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Registered number: 10728804










DATA GRID SOLUTIONS PLC










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

 
DATA GRID SOLUTIONS PLC
 
 
COMPANY INFORMATION


Directors
O Bobylov 
D Kaganovich 




Company secretary
O Bobylov



Registered number
10728804



Registered office
14th Floor
33 Cavendish Square

London

W1G 0PW




Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
DATA GRID SOLUTIONS PLC
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Analysis of net debt
14
Notes to the financial statements
15 - 27


 
DATA GRID SOLUTIONS PLC
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present the strategic report for the year ended 30 April 2024.

Fair review of the business
 
The principal activities of the Company are provision of financial data distribution technology and specialised technology support and infrastructure development and operational support services to Fintech firms. The Company additionally earns revenue from a portfolio of assets that it acquired in 2019 as well as generating revenue from its own principal trading activities.

Development and performance

The Company has made a loss of £3,715,689 (2023: £1,956,330) for the year to 30 April 2024.
The loss occurred during the year due to a unrealised losses on investments of £136,953 (gains 2023: £291,850). There were further one off amounts written off investments of £422,317 during 2024 (2023: nil).
Administrative expenses have increased to £850,726 from £121,346 in the year 30 April 2024. This increase has been led by staff expense increases, significant expenditure in software development and IT subscriptions, intangible asset amortisation and foreign exchange losses.
Investment losses increased to £136,953 (gain 2023: £291,850) due to less principal trading activity that the directors undertook and unrealised fair value losses.
Investment income decreased to £661,864 (2023: £771,392) as the Company continued to make returns on its investments at a lower rate. The portfolio of assets held by the Company has reduced the Company’s credit risk and the risk of the Company’s ability to repay its future liabilities. Assets held by the Company have maturity dates ranging from 1-5 years and are being amortised accordingly.

Future developments

The Company has continued with the development of IT solutions and IT infrastructure for Financial services companies. The Company started investing in the development of an intangible asset which amounted a total investment of £1,676,991 (2023: £739,858) during the year. This asset begun producing revenue during the current year.
One of the company’s IT solutions provides financial services and firms with AML monitoring requirements with streamlined compliance and regulatory tools to onboard clients and undertake enhanced transaction monitoring.
Another company’s asset is a suite of FinTech software solutions for financial services companies that include: back and middle office systems, order management tools, CRM software, comprehensive reporting functionality and implementation of compliant general IT infrastructure.

Financial key performance indicators
 
A key performance indicator is the revenue received from investments. The company generated income of £661,864 (2023: £771,392) from investments. This revenue has decreased due to changes in the composition of the investment portfolio. 
The Company’s business lines are regularly reviewed as it is the responsibility of the directors to bring the company back to profitability in the forthcoming years.

Page 1

 
DATA GRID SOLUTIONS PLC
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Principal risks and uncertainties
 
Liquidity Risk
The Company is exposed to liquidity risk as it has issued privately debt instruments. This risk is mitigated by the firm’s investment strategy which aims to earn sufficient income to repay its liabilities due in December 2027.
Credit Risk
The Company is exposed to credit risk as it has a portfolio of bond and promissory note investments. This risk is mitigated by regular review of the Company’s investments and call option agreements which mitigate the risk of a counterparty default.
Market Risk
The Company is exposed to market risk, including price and foreign exchange risk as it has a portfolio of bond investments and loans. This risk is mitigated by review of the Company’s regular review of the Company’s investments and foreign exchange positions. 

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172 of The Companies Act 2006 states that a director of a company must act in the way it considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.
In doing so a director of a company must have regard (amongst other matters) to:-
a. The likely consequences of any decision in the long term;
b. The interests of the company’s employees;
c. The need to foster the company’s business relationships with suppliers, customers and others;
d. The impact of the company’s operations on the community and the environment;
e. The desirability of the company maintaining a reputations for high standards of business conduct;
f. The need to act fairly as between members of the company.
The following summarises how the company’s Board fulfils its duties under Section 172.
Decision Making
The Board fulfils its duties to act in good faith to promote the success of the company through its implementation of the Datagrid Solutions Strategy. As part of the Datagrid Strategy, the Board aims to actively shape the future of developing and implementing digital solutions to help any company improve their operational set-up and succeed in the digital world. Datagrid Solutions Strategy is to offer a fundamentally different model to the one practised by previous generation IT firms: true in-cloud implementation of virtual machines managed in a highly standardised way, to ensure scalability without additional operational or implementation costs. We offer an additional level of support and expertise to more sophisticated businesses operating in the regulated sectors.
The Board ensures that strategic initiatives feed directly into one or more of the following fundamental ambitions:
To be simple to do business with; to be accessible across all channels; to be at all times customer oriented and inspire trust; and to achieve operational excellence; as well as agility, speed and innovation. The Board review and consider the various stakeholders when arriving at recommended business decisions consistent with the strategy.
 
Page 2

 
DATA GRID SOLUTIONS PLC
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


The Company strategy allows us to be competitive, flexible and resilient while also responding to a rapidly changing digital market situation. Examples of Board decision making during 2022 include:
• A review of the Company’s IT and accounting systems to ensure the company is fully set for business as the roll out of its new strategy matures.
• review of the company’s operational structure to ensure the organisational model remains fit for the future.
Employee Engagement
The company invests in training and coaching where it is of benefit to the employee and the Company. We aim to be a responsible employer in our approach to the pay and benefits of employees.
Business Relationships
The Board engages with a variety of stakeholders, including customers, and suppliers, to inform and enable balanced decisions that incorporate multiple viewpoints, whilst maintaining the Company’s Strategy. In making decisions the Board considers outcomes from engagements with stakeholders as well as the importance of maintaining the Company’s integrity and reputation.
Culture and values
The company’s culture is characterised by clear responsibility, mutual respect and trust. Lawful conduct and fair competition are integral to its business activities and an important condition for maintaining a reputation for high standards of business conduct securing long term success.
The company is focused on people, with both customers and employees being at the heart of its business. The company embraces diversity, flexibility, sustainability and continuous improvement throughout the organisation.
The Directors require management to ensure that all stakeholder interests are considered in the Company’s day to day management and operations and seek to understand the relative interests and priorities of the various stakeholders and to have regard to these in decision making. The Directors acknowledge, however, that not every decision will necessarily result in a positive outcome for all stakeholders. 
As a result of these activities, the Directors believe that they have demonstrated compliance with their legal duty under s.172 of the Companies Act 2006.
 


This report was approved by the board on 24 January 2025 and signed on its behalf.



D Kaganovich
Director

Page 3

 
DATA GRID SOLUTIONS PLC
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their report and the financial statements for the year ended 30 April 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company is that of providing IT services and investing in various financial instruments.

Directors

The directors who served during the year were:

O Bobylov 
D Kaganovich 

Principal risks and uncertainties

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

Page 4

 
DATA GRID SOLUTIONS PLC
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsSumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 January 2025 and signed on its behalf.
 





D Kaganovich
Director

Page 5

 
DATA GRID SOLUTIONS PLC
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATA GRID SOLUTIONS PLC
 

Opinion


We have audited the financial statements of Data Grid Solutions PLC (the 'Company') for the year ended 30 April 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 April 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
DATA GRID SOLUTIONS PLC
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATA GRID SOLUTIONS PLC (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
DATA GRID SOLUTIONS PLC
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATA GRID SOLUTIONS PLC (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
 
the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
the nature of the company including its management structure and control systems (including the opportunity for management to override such controls);
management’s incentives and opportunities for fraudulent manipulation of the financial statements including the company’s remuneration and bonus policies and performance targets; and 
the industry and environment in which it operates.
 
We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.
 
Based on this understanding we identified the following matters as being of significance to the entity:
 
laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation and distributable profits legislation; 
the timing of the recognition of commercial income;
compliance with legislation;
management bias in selecting accounting policies and determining estimates;
inappropriate journal entries;
manipulation of specific performance measures to meet remuneration targets; and
recoverability of debtors;
 
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
 
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: 
 
enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
enquiries with the same concerning any actual or potential litigation or claims;
discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud; 
inspection of relevant legal correspondence; 
Page 8

 
DATA GRID SOLUTIONS PLC
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DATA GRID SOLUTIONS PLC (CONTINUED)


assessment of matters reported to management and the result of the subsequent investigation;
obtaining an understanding of the relevant controls during the period;
obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to estimates such as valuation of fixed asset investments; depreciation of tangible fixed assets and amortisation of intangible fixed assets;
assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
reviewing the financial statements for compliance with the relevant disclosure requirements; 
performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
reviewing the minutes of Board meetings and correspondence with HMRC;
evaluating the underlying business reasons for any unusual transactions; and
considered the implementation of controls during the year.
 
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andrew Marks ACA (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

24 January 2025
Page 9

 
DATA GRID SOLUTIONS PLC
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
£
£


Turnover
41,507
-

Gross profit
41,507
-

Administrative expenses
(850,726)
(121,346)

Fair value movements
(36,409)
291,850

Operating (loss)/profit
(845,628)
170,504

Amounts written off investments
(522,861)
-

Interest receivable and similar income
661,864
771,392

Interest payable and similar expenses
(3,009,064)
(2,898,226)

Loss before tax
(3,715,689)
(1,956,330)

Loss for the financial year
(3,715,689)
(1,956,330)

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 15 to 27 form part of these financial statements.

Page 10

 
DATA GRID SOLUTIONS PLC
REGISTERED NUMBER: 10728804

BALANCE SHEET
AS AT 30 APRIL 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
1,676,991
739,859

Tangible assets
 12 
11,419
3,915

Investments
 13 
70,307,711
70,984,761

  
71,996,121
71,728,535

Current assets
  

Debtors: amounts falling due within one year
 14 
2,426,675
1,621,684

Bank current accounts
  
3,478,472
4,523,003

  
5,905,147
6,144,687

Creditors: amounts falling due within one year
 15 
(877,989)
(143,318)

Net current assets
  
 
 
5,027,158
 
 
6,001,369

Total assets less current liabilities
  
77,023,279
77,729,904

Creditors: amounts falling due after more than one year
 16 
(85,724,075)
(82,715,011)

  

Net liabilities
  
(8,700,796)
(4,985,107)


Capital and reserves
  

Called up share capital 
 18 
1,400,000
1,400,000

Profit and loss account
  
(10,100,796)
(6,385,107)

  
(8,700,796)
(4,985,107)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 January 2025.




D Kaganovich
Director

The notes on pages 15 to 27 form part of these financial statements.

Page 11

 
DATA GRID SOLUTIONS PLC
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 May 2022
1,400,000
(4,428,777)
(3,028,777)


Comprehensive income for the year

Loss for the year
-
(1,956,330)
(1,956,330)
Total comprehensive income for the year
-
(1,956,330)
(1,956,330)


Total transactions with owners
-
-
-



At 1 May 2023
1,400,000
(6,385,107)
(4,985,107)


Comprehensive income for the year

Loss for the year
-
(3,715,689)
(3,715,689)
Total comprehensive income for the year
-
(3,715,689)
(3,715,689)


Total transactions with owners
-
-
-


At 30 April 2024
1,400,000
(10,100,796)
(8,700,796)


The notes on pages 15 to 27 form part of these financial statements.

Page 12

 
DATA GRID SOLUTIONS PLC
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
£
£

Cash flows from operating activities

Loss for the financial year
(3,715,689)
(1,956,330)

Adjustments for:

Amortisation of intangible assets
39,872
-

Depreciation of tangible assets
4,228
799

Interest payable
3,009,064
2,898,226

Interest receivable
(661,862)
(771,392)

(Increase)/decrease in debtors
(188,439)
11,949

Increase in creditors
734,671
3,427

Net fair value losses/(gains) recognised in P&L
36,409
(291,849)

Foreign exchange
38,265
(53,067)

Accrued bond interest
-
(51,360)

Written off investments
522,861
-

Net cash generated from operating activities

(180,620)
(209,597)


Cash flows from investing activities

Purchase of intangible fixed assets
(977,004)
(739,859)

Purchase of tangible fixed assets
(11,732)
(4,714)

Purchase of unlisted and other investments
(6,387,202)
-

Sale of unlisted and other investments
6,512,027
-

Net cash from investing activities

(863,911)
(744,573)


Net (decrease) in cash and cash equivalents
(1,044,531)
(954,170)

Cash and cash equivalents at beginning of year
4,523,003
5,477,173

Cash and cash equivalents at the end of year
3,478,472
4,523,003


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,478,472
4,523,003

3,478,472
4,523,003


The notes on pages 15 to 27 form part of these financial statements.

Page 13

 
DATA GRID SOLUTIONS PLC
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024





At 1 May 2023
Cash flows
Other non-cash changes
At 30 April 2024
£

£

£

£

Cash at bank and in hand

4,523,003

(1,044,531)

-

3,478,472

Debt due after 1 year

82,715,011

-

3,009,064

85,724,075

Debt due within 1 year

-

-

-

-


87,238,014
(1,044,531)
3,009,064
89,202,547

The notes on pages 15 to 27 form part of these financial statements.

Page 14

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


General information

The company is a public limited company limited by shares, registered in England and Wales. The address of the registered office is 14th Floor, 33 Cavendish Square, London, W1G 0PW. 
The principal activity of the company is that of providing IT services and investing in various financial instruments.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have assessed the risk that the Company is not a going concern and have concluded that the Company has sufficient resources that will enable the Company to meet its liabilities as they fall due. The directors are committed to the growth of the company and are building a strategy to bring the company to profitability over the coming years. On this basis, the directors consider it is appropriate to use the going concern basis.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 15

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.4

Revenue

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:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Revenue from IT services is recognised based on the degree of completion of the project which is estimated based on the proportion of the expected costs which have been incurred.
Trustform Subscription revenue, including license and hosting fees, is recognised over the subscription term as the service is provided.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

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.

Page 16

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.8

Intangible assets

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.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.9

Tangible fixed assets

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:

Computer equipment
-
3 Years

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.

 
2.10

Valuation of investments

Fixed asset investments are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.11

Debtors

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.

 
2.12

Cash and cash equivalents

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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 17

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the
Page 18

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)

impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are
Page 19

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)

discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

A key accounting estimate is the fair value of the Promissory Notes which comprise £57.3 million (2023: £57.3 million) of the fixed asset investments and have been valued at the net present value of the amounts receivable on the maturity of the notes. The amount receivable has been discounted at a risk free interest rate of 0.5% which is considered appropriate as the recoverability risk on the notes is mitigated by options which allow the amount due to be offset against the company’s debt. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Comply Advantage data
1,677
-

Financial Operations
16,589
-

General IT
4,976
-

FinTech
12,165
-

TrustForm
6,100
-

41,507
-



5.


Operating (loss)/profit

The operating profit is stated after charging / (crediting):

2024
2023
£
£

Exchange differences
90,607
(168,727)

Page 20

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,500
15,500

Fees payable to the Company's auditors and its associates in respect of:

All other services
663
663

Taxation compliance services
1,000
1,000

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
205,975
83,638

Social security costs
21,410
16,495

Cost of defined contribution scheme
4,040
2,000

231,425
102,133


Included in the wages and salaries and social security costs are recharges from another company of £59,247 and £7,202, respectively.

The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
2
2



Administration
2
2

4
4

Page 21

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
69,166
26,667

69,166
26,667


There are no Key Management Personnel other than the directors.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
661,864
771,392

661,864
771,392


10.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
3,140,953
3,025,257

Gain on purchase of own debt
(131,889)
(127,031)

3,009,064
2,898,226

Page 22

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

11.


Intangible assets




Computer software

£



Cost


At 1 May 2023
739,859


Additions
977,004



At 30 April 2024

1,716,863



Amortisation


Charge for the year on owned assets
39,872



At 30 April 2024

39,872



Net book value



At 30 April 2024
1,676,991



At 30 April 2023
739,859

Computer equipment includes 2 different projects.
One project is a compliance management platform that helps companies verify and onboard new clients and entities, perform ongoing monitoring, and streamline KYC and AML workflows.
The second project is a suite of software solutions for small and medium sized financial services business that incudes order management tools, back office system, client portal software, data warehouse solutions and stock universe maintenance solutions.



Page 23

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

12.


Tangible fixed assets





Computer equipment

£



Cost or valuation


At 1 May 2023
4,714


Additions
11,732



At 30 April 2024

16,446



Depreciation


At 1 May 2023
799


Charge for the year on owned assets
4,228



At 30 April 2024

5,027



Net book value



At 30 April 2024
11,419



At 30 April 2023
3,915

Page 24

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

13.


Fixed asset investments





Other fixed asset investments

£



Cost or valuation


At 1 May 2023
70,984,761


Additions
6,387,202


Disposals
(6,934,344)


Revaluations
(36,409)


Unwinding of discounting
7,045



At 30 April 2024

70,408,255



Impairment


Charge for the period
100,544



At 30 April 2024

100,544



Net book value



At 30 April 2024
70,307,711

Promissory notes held are valued at their net present value based on the amount for redelivery. Bonds held were valued with reference to market transactions around the year end.

Page 25

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

14.


Debtors

2024
2023
£
£


Trade debtors
683,060
-

Amounts owed by group undertakings
11,875
6,803

Other debtors
46,044
22,574

Prepayments and accrued income
1,685,696
1,592,307

2,426,675
1,621,684



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
559,879
4,500

Other taxation and social security
2,010
767

Pension liability
300
300

Accruals and deferred income
315,800
137,751

877,989
143,318



16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bonds issued
85,724,075
82,715,011

85,724,075
82,715,011


On 12 June 2017, 100,000,000 zero-coupon bonds were issued at a 70% reference price unsecured. The bonds have an accrual yield rate of 3.57% and £100,000,000 is repayable on 12 June 2027. During the prior year the company purchased 4.2% of the issued bonds which have been offset against the liability.

Page 26

 
DATA GRID SOLUTIONS PLC
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

17.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
70,990,771
70,984,761




Financial assets measured at fair value through profit or loss comprise of unlisted bonds and promissory notes, held in fixed asset investments.


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,400,000 (2023 - 1,400,000) Ordinary shares of £1.00 each
1,400,000
1,400,000



19.


Related party transactions

A company where the director of the Company is also a director, owes £11,875 (2023: £6,803). During the 30 April 2024 the company paid expenses on behalf of this company totalling £5,072 (2023: £6,803)


20.


Controlling party

The parent company is Data Grid Holdings Limited, incorporated in the British Virgin Islands. The ultimate controlling party is Dmitry Kaganovich.

 
Page 27