Registered number: 11066556
Monek Data Services Limited
Financial statements
For the Period Ended 30 June 2023
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Monek Data Services Limited
Registered number:11066556
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Balance Sheet
As at 30 June 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Monek Data Services Limited
Registered number:11066556
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Balance Sheet (continued)
As at 30 June 2023
The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
___________________________
M Carroll
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The notes on pages 3 to 13 form part of these financial statements.
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
Monek Data Services Limited is a company incroporated in England and Wales under the Companies Act. The address of the registered office is give in the company information section. The nature of the company's operations and its pricipal activity is to provide information technology consultancy.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with the Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006. The prior year financial statements have been restated for material adjustments on adoption of FRS 101 in the current year. For more information see notes to these financial statement further on in this report.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 101 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
This information is included in the consolidated financial statements of Monek Group Limited as at 30 June 2023 and these financial statements may be obtained from Monek Group Limited, Sterling House, F2/F3 Davidson Road, Lichfield, England, WS14 9DZ.
The company has, as planned, recorded a loss for the year, whilst it continues with its investment in developing its offering to the payments industry. The directors believe that the group has demonstrated significant further progress towards achieving its objectives of a distinguished leader in the payments industry.
The directors have prepared cashflow forecasts covering a period extending beyond 12 months from the date of approval of these financial statements, taking account of anticipated costs and revenues, which demonstrates that the company can operate within the finance facilities available to it and therefore the directors consider it is appropriate to prepare the company's financial statements on a going concern basis.
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
2.Accounting policies (continued)
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Impact of new international reporting standards, amendments and interpretations
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The financial statements for the 18 months ended 30 June 2023 have been prepared in accordance with Financial Reporting Standard 101 (FRS 101) ‘Reduced Disclosure Framework’. The following new standards, amendments, and interpretations issued by the International Accounting Standards Board (IASB) and the Financial Reporting Council (FRC) have been adopted in these financial statements:
IFRS 17 Insurance Contracts: Effective for annual periods beginning on or after 1 January 2023, IFRS 17 replaces IFRS 4 and establishes principles for the recognition, measurement, presentation, and disclosure of insurance contracts. The adoption of IFRS 17 did not have a material impact on the financial statements as the company does not engage in insurance activities.
Amendments to IAS 1 Presentation of Financial Statements: These amendments, effective for annual periods beginning on or after 1 January 2023, clarify the classification of liabilities as current or non-current. The adoption of these amendments did not result in significant changes to the classification of the company’s liabilities.
Amendments to IFRS 3 Business Combinations: Effective for annual periods beginning on or after 1 January 2023, these amendments update the reference to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. The adoption of these amendments did not have a significant impact on the financial statements.
Amendments to IAS 16 Property, Plant and Equipment: These amendments, effective for annual periods beginning on or after 1 January 2023, prohibit deducting from the cost of an item of property, plant, and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The adoption of these amendments did not have a material impact on the financial statements.
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Effective for annual periods beginning on or after 1 January 2023, these amendments specify which costs a company includes when assessing whether a contract will be loss-making. The adoption of these amendments did not have a significant impact on the financial statements.
The company has not early adopted any other standard, interpretation, or amendment that has been issued but is not yet effective. The directors anticipate that the adoption of these standards, amendments, and interpretations in future periods will not have a material impact on the financial statements of the company.
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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:
The Company has contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company adjusts the transaction prices of these contracts for the time value of money.
A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.
Rendering of services
Revenue from providing services is recognised in the accounting period in which the services are rendered.
For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Interest income is recognised in profit or loss using the effective interest method.
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the Period comprises current and deferred tax. 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 operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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.
The estimated useful lives range as follows:
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
2.Accounting policies (continued)
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:
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.
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.
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Cash and cash equivalents
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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.
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In the application of the company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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.
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.
Intangible fixed assets are amortised over their useful lives. The estimated useful lives of the assets are assessed annually.
The directors are required to exercise an element of judgement in estimating the profit to be recognised on service contracts. Profit is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses, and by estimating total costs to be incurred on completing a contract.
Actual results could differ from those estimated. 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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL).
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
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At 1 January 2023 (as previously stated)
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At 1 January 2023 (as restated)
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Charge for the Period on owned assets
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
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Charge for the Period on owned assets
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The auditors' report on the financial statements for the Period ended 30 June 2023 was unqualified.
The audit report was signed on 15 January 2025 by Mark Gurney FCCA (Senior Statutory Auditor) on behalf of Dains Audit Limitd.
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
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Amounts owed by group undertakings
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Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
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Charged to profit or loss
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The deferred taxation balance is made up as follows:
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Fixed asset timing differences
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Tax losses carried forward
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During the period, the Company identified an error in the financial statements of the prior year. This error pertained to the amortisation of development costs, which should have been recognised but were omitted. To correct this error, a prior year adjustment has been processed to recognise development cost amortisation charges amounting to £84,367. This adjustment has been retrospectively applied to the comparative figures presented in these financial statements.
The impact of this adjustment on the financial statements is as follows:
Statement of Financial Position: The carrying amount of intangible assets as at 31 December2022 has been reduced by £84,367.
Statement of Comprehensive Income: The amortisation expense for the prior year has increased by £84,367, resulting in a corresponding decrease in the profit for the year.
Equity: The retained earnings as at 31 December 2022 have been reduced by £84,367.
This adjustment ensures that the financial statements present a true and fair view of the Company’s financial position and performance in accordance with FRS 101.
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Monek Data Services Limited
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Notes to the Financial Statements
For the Period Ended 30 June 2023
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £Nil (year ended 31 December 2022 - £4,485). Contributions totalling £Nil (31 December 2022 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.
At 30 June 2023, the immediate and ultimate parent undertaking is Monek Group Limited, a company incorporated in the United Kingdom and registered in England and Wales. Copies of the financial statements for Monek Group Limited can be obtained from its registered office, Monek Group Limited, Sterling House, F2/F3 Davidson Road, Lichfield, England, WS14 9DZ.
The parent undertaking of the largest and smallest group to consolidate their financial statements is Monek Group Limited.
At 30 June 2023, the Directors considered there to be no ultimate controlling party.
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