financial assets that are debt instruments measured at amortised cost comprises of trade and other debtors.


Financial liabilities measured at amortised cost comprises of trade creditors, other creditors and accruals.


16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,000 (2022 - 2,000) Ordinary shares of £0.01 each
20
20


Page 28

 
SPARK IMPACT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Reserves

Capital redemption reserve

This reserve represents the amount equal to the nominal value of shares repurchased by the company to date.

Profit and loss account

Retained earnings includes all current retained profits and losses less dividends paid.


18.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £nil (2022: £nil). Contributions totalling £nil (2022 - £nil) were payable to the fund at the balance sheet date.


19.


Related party transactions

At the balance sheet date, an amount of £121,874 was owing to the company by its subsidiary SPARK Impact Limited. In 2022 £149,592 was owed by the company to its subsidiary company SPARK Impact Limited. 
The following amounts were due from the directors: 


2023
2022
£
£

M F D'Abbadie
313,907
-
M Borzomato
313,907
-
627,814
-

All of the above loans are unsecured. Interest has been charged at 2.25%.
During the year, a listed investment in Incanthera PLC was sold to the directors. An unlisted investment in Spark TMT 1 LP was also sold to the directors. 


20.


Controlling party

The company is controlled by M F D'Abbadie and M Borzomato by virtue of their shareholdings.

 
Page 29