Company registration number 09669427 (England and Wales)
INFRONT FINANCIAL INFORMATION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
INFRONT FINANCIAL INFORMATION LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
INFRONT FINANCIAL INFORMATION LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
2,105,699
2,337,014
Tangible assets
4
45,723
82,476
Investments
5
1
1
2,151,423
2,419,491
Current assets
Debtors
6
1,396,216
1,684,162
Cash at bank and in hand
322,767
141,323
1,718,983
1,825,485
Creditors: amounts falling due within one year
7
(4,387,635)
(3,783,163)
Net current liabilities
(2,668,652)
(1,957,678)
Total assets less current liabilities
(517,229)
461,813
Creditors: amounts falling due after more than one year
8
(2,336,099)
(2,336,099)
Provisions for liabilities
(9,955)
Net liabilities
(2,863,283)
(1,874,286)
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
(2,863,284)
(1,874,287)
Total equity
(2,863,283)
(1,874,286)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 6 November 2024 and are signed on its behalf by:
Z Vucetic
Director
Company registration number 09669427 (England and Wales)
INFRONT FINANCIAL INFORMATION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1
(1,107,060)
(1,107,059)
Effect of opening balance adjustment
-
49,564
49,564
As restated
1
(1,057,496)
(1,057,495)
Year ended 31 December 2022:
Loss and total comprehensive income
-
(816,791)
(816,791)
Balance at 31 December 2022
1
(1,874,287)
(1,874,286)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(988,997)
(988,997)
Balance at 31 December 2023
1
(2,863,284)
(2,863,283)
INFRONT FINANCIAL INFORMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Infront Financial Information Limited is a private company limited by shares incorporated in England and Wales. The registered office is Egale 1, 80 St Albans Road, Watford, Hertfordshire, WD17 1DL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is reliant upon its parent company for financing and support. The parent company has confirmed that it will continue to support the company and will not seek repayment of its debt of £5,179,178 (2022: £4,600,621) until such time that the company can repay the debt without jeopardising its ability to continue.true
On this basis, the directors considers it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of the support of the parent company.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT. Turnover is recognised as the services are provided.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, over 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
INFRONT FINANCIAL INFORMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Internally generated development costs are capitalised as the work is carried out. The value recognised is based on the number of man hours completed. Development assets are amortised over their useful economic life from the date they are brought into use.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases, beginning at the point of use:
Development Costs
33.3% straight line
Customer List & Tech (NB)
10% straight line
Customer List (SA)
20% straight line
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
33.3% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.8
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Cash and cash equivalents
Cash at bank and in hand 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.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
INFRONT FINANCIAL INFORMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price.
Basic financial liabilities
Basic financial liabilities 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. Financial liabilities classified as payable within one year are not amortised.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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.
INFRONT FINANCIAL INFORMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.16
The cost of the company’s investment in its subsidiary undertaking reflected the underlying fair value of its net assets and goodwill at the time of acquisition. Following the hive-up of the subsidiary’s trade, the value of the company’s investment in that subsidiary undertaking fell below the amount at which it was stated in the company’s accounting records. The Companies Act 2006 requires that the investment be written down accordingly and that the amount be charged as a loss in the company’s profit and loss account. However, the director considered that, as there was no overall loss to the company, it would fail to give a true and fair view to charge that diminution to the company’s profit and loss account for the year and it should instead be re-allocated to goodwill and other intangible assets, so as to recognise in the company’s individual balance sheet the effective cost to the company of those investments and goodwill.
The financial effect on the results for the year of this departure by not treating the diminution as a loss in the company’s financial statements is set out in note 13 to the financial statements.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
18
17
3
Intangible fixed assets
Goodwill
Development Costs
Customer List & Tech (NB)
Customer List (SA)
Total
£
£
£
£
£
Cost
At 1 January 2023
1,351,839
47,476
1,309,748
255,786
2,964,849
Additions - internally developed
93,914
93,914
At 31 December 2023
1,351,839
141,390
1,309,748
255,786
3,058,763
Amortisation and impairment
At 1 January 2023
292,899
283,779
51,157
627,835
Amortisation charged for the year
135,184
7,913
130,975
51,157
325,229
At 31 December 2023
428,083
7,913
414,754
102,314
953,064
Carrying amount
At 31 December 2023
923,756
133,477
894,994
153,472
2,105,699
At 31 December 2022
1,058,940
47,476
1,025,969
204,629
2,337,014
INFRONT FINANCIAL INFORMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
107,169
Additions
7,463
Disposals
(5,951)
At 31 December 2023
108,681
Depreciation and impairment
At 1 January 2023
24,693
Depreciation charged in the year
40,889
Eliminated in respect of disposals
(2,624)
At 31 December 2023
62,958
Carrying amount
At 31 December 2023
45,723
At 31 December 2022
82,476
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1
1
6
Debtors
2023
2022
As restated
Amounts falling due within one year:
£
£
Trade debtors
775,244
1,042,350
Amounts owed by group undertakings
29,914
125,227
Other debtors
331,558
257,085
1,136,716
1,424,662
Deferred tax asset
259,500
259,500
1,396,216
1,684,162
INFRONT FINANCIAL INFORMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Trade creditors
60,528
23,451
Amounts owed to group undertakings
3,232,595
2,687,604
Other taxation and social security
213,291
189,126
Deferred income
545,564
578,220
Other creditors
4,724
203,531
Accruals
330,933
101,231
4,387,635
3,783,163
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
2,336,099
2,336,099
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Emphasis of matter - Hive up of investments
We draw attention to notes 1.16 & 13 of the financial statements, which describes the true and fair override of following the hive up of an investment. Our opinion is not modified in this respect.
Senior Statutory Auditor:
Ian Meaburn
Statutory Auditor:
Myers Clark
11
Related party transactions
The following amounts were outstanding at the reporting end date:
Included in creditors due within one year at the year end is an amount of £2,843,079 (2022: £2,264,521) and £2,336,099 (2022: £2,336,099) included in creditors due over one year owed to Infront ASA, the parent company.
INFRONT FINANCIAL INFORMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
12
Parent company
The company is a member of the Infront AS group, which is a company registered in Norway.
13
True and Fair Override
As explained in the true and fair override accounting policy note on page 7, in the prior year the Directors re-allocated part of the company’s cost of investment in its subsidiary undertaking to purchased goodwill.
The financial effect on the results of this true and fair override departure by not treating the diminution as a loss is to increase the company’s profit for the financial year by £2,661,587 less £576,677 amortisation charge in the year ended 2022. The amortisation charge in 2023 is £266,159.
14
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2022
2022
Notes
£
£
Adjustments to prior year
Accrued income
1
49,564
115,649
Equity as previously reported
(1,107,059)
(1,989,935)
Equity as adjusted
(1,057,495)
(1,874,286)
Analysis of the effect upon equity
Profit and loss reserves
49,564
115,649
Reconciliation of changes in loss for the previous financial period
2022
Notes
£
Adjustments to prior year
Accrued income
1
66,085
Loss as previously reported
(882,876)
Loss as adjusted
(816,791)
Notes to reconciliation
1) Accrued income
During the year the directors identified £66,085 of income that should have been accounted for in the year to December 2022. They also identified £49,564 of income that should have been accrued in previous periods.
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