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REGISTERED NUMBER: 07000305 (England and Wales)















CARBON AND FINCH LIMITED

Report of the Director and

Unaudited Financial Statements for the Year Ended 31 August 2024






CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)






Contents of the Financial Statements
for the year ended 31 August 2024




Page

Company Information 1

Report of the Director 2

Balance Sheet 4

Notes to the Financial Statements 6


CARBON AND FINCH LIMITED

Company Information
for the year ended 31 August 2024







DIRECTOR: J Jakobsen





SECRETARY: Mrs A Jakobsen





REGISTERED OFFICE: Suite 8 in the Epsom Workhub
Second Floor, Epsom Square
6-7 Derby Square
Epsom
Surrey
KT19 8AG





REGISTERED NUMBER: 07000305 (England and Wales)





ACCOUNTANTS: Tudor John Limited
Nightingale House
46-48 East Street
Epsom
Surrey
KT17 1HQ

CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)

Report of the Director
for the year ended 31 August 2024

The director presents his report with the financial statements of the company for the year ended 31 August 2024.

REVIEW OF BUSINESS
Overview of Business Performance
Carbon and Finch Limited continued to expand its customer base over the past financial year, with a substantial focus on long-term growth and revenue diversification through strategic investments. While the company recorded a net loss of £90,648 for the year, this result reflects significant investments in new business development and restructuring activities, which are expected to drive enhanced profitability in the upcoming periods.
Despite the challenging economic climate and a decline in overall revenue by 24.5% from the previous year, Carbon and Finch has continued to invest in its core and new business initiatives. These investments have been directed towards creating scalable opportunities that are projected to generate sustainable revenue growth in the future.

Strategic Investments and Revenue Diversification
The company's strategy to diversify its revenue streams included a substantial allocation of resources to business development efforts and the introduction of innovative offerings targeted at small and medium-sized enterprises. A major highlight of this strategy has been the development and scaling of JeffreyAI, a robust AI-powered platform designed to deliver high-value, low-cost software solutions to SMEs and micro-businesses.
In response to growing demand for digital transformation tools among SMEs, the company invested heavily in the development and market validation of JeffreyAI. This strategic initiative has led to the acquisition of over 600 new accounts within the platform in its early stages, reflecting strong market interest and positioning JeffreyAI as a cornerstone of Carbon and Finch's future growth.

Restructuring of R&D Activities to Improve Profitability
During the year, Carbon and Finch completed the demerger of its R&D operations, transferring the majority of its research and development activities to JeffreyAI Ltd, a newly established legal entity fully owned by the company's founders. This strategic restructuring allows Carbon and Finch to concentrate its resources on core operational and sales functions, while JeffreyAI Ltd undertakes the responsibility for further development of its technology offerings.
The transition of R&D functions to JeffreyAI Ltd is anticipated to bring about notable improvements in profitability by significantly reducing the R&D expenditure within Carbon and Finch's accounts. By channelling development costs to the specialized entity, the company aims to increase efficiency and profitability, while retaining the capacity for high-impact innovation through JeffreyAI.

Financial Position and Liquidity
Although Carbon and Finch's net assets have reduced from £782,844 to £600,525, the company remains committed to managing its resources prudently to support future growth. The company's current ratio stands at 1.18, reflecting sufficient current assets to meet its short-term liabilities. However, management acknowledges the need for enhanced debt management and cost control measures to further strengthen the company's liquidity.

Outlook for the Coming Year
Looking forward, the company is optimistic about the impact of its strategic investments and the anticipated growth in its newly diversified revenue streams. The management expects that the newly structured R&D activities and continued market adoption of JeffreyAI will substantially contribute to a stronger financial position. As Carbon and Finch advances in its mission to deliver value-driven solutions for Enterprise and SME's, the company remains focused on achieving sustainable profitability.
The director extends appreciation to all stakeholders for their continued support and to the dedicated team whose commitment enables Carbon and Finch's strategic vision.

DIRECTOR
J Jakobsen held office during the whole of the period from 1 September 2023 to the date of this report.


CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)

Report of the Director
for the year ended 31 August 2024

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:



J Jakobsen - Director


4 November 2024

CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)

Balance Sheet
31 August 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 5 770,621 668,717
Tangible assets 6 4,556 4,607
775,177 673,324

CURRENT ASSETS
Debtors 7 887,790 456,900
Cash at bank 9 210
887,799 457,110
CREDITORS
Amounts falling due within one year 8 725,811 312,903
NET CURRENT ASSETS 161,988 144,207
TOTAL ASSETS LESS CURRENT
LIABILITIES

937,165

817,531

CREDITORS
Amounts falling due after more than one
year

9

306,998

34,687
NET ASSETS 630,167 782,844

CAPITAL AND RESERVES
Called up share capital 10 2 2
Retained earnings 11 630,165 782,842
SHAREHOLDERS' FUNDS 630,167 782,844

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2024 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)

Balance Sheet - continued
31 August 2024


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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 4 November 2024 and were signed by:





J Jakobsen - Director


CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)

Notes to the Financial Statements
for the year ended 31 August 2024

1. STATUTORY INFORMATION

Carbon and Finch Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006

3. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost convention.

The financial statements are prepared on a going concern basis.

TURNOVER
Turnover comprises the invoiced value of goods and services supplied by the company, net of value added tax.

INTANGIBLE ASSETS
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of ten years.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery etc - 33% on cost

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HIRE PURCHASE AND LEASING COMMITMENTS
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)

Notes to the Financial Statements - continued
for the year ended 31 August 2024

3. ACCOUNTING POLICIES - continued

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

FINANCIAL INSTRUMENTS
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial Liabilities

Basic financial liabilities, including trade and other payables, loans from fellow group companies 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 receipts discounted at a market rate of interest.

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

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

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 15 (2023 - 13 ) .

CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)

Notes to the Financial Statements - continued
for the year ended 31 August 2024

5. INTANGIBLE FIXED ASSETS
Development
costs
£   
COST
At 1 September 2023 1,012,959
Additions 225,778
At 31 August 2024 1,238,737
AMORTISATION
At 1 September 2023 344,242
Amortisation for year 123,874
At 31 August 2024 468,116
NET BOOK VALUE
At 31 August 2024 770,621
At 31 August 2023 668,717

6. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 September 2023 8,259
Additions 4,052
At 31 August 2024 12,311
DEPRECIATION
At 1 September 2023 3,652
Charge for year 4,103
At 31 August 2024 7,755
NET BOOK VALUE
At 31 August 2024 4,556
At 31 August 2023 4,607

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 675,789 443,246
Other debtors 212,001 13,654
887,790 456,900

CARBON AND FINCH LIMITED (REGISTERED NUMBER: 07000305)

Notes to the Financial Statements - continued
for the year ended 31 August 2024

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts 244,238 65,621
Trade creditors 100,547 77,962
Taxation and social security 171,528 116,833
Other creditors 209,498 52,487
725,811 312,903

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans - 34,687
Other creditors 306,998 -
306,998 34,687

10. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
2 Ordinary £1 2 2

11. RESERVES
Retained
earnings
£   

At 1 September 2023 782,842
Profit for the year 4,865
Dividends (157,542 )
At 31 August 2024 630,165

12. RELATED PARTY DISCLOSURES

As at 31st August 2024 JeffreyAI Limited, owned 100% by Mr & Mrs Jakobsen, owed Carbon & Finch Limited £100,189. During the year JeffreyAI Limited charged Carbon & Finch Limited £62,500 for marketing costs and Carbon & Finch Ltd charged JeffreyAI Limited £16,850 for software costs.