Registered number: 11091040
Monek Group Limited
Financial statements
For the Period Ended 30 June 2023
|
Monek Group Limited
Registered number: 11091040
Consolidated Balance Sheet
As at 30 June 2023
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
Other non-current investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monek Group Limited
Registered number: 11091040
Consolidated Balance Sheet (continued)
As at 30 June 2023
|
|
|
|
|
|
|
|
|
|
|
|
Capital redemption reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The Group's financial statements have been delivered in accordance with the provisions applicable to entities subject to the small companies regime.
The Group has opted not to file the consolidated statement of comprehensive income in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements on pages 1 to 33 were approved and authorised for issue by the board of directors on 23 January 2025 and were signed on its behalf by:
___________________________
M Carroll
|
|
The notes on pages 5 to 33 form part of these financial statements.
|
Monek Group Limited
Registered number: 11091040
Company Balance Sheet
As at 30 June 2023
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
Other non-current investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital redemption reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
Monek Group Limited
Registered number: 11091040
Company Balance Sheet (continued)
As at 30 June 2023
The Company's loss for the period was £80,197 (2021 - profit £98).
The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The Company's financial statements have been delivered in accordance with the provisions applicable to entities subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements on pages 1 to 33 were approved and authorised for issue by the board of directors on 23 January 2025 and were signed on its behalf by:
___________________________
M Carroll
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
1.Accounting policies
The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
∙has power over the investee;
∙is exposed, or has rights, to variable returns from its involvement with the investee; and
∙has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:
∙the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
∙potential voting rights held by the Company, other vote holders or other parties;
∙rights arising from other contractual arrangements; and
∙any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at this time that decisions need to be made, including voting patterns at previous shareholders' meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
1.Accounting policies (continued)
The Group has, as planned, recorded a loss for the year of £699,714 but has equity of £16,051,123. 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 Group can operate within the finance facilities available to it and therefore the Directors consider it is appropriate to prepare the Group''s financial statements on a going concern basis.
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value, except that:
∙deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 respectively;
∙liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 at the acquisition date; and
∙assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS.
When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
1.Accounting policies (continued)
|
|
Business combinations (continued)
|
value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognised in profit or loss.
When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognised at that date.
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business (see note 1.3) less accumulated impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment 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 its carrying amount, 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 based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
1.Accounting policies (continued)
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control over a product or service to a customer.
The Group does not expect to have any 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 Group does not adjust any of the transaction prices for the time value of money.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
The Group assesses whether a contract is or contains a lease, at inception of a contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
∙fixed lease payments (including in-substance fixed payments), less any lease incentives;
The lease liability is included in the 'Loans and borrowings' line in the Consolidated Balance Sheet.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
∙the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised discount rate.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
1.Accounting policies (continued)
|
The Group as a lessee (continued)
|
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. The costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are included in the 'Property, Plant and Equipment' and 'Investment Property' lines, as applicable, in the Consolidated Balance Sheet.
The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 1.9.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Group has used this practical expedient.
Retirement benefit costs and termination benefits
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
Payments to defined contribution retirement benefit plans are recognised as an expense when the employees have rendered service entitling them to the contributions.
Income tax expense represents the sum of the tax currently payable and deferred tax.
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
1.Accounting policies (continued)
|
Current and deferred tax for the period
|
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
|
|
Property, plant and equipment
|
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
over the term of the lease
|
|
(i) Intangible assets acquired separately
|
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
1.Accounting policies (continued)
|
|
Intangible assets (continued)
|
|
(ii) Internally-generated intangible assets
|
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:
∙the technical feasibility of completing the intangible asset so that it will be available for use or sale;
∙the intention to complete the intangible asset and use or sell it;
∙the ability to use or sell the intangible asset;
∙how the intangible asset will generate probable future economic benefits;
∙the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
∙the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
|
(iii) Intangible assets acquired in a business combination
|
Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a first in, first out basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.
Financial assets and financial liabilities are recognised when a Group entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
1.Accounting policies (continued)
|
|
Financial instruments (continued)
|
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Monek Group Limited (the 'Company') is a company limited by shares, incorporated in the United Kingdom and registered in England and Wales. The Company's registered office is at F2 & F3 City Wharf, Davidson Road, Lichfield, Staffordshire, WS14 9DZ. These consolidated financial statements comprise the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The Group is primarily involved in the provision of credit card processing to businesses via IP connectivity.
The Group's consolidated and the Company's individual financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 23 January 2025.
Details of the Group's accounting policies, including changes during the period, are included in note 1.
The Company has taken advantage of the exemption available under section 408 of the Companies Act 2006 and elected not to present its own Statement of Comprehensive Income in these financial statements.
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Group accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgements and estimates have been made in preparing the consolidated financial statements and their effects are disclosed in note 5.
The financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis on each reporting date.
|
|
|
|
Intangible assets acquired in a business combination
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
3.Basis of preparation (continued)
|
3.2 Changes in accounting policies
i) New standards, interpretations and amendments effective from 1 January 2022
|
There are no amendments to accounting standards, or IFRIC interpretations that are effective for the period ended 30 June 2023 that have a material impact on the Company’s financial statements.
The following Adopted IFRSs have been issued but have not been endorsed for use in the UK and have not been applied by the Company in these Financial Statements. The full impact of their adoption has not yet been fully assessed; however, management do not expect the changes to have a material effect on the Financial Statements unless otherwise indicated:
∙IFRS 16 amendments on lease liability in a Sale and Leaseback (1 January 2024)
∙IAS 1 amendments on classification of liabilities as current or non-current (1 January 2024)
∙IAS 1 amendments on non-current liabilities with covenants (1 January 2024)
|
Functional and presentation currency
|
These consolidated financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.
|
Accounting estimates and judgements
|
5.1 Judgement
Judgement
The preparation of the financial statements in conformity with generally accepted accounting practice requires the directors to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results in the future could differ from those estimates. In this regard, the Directors believe that the critical accounting policies where judgements or estimating are necessarily applied are summarised below.
Fixed assets
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 technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things such as future market conditions, the remaining life of the asset and projected disposal values.
Intangible fixed assets are amortised 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.
The Director has reviewed the asset lives and associated residual values of all fixed asset classes and has
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
5.Accounting estimates and judgements (continued)
concluded that a straight line depreciation policy is more appropriate as it reflects the useful economic lives of assets and their residual values more reliably than the reducing balance depreciation policy.
Impairment review of intangible fixed assets
The Group reviews the carrying amounts of its intangible assets annually, or more frequently if events or changes in circumstances indicate that the carrying amount may be impaired. The impairment review requires management to make significant judgements and estimates concerning the future cash flows expected to be generated by the intangible assets, the appropriate discount rates to apply to these cash flows, and the useful lives of the assets.
Key assumptions used in the impairment review include estimates of future cash flows based on the most recent financial budgets and forecasts approved by management, which reflect management's best estimate of the economic conditions that will exist over the remaining useful life of the asset; discount rates that reflect the current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted; and the useful lives of intangible assets based on management's estimates of the period over which the assets are expected to generate economic benefits. Changes in these assumptions could result in significant adjustments to the carrying amount of intangible assets and the recognition of impairment losses in the consolidated financial statements.
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
Employee benefit expenses
|
|
|
|
|
|
|
|
18 month period ended
30 June
|
12 month period ended
31 December
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined contribution pension cost
|
|
|
|
|
|
|
|
The monthly average number of persons, including the directors, employed by the Group during the period was as follows:
|
|
|
|
|
|
18 month period ended
30 June
|
12 month period ended
31 December
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired through business combinations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
7.Property, plant and equipment (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge owned for the period
|
|
|
|
|
|
|
|
Charged financed for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge owned for the period
|
|
|
|
|
|
|
|
Charged financed for the period
|
|
|
|
|
|
|
|
Acquired through business combinations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.1. Assets held under leases
|
|
The net book value of owned and leased assets included as "Property, plant and equipment" in the Consolidated Balance Sheet is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment owned
|
|
|
|
Right-of-use assets, excluding investment property
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
7.Property, plant and equipment (continued)
|
7.1 Assets held under leases (continued)
|
|
Information about right-of-use assets is summarised below:
Net book value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation charge for the period ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to right-of-use assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to right-of-use assets
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
Charge owned for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired through business combinations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortisation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired through business combinations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
|
|
|
|
|
|
Accumulated amortisation and impairment
|
|
|
|
|
|
|
|
|
|
|
Details of the Group's material subsidiaries at the end of the reporting period are as follows:
|
|
|
|
|
Place of incorporation and operation
|
Proportion of ownership interest and voting power held by the Group (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision of credit card processing to business via IP connectivity
|
|
|
|
|
2) Monek Merchant Services Limited
|
Authorised payment institution
|
|
|
|
|
3) Secure Hosting Limited
|
|
|
|
|
|
4) Monek Data Services Limited
|
Provision of information technology consultancy
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
Other non-current investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in subsidiary companies
|
|
|
|
|
|
|
|
|
|
Investments in subsidiary companies
|
|
|
|
|
|
|
|
|
|
Finished goods and goods for resale
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
|
Trade and other receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: provision for impairment of trade receivables
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
Total trade and other receivables
|
|
|
|
|
|
|
The carrying value of trade and other receivables classified as loans and receivables approximates fair value.
|
|
|
|
|
Receivables from related parties
|
|
|
|
|
|
|
|
|
|
|
|
Total trade and other receivables
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
|
|
|
|
Other payables - tax and social security payments
|
|
|
|
|
|
|
|
Total trade and other payables
|
|
|
|
Less: current portion - trade payables
|
|
|
|
Less: current portion - other payables
|
|
|
|
Less: current portion - accruals
|
|
|
|
Less: current portion - deferred income
|
|
|
|
|
|
|
|
Total non-current position
|
|
|
|
The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and borrowings
|
|
|
The carrying value of loans and borrowings classified as financial liabilities measured at amortised cost approximates fair value.
During the prior year, the Group obtained a bank loan of £150,000. 60 monthly payments are to be made following the date of first drawdown of the facility, with the first 12 months being an interest only period and 48 combined capital and interest monthly payments being made subsequently. Interest payable will be charged on the floating rate basis, under which the interest rate will never be less than 2.33%.
The bank loan is secured by way of a debenture over the assets and undertaking of the Group.
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
|
|
|
|
|
|
A Ordinary shares of £0.01 each
|
|
|
|
|
|
B Ordinary shares of £0.01 each
|
|
|
|
|
|
|
|
|
|
|
|
A Ordinary shares of £0.01 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rounding for share price of £0.01
|
|
|
|
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
15.Share capital (continued)
|
B Ordinary shares of £0.01 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Correction for shares held in Treasury
|
|
|
|
|
|
|
|
|
|
|
|
On 20 May 2022 17,953,840 A Ordinary shares of £0.01 each and 205,070 B Ordinary shares of £0.01 each, and on 7 June 2022 157,126 A Ordinary shares of £0.01 each and 172,658 B Ordinary shares of £0.01 each were issued in consideration for the transfer to Monek Group Limited of A Ordinary shares and B Ordinary shares in Datam Group Limited (company number 11066556, now known as Monek Data Services Limited). These shares were issued at a premium of £0.65 per share.
On 8 November 2022 104,167 A Ordinary shares of £0.01 each were issued at a premium of £0.71 per share.
As part of the UK trade and asset purchase agreement with Truevo Holdings Limited and subsidiary entities, on 20 January 2023 75,750 A Ordinary shares of £0.01 each were issued at par and 2,161,141 A Ordinary shares of £0.01 each were issued at a premium of £0.73 per share.
Share rights
All shares rank pari passu.
A Ordinary shares
a) Full voting rights - one vote per share
b) Full right to receive dividends and interim dividends if declared by the director of the Group.
c) Entitled to receive any distribution of capital should such a distribution be declared.
B Ordinary shares
a) Full voting rights - one vote per share
b) Full right to receive dividends and interim dividends if declared by the director of the Group.
c) Entitled to receive any distribution of capital should such a distribution be declared.
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
Share premium
The amount received in excess of the par value of shares issued less the associated costs of issue.
Capital redemption reserve
A statutory, non-distributable reserve into which amounts are transferred following the purchase of a company's own shares.
Retained earnings
Retained earnings represent cumulative profit or losses, net of dividends paid and other adjustments.
|
|
|
The Group leases motor vehicles and property from which it operates its business.
|
|
Lease liabilities are due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual undiscounted cash flows due
|
|
|
|
|
|
|
|
Between one year and five years
|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities included in the Consolidated Balance Sheet at 30 June
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
17.Leases (continued)
|
|
The following amounts in respect of leases have been recognised in profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on lease liabilities
|
|
|
|
|
Financial instruments - fair values and risk management
|
|
|
18.1 Accounting classifications and fair values
|
|
|
The following table shows the carrying amounts and fair values of financial assets and financial liabilities. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value
|
|
|
|
|
|
|
|
|
|
Financial lease liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
18.Financial instruments - fair values and risk management (continued)
|
18.1 Accounting classifications and fair values (continued)
|
|
Financial assets not measured at fair value
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value
|
|
|
|
|
|
|
|
|
|
Financial lease liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18.2 Value at Risk (VaR) analysis
|
|
|
The VaR measure estimates the potential loss in pre-taxation profit over a given holding period for a specified confidence level. The VaR methodology is a statistically defined, probability-based approach that takes into account market volatilities as well as risk diversification by recognising offsetting positions and correlations between products and markets. Risks can be measured consistently across all markets and products, and risk measures can be aggregated to arrive at a single risk number. The one-day 99% VaR number used by the Group reflects the 99% probability that the daily loss will not exceed the reported VaR.
|
|
While VaR captures the Group's daily exposure to currency and interest rate risk, sensitivity an evaluates the impact of a reasonably possible change in interest or foreign currency rates over a year. The longer time frame of sensitivity analysis complements VaR and helps the Group to assess its market risk exposures.
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
|
|
Business combinations during the period
|
|
19.1 Subsidiaries acquired
|
|
|
|
|
Proportion of voting equity interests acquired
|
Consideration transferred
|
|
|
|
|
|
|
|
Monek Data Services Limited ('MDS')
|
Provision of information technology consultancy
|
|
|
|
|
|
|
|
|
|
|
|
19.2 Consideration transferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consideration shares issued
|
|
|
|
|
|
|
19.3 Assets acquired and liabilities recognised at the date of acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
Trade and other receivables
|
|
|
|
|
|
|
|
Trade and other liabilities
|
|
|
|
|
|
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
19.Business combinations during the period (continued)
|
|
19.4 Goodwill arising on acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consideration transferred
|
|
|
|
Fair value of identifiable net assets acquired
|
|
|
|
Goodwill arising on acquisition
|
|
|
|
19.5 Net cash outflow on acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consideration paid in cash
|
|
|
Less: cash and cash equivalent balances acquired
|
|
|
|
|
|
|
|
The Group’s capital management objectives are:
• to ensure the Group’s ability to continue as a going concern, and
• to provide an adequate return to shareholders by pricing services in a way that reflects the level of risk involved in providing those services.
|
|
The Group monitors capital on the basis of the carrying amount of equity, less cash and cash equivalents as presented in the consolidated statement of financial position.
|
|
Management assesses the Group’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the various classes of Group debt. The Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
The Group is not subject to any externally imposed capital requirements.
|
|
During the period ended 30 June 2023, the Group's strategy was to maintain a gearing ratio within 1% to 10% which was unchanged from the previous period.
|
|
The gearing ratios at 30 June 2023 and 31 December 2021 were as follows:
|
|
Monek Group Limited
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
20.Capital management (continued)
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to total equity ratio
|
|
|
|
The Group has honoured its covenant obligations.
|
At 30 June 2023, the Directors considered there to be no ultimate controlling party.
The auditors' report on the financial statements for the period ended 30 June 2023 was unqualified.
The audit report was signed on 23 January 2025 by Mark Gurney FCCA (Senior Statutory Auditor) on behalf of Dains Audit Limited.
|