Company registration number 09631389 (England and Wales)
ACCENDO HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
ACCENDO HOLDINGS LTD
COMPANY INFORMATION
Directors
C Menegatos
G P White
S Zaman
Company number
09631389
Registered office
Highstone House
165 High Street
Barnet
United Kingdom
EN5 5SU
Auditor
JF Francis Ltd
Francis House
2 Park Road
Barnet
Herts
EN5 5RN
ACCENDO HOLDINGS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 25
ACCENDO HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 29 February 2024.

Review of the business

The principal activity of the Group continued to be that of investment holding, brokerage services regulated by the FCA. In order to ensure that it continues to obtain regulatory approval by the authority, the Group regularly uses the services of an external consultant to review and check the internal systems and controls maintained by the company's compliance officer.

 

The Group has seen a decrease in revenue from £472,270 in 2023 to £270,846 this year due to lower activity of the subsidiary's business.

 

The directors are confident that the Group can be profitable in the coming years.

 

Future developments

 

The Directors recognise that the economic outlook for the coming years remains challenging and changes made in current year will benefit the group going forward.

 

The Directors consider that the group is well positioned in the challenging economic climate, and maintain and further improve the profitability of recent years and the Directors remain optimistic that the business is well positioned to perform well in a tough and competitive market.

Principal risks and uncertainties

Competition from similar entities of the subsidiary, Accendo Markets Ltd, is a residual risk for the firm. Counterparties providing the trading platform and other services to the firm’s clients also represent a residual risk. Changes in their policies may affect the subsidiary and in effect the group. The principal risks are further detailed in the Company’s pillar 3 statement at

https:/www.accendomarkets.com/pillar-3-disclosure/ .

 

Key Performance Indicators

The KPIs are turnover, operating profit, net assets and number of employees, which are set out below:

2024
2023
£
£
Turnover
270,846
472,270
Operating profit
47,783
177,357
Employees number
5
5

Going concern

At the time of approving the Directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have the appropriate procedures in place to review the capital adequacy requirements imposed by FCA on a daily basis for the subsidiary of the Group. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board

G P White
Director
21 June 2024
ACCENDO HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 29 February 2024.

Results and dividends

The results for the year are set out on page 7.

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

No preference 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:

C Menegatos
G P White
S Zaman
Auditor

JF Francis Ltd were appointed as auditor to the group 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 group 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 directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ACCENDO HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of:true

- Review of the business and future developments

- Going concern

- Principal risks and uncertainties.

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 auditor of the company 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 auditor of the company is aware of that information.

 

On behalf of the board
G P White
Director
21 June 2024
ACCENDO HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACCENDO HOLDINGS LTD
- 4 -
Opinion

We have audited the financial statements of Accendo Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 group's and 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.

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:

ACCENDO HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ACCENDO HOLDINGS LTD
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent 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.

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. We designed procedures capable of detecting non-compliance with laws and regulations and irregularities, including fraud, through:

ACCENDO HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ACCENDO HOLDINGS LTD
- 6 -

Our audit procedures were designed to respond to the identified risks relating to non-compliance with laws and regulations and irregularities (including fraud) that are material to the financial statements.

Our audit procedures in relation to non-compliance with laws and regulations included, but were not limited to:

 

Our audit procedures in relation to irregularities and fraud included, but were not limited to:

 

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management.

 

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

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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Frank Yiallouris (Senior Statutory Auditor)
For and on behalf of JF Francis Ltd
21 June 2024
Chartered Certified Accountants
Statutory Auditor
Francis House
2 Park Road
Barnet
Herts
EN5 5RN
ACCENDO HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
270,846
472,270
Cost of sales
(103,865)
(129,220)
Gross profit
166,981
343,050
Administrative expenses
(119,198)
(165,693)
Operating profit
4
47,783
177,357
Interest receivable and similar income
7
663
130
Profit before taxation
48,446
177,487
Tax on profit
8
(7,498)
(34,318)
Profit for the financial year
40,948
143,169
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

ACCENDO HOLDINGS LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
29 FEBRUARY 2024
29 February 2024
- 8 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
12
145,185
154,110
Cash at bank and in hand
31,040
22,807
176,225
176,917
Creditors: amounts falling due within one year
13
(180,926)
(222,566)
Net current liabilities
(4,701)
(45,649)
Capital and reserves
Called up share capital
15
991,900
2,191,900
Other reserves
-
0
(2,249,900)
Profit and loss reserves
(996,601)
12,351
Total equity
(4,701)
(45,649)
The financial statements were approved by the board of directors and authorised for issue on 21 June 2024 and are signed on its behalf by:
21 June 2024
G P White
Director
Company registration number 09631389 (England and Wales)
ACCENDO HOLDINGS LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2024
29 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
10
520,000
1,330,000
Current assets
Debtors
12
94,200
82,200
Cash at bank and in hand
361
384
94,561
82,584
Creditors: amounts falling due within one year
13
(244,941)
(229,471)
Net current liabilities
(150,380)
(146,887)
Net assets
369,620
1,183,113
Capital and reserves
Called up share capital
15
991,900
2,191,900
Profit and loss reserves
(622,280)
(1,008,787)
Total equity
369,620
1,183,113

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £813,493 (2023 - £873,134 loss).

The financial statements were approved by the board of directors and authorised for issue on 21 June 2024 and are signed on its behalf by:
21 June 2024
G P White
Director
Company registration number 09631389 (England and Wales)
ACCENDO HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
Share capital
Other Reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
2,290,900
(2,249,900)
(49,818)
(8,818)
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
143,169
143,169
Dividends
9
-
-
(180,000)
(180,000)
Reduction of shares
15
(99,000)
-
-
(99,000)
Other movements
-
-
99,000
99,000
Balance at 28 February 2023
2,191,900
(2,249,900)
12,351
(45,649)
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
40,948
40,948
Reduction of shares
15
(1,200,000)
-
-
(1,200,000)
Other movements
-
2,249,900
(1,049,900)
1,200,000
Balance at 29 February 2024
991,900
-
(996,601)
(4,701)
ACCENDO HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
2,290,900
(54,653)
2,236,247
Year ended 28 February 2023:
Loss and total comprehensive income for the year
-
(873,134)
(873,134)
Dividends
9
-
(180,000)
(180,000)
Reduction of shares
15
(99,000)
-
(99,000)
Other movements
-
99,000
99,000
Balance at 28 February 2023
2,191,900
(1,008,787)
1,183,113
Year ended 29 February 2024:
Profit and total comprehensive income
-
(813,493)
(813,493)
Reduction of shares
15
(1,200,000)
-
(1,200,000)
Other movements
-
1,200,000
1,200,000
Balance at 29 February 2024
991,900
(622,280)
369,620
ACCENDO HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
52,440
183,881
Income taxes paid
(34,624)
(53,128)
Net cash inflow from operating activities
17,816
130,753
Investing activities
Repayment of loans
(10,246)
-
Interest received
663
130
Net cash (used in)/generated from investing activities
(9,583)
130
Financing activities
Dividends paid to equity shareholders
-
0
(180,000)
Net cash used in financing activities
-
(180,000)
Net increase/(decrease) in cash and cash equivalents
8,233
(49,117)
Cash and cash equivalents at beginning of year
22,807
71,924
Cash and cash equivalents at end of year
31,040
22,807
ACCENDO HOLDINGS LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
11,977
50,068
Investing activities
Repayment of loans
(12,000)
-
0
Dividends received
-
0
130,000
Net cash (used in)/generated from investing activities
(12,000)
130,000
Financing activities
Dividends paid to equity shareholders
-
(180,000)
Net cash used in financing activities
-
(180,000)
Net (decrease)/increase in cash and cash equivalents
(23)
68
Cash and cash equivalents at beginning of year
384
316
Cash and cash equivalents at end of year
361
384
ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Accendo Holdings Ltd (“the company”) is a company limited by shares domiciled and incorporated in England and Wales. The registered office is Highstone House, 165 High Street, Barnet, United Kingdom, EN5 5SU.

 

The group consists of Accendo Holdings Ltd and all of its subsidiaries.

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.

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
Basis of consolidation

The consolidated financial statements incorporate those of Accendo Holdings Ltd and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

The holding company created as part of group re-organisation and merger accounting is being used. The merged group had been combined throughout the current and comparative accounting period. Merger accounting principles for these combinations gave rise to a merger reserve in the consolidated statement of financial position, being the difference between the nominal value of new shares issued by the Parent Company for the acquisition of the shares of the subsidiary and the subsidiary’s own share capital.

 

All financial statements are made up to 29 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The losses of the parent company have arisen from impairement of the investment to the subsidiary. The subsidiary is continuing at a trade profitable and the directors believe that further impairement is not required. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Group turnover represents commissions receivable from providing brokerage services. Turnover is recognised when the brokerage services are provided.

 

ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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 group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
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.

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 group 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 group 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.

ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
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 group's contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the group 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 group.

1.9
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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 income statement, 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 if, and only if, there is 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.

ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
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 leased asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

The following are key judgements that management have made in the process of applying Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

 

- Provisions: at the year end, the Group evaluates the need for any provisions for impairement of fixed asset investments, which requires management to make judgements.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Commissions receivable
270,846
472,270
ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
3
Turnover and other revenue
(Continued)
- 19 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
270,846
472,270
2024
2023
£
£
Other revenue
Interest income
663
130
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Operating lease charges
936
996
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 group and company
2,880
2,880
Audit of the financial statements of the company's subsidiaries
4,320
4,320
7,200
7,200
For other services
All other non-audit services
9,431
6,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Cost of Sales
2
2
-
-
Administration
3
3
3
3
Total
5
5
3
3
ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
6
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
140,400
161,400
-
0
-
0
Social security costs
10,243
14,735
-
-
Pension costs
3,175
3,228
-
0
-
0
153,818
179,363
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
251
46
Other interest income
412
84
Total income
663
130
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
251
46
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
7,498
34,318
ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
8
Taxation
(Continued)
- 21 -

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

2024
2023
£
£
Profit before taxation
48,446
177,487
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
12,112
33,723
Tax effect of expenses that are not deductible in determining taxable profit
98
595
Tax effect of income not taxable in determining taxable profit
(2,500)
-
0
Unutilised tax losses carried forward
783
-
0
Effect of change in corporation tax rate
(172)
-
Group relief
(2,138)
-
0
Tax at marginal rate
(685)
-
0
Taxation charge
7,498
34,318
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
180,000
10
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
520,000
1,330,000
ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
10
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 29 February 2024
1,330,000
Impairment
At 1 March 2023
-
Impairment losses
810,000
At 29 February 2024
810,000
Carrying amount
At 29 February 2024
520,000
At 28 February 2023
1,330,000
11
Subsidiaries

Details of the company's subsidiaries at 29 February 2024 are as follows and were included in this consolidated financial statements:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Accendo Markets Ltd
UK
Brokerage services
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Accendo Markets Ltd
145,679
34,441
12
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Amounts owed by undertakings in which the company has a participating interest
103,538
124,961
75,000
75,000
Other debtors
17,626
7,203
19,200
7,200
Prepayments and accrued income
24,021
21,946
-
0
-
0
145,185
154,110
94,200
82,200
ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
13
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
1,705
2,880
-
0
2,880
Amounts owed to group undertakings
-
0
-
0
87,671
69,321
Corporation tax payable
7,498
34,624
-
0
-
0
Other creditors
156,603
167,542
154,390
154,390
Accruals and deferred income
15,120
17,520
2,880
2,880
180,926
222,566
244,941
229,471
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,175
3,228

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

15
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
90,000
90,000
900
900
B Ordinary shares of £100 each
1
1
100
100
90,001
90,001
1,000
1,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
990,900
2,190,900
990,900
2,190,900
Preference shares classified as equity
990,900
2,190,900
Total equity share capital
991,900
2,191,900

The holders of the ordinary A shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the meetings of the Company.

 

The holders of the ordinary B shares are entitled to receive dividends but have no voting rights.

 

The holders of the preference shares are not entitled to receive dividends. They have no voting rights and they are non redeemable.

ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
16
Events after the reporting date

The Company in June 2024 made arrangements to reduce the share capital in order to decrease its losses.

17
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
44,400
44,400
Transactions with related parties

The company has taken advantage of exemption available under the FRS102 “the financial Reporting Standard applicable in the UK and Republic of Ireland” to not to disclose related party transactions with wholly owned subsidiaries within the group.

Other information

Included in other debtors is an interest free amount of £103,538 (2023 - £124,961) due from the companies, where the directors have controlling interests.

 

Included in other creditors is an interest free amount of £156,001(2023 - £156,001) due from the companies, where the directors have controlling interests.

18
Directors' transactions

Included in other debtors is an interest free amount of £17,446 (2023 - £6,261) due from the directors, who have controlling interests in the company.

19
Controlling party

There is no single ultimate controlling party.

20
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
40,948
143,169
Adjustments for:
Taxation charged
7,498
34,318
Investment income
(663)
(130)
Movements in working capital:
Decrease/(increase) in debtors
19,171
(21,463)
(Decrease)/increase in creditors
(14,514)
27,987
Cash generated from operations
52,440
183,881
ACCENDO HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 25 -
21
Cash generated from operations - company
2024
2023
£
£
Loss for the year after tax
(813,493)
(873,134)
Adjustments for:
Investment income
-
0
(130,000)
Other gains and losses
810,000
1,010,000
Movements in working capital:
Decrease in debtors
-
100
Increase in creditors
15,470
43,102
Cash generated from operations
11,977
50,068

 

22
Analysis of changes in net funds - group
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
22,807
8,233
31,040
23
Analysis of changes in net funds - company
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
384
(23)
361
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