Caseware UK (AP4) 2023.0.135 2023.0.135 M Carroll10.22025-01-23false2022-01-01false12023-06-30110910400.19 11091040 2023-06-30 11091040 2022-01-01 2023-06-30 11091040 2021-01-01 2021-12-31 11091040 2021-12-31 11091040 c:Director1 2022-01-01 2023-06-30 11091040 d:PlantMachinery 2022-01-01 2023-06-30 11091040 d:FurnitureFittings 2022-01-01 2023-06-30 11091040 d:ComputerEquipment 2022-01-01 2023-06-30 11091040 d:ComputerEquipment 2023-06-30 11091040 d:ComputerEquipment 2021-12-31 11091040 d:ComputerEquipment 2021-01-01 11091040 d:OtherPropertyPlantEquipment 2022-01-01 2023-06-30 11091040 d:PatentsTrademarksLicencesConcessionsSimilar 2022-01-01 2023-06-30 11091040 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-01-01 2023-06-30 11091040 d:Goodwill 2022-01-01 2023-06-30 11091040 d:Goodwill 2023-06-30 11091040 d:CurrentFinancialInstruments 2023-06-30 11091040 d:CurrentFinancialInstruments 2021-12-31 11091040 d:ShareCapital 2023-06-30 11091040 d:ShareCapital 2021-12-31 11091040 d:SharePremium 2022-01-01 2023-06-30 11091040 d:SharePremium 2023-06-30 11091040 d:SharePremium 2021-12-31 11091040 d:CapitalRedemptionReserve 2022-01-01 2023-06-30 11091040 d:CapitalRedemptionReserve 2023-06-30 11091040 d:CapitalRedemptionReserve 2021-12-31 11091040 d:RetainedEarningsAccumulatedLosses 2022-01-01 2023-06-30 11091040 d:RetainedEarningsAccumulatedLosses 2023-06-30 11091040 d:RetainedEarningsAccumulatedLosses 2021-12-31 11091040 c:OrdinaryShareClass1 2022-01-01 2023-06-30 11091040 c:OrdinaryShareClass1 2021-01-01 2021-12-31 11091040 c:OrdinaryShareClass1 2023-06-30 11091040 c:OrdinaryShareClass1 2021-12-31 11091040 c:OrdinaryShareClass2 2022-01-01 2023-06-30 11091040 c:OrdinaryShareClass2 2021-01-01 2021-12-31 11091040 c:OrdinaryShareClass2 2023-06-30 11091040 c:OrdinaryShareClass2 2021-12-31 11091040 c:FullIFRS 2022-01-01 2023-06-30 11091040 c:Audited 2022-01-01 2023-06-30 11091040 c:FullAccounts 2022-01-01 2023-06-30 11091040 c:PrivateLimitedCompanyLtd 2022-01-01 2023-06-30 11091040 1 2023-06-30 11091040 1 2021-12-31 11091040 1 2022-01-01 2023-06-30 11091040 c:OrdinaryShareClass1 2021-01-01 11091040 c:OrdinaryShareClass2 2021-01-01 11091040 d:InternallyGeneratedIntangibleAssets 2022-01-01 2023-06-30 11091040 d:Goodwill d:ExternallyAcquiredIntangibleAssets 2022-01-01 2023-06-30 11091040 33 2022-01-01 2023-06-30 11091040 f:PoundSterling 2022-01-01 2023-06-30 iso4217:GBP xbrli:pure xbrli:shares
Registered number: 11091040














          Monek Group Limited
          Financial statements
          For the Period Ended 30 June 2023














         img09a4.png

 
Monek Group Limited
Registered number: 11091040
 
 
Consolidated Balance Sheet
As at 30 June 2023

30 June
31 December
2023
2021
Note
£
£


Assets

Non-current assets
  

Property, plant and equipment
 7 
389,801
360,983

Intangible assets
 8 
15,747,232
1,705,729

Other non-current investments
 10 
192,370
-

Trade investments
  
-
96,185

  
16,329,403
2,162,897

Current assets
  

Inventories
 11 
14,822
27,720

Trade and other receivables
 12 
1,025,570
480,310

Cash and cash equivalents
  
213,532
826,698


  

1,253,924
1,334,728

Total assets

  

17,583,327
3,497,625

Liabilities

Non-current liabilities
  

Loans and borrowings
 14 
175,086
346,420

Deferred tax liability
  
457,000
335,000

  
632,086
681,420

Current liabilities
  

Trade and other liabilities
 13 
788,377
273,579

Loans and borrowings
 14 
111,741
119,455

  
900,118
393,034

Total liabilities
  
1,532,204
1,074,454

Net assets
  
16,051,123
2,423,171
Page 1

 
Monek Group Limited
Registered number: 11091040
 
 
Consolidated Balance Sheet (continued)
As at 30 June 2023

30 June
31 December
2023
2021
Note
£
£


Equity
 16 

Share capital
 15 
881,173
672,876

Share premium reserve
  
14,312,702
193,333

Capital redemption reserve
  
25
25

Retained earnings
  
857,223
1,556,937

  
16,051,123
2,423,171

  

Total equity
  
16,051,123
2,423,171

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
Director

The notes on pages 5 to 33 form part of these financial statements.

Page 2

 
Monek Group Limited
Registered number: 11091040
 
 
Company Balance Sheet
As at 30 June 2023

30 June
31 December
2023
2021
Note
£
£

Assets

Non-current assets
  

Property, plant and equipment
 7 
183,333
-

Intangible assets
 8 
1,200,000
-

Other non-current investments
 10 
13,188,438
179,262

Trade investments
  
-
96,185

  
14,571,771
275,447

Current assets
  

Trade and other receivables
 12 
539,475
207,738

Cash and cash equivalents
  
2,555
383,147

  
542,030
590,885

Total assets

  

15,113,801
866,332

Liabilities

Net assets
  
15,113,801
866,332


Equity
 16 

Share capital
 15 
881,173
672,876

Share premium reserve
  
14,312,702
193,333

Capital redemption reserve
  
25
25

Retained earnings
  
(80,099)
98

Total equity
  
15,113,801
866,332

Page 3

 
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
Director

Page 4

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

1.Accounting policies

 
1.1

Basis of consolidation

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.

Page 5

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

1.Accounting policies (continued)


1.2

Going concern

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.

  
1.3

Business combinations

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
Page 6

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

1.Accounting policies (continued)


1.3
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.

 
1.4

Goodwill

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.

Page 7

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

1.Accounting policies (continued)

 
1.5

Revenue

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.

  
1.6

Leasing

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 as a lessee

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.

Page 8

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

1.Accounting policies (continued)


1.6
Leasing (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.


1.7

Employee benefits

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.

 
1.8

Taxation



Income tax expense represents the sum of the tax currently payable and deferred tax.



Page 9

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

1.Accounting policies (continued)


1.8
Taxation (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.

 
1.9

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:

Plant and machinery
33% straight line
Fixtures and fittings
33% straight line
Hardware
20% straight line
Right-of-use assets
over the term of the lease

 
1.10

Intangible assets


(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.

Intellectual property
10% straight line
Development expenditure
10% straight line

Page 10

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

1.Accounting policies (continued)


1.10
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.

 
1.11

Inventories

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.

 
1.12

Financial instruments

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
Page 11

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

1.Accounting policies (continued)


1.12
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.


2.


Reporting entity

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.


3.


Basis of preparation

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.


3.1 Basis of measurement

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.


Items

Measurement basis


Intangible assets acquired in a business combination
Fair value

Page 12

 
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)


4.


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.


5.


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
Page 13

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

5.Accounting estimates and judgements (continued)


5.1  (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.

Page 14

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

6.


Employee benefit expenses

Group


18 month period ended
30 June
12 month period ended
31 December
2023
2021
£
£

Wages and salaries
1,012,755
237,937

National insurance
85,932
22,083

Defined contribution pension cost
38,397
11,773

1,137,084
271,793


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
2023
2021
No.
No.

Sales
3
4

Operations
11
9

Administration
1
1

Directors
1
1

16
15

Page 15

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

7.


Property, plant and equipment


Group







Plant and machinery
Fixtures and fittings
Office equipment
Hardware
Right-of-use assets
Total

£
£
£
£
£
£



Cost








At 1 January 2021
79,355
109,837
-
-
135,398
324,590


Additions
-
35,751
-
-
287,421
323,172



At 31 December 2021
79,355
145,588
-
-
422,819
647,762


Additions
-
33,048
-
200,000
-
233,048


Acquired through business combinations
-
-
3,582
8,603
-
12,185



At 30 June 2023
79,355
178,636
3,582
208,603
422,819
892,995

Page 16

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

7.Property, plant and equipment (continued)


Plant and machinery
Fixtures and fittings
Office equipment
Hardware
Right-of-use assets
Total

£
£
£
£
£
£



Accumulated depreciation and impairment








At 1 January 2021
71,583
88,393
-
-
52,143
212,119


Charge owned for the period
5,396
16,410
-
-
-
21,806


Charged financed for the period
-
-
-
-
52,854
52,854



At 31 December 2021
76,979
104,803
-
-
104,997
286,779


Charge owned for the period
2,376
37,977
358
18,691
-
59,402


Charged financed for the period
-
-
-
-
147,210
147,210


Acquired through business combinations
-
-
3,224
6,579
-
9,803



At 30 June 2023
79,355
142,780
3,582
25,270
252,207
503,194



Net book value


At 1 January 2021
7,772
21,444
-
-
83,255
112,471


At 31 December 2021
2,376
40,785
-
-
317,822
360,983


At 30 June 2023
-
35,856
-
183,333
170,612
389,801


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:

30 June 2023
31 December 2021
£
£


Property, plant and equipment owned
219,189
43,161

Right-of-use assets, excluding investment property
170,612
317,822

389,801
360,983

Page 17

 
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

30 June 2023
31 December 2021
£
£

Property
153,130
254,380

Motor vehicles
17,482
63,442

170,612
317,822

Depreciation charge for the period ended

30 June 2023
31 December 2021
£
£

Property
101,250
30,096

Motor vehicles
45,960
22,758

147,210
52,854

Additions to right-of-use assets

30 June 2023
31 December 2021
£
£

Additions to right-of-use assets
-
287,421

Page 18

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

Company







Hardware

£



Cost



At 1 January 2021
-


Additions
200,000



At 30 June 2023
200,000


Hardware

£



Accumulated depreciation and impairment



At 1 January 2021
-


Charge owned for the period
16,667



At 30 June 2023
16,667



Net book value


At 1 January 2021
-


At 31 December 2021
-


At 30 June 2023
183,333

Page 19

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

8.


Intangible assets

Group







Goodwill
Development expenditure
Intellectual property
Negative goodwill
Total

£
£
£
£
£



Cost







At 1 January 2021
-
1,474,485
800,182
(850,685)
1,423,982


Additions - internal
-
601,723
-
-
601,723



At 31 December 2021
-
2,076,208
800,182
(850,685)
2,025,705


Additions - external
1,200,000
-
-
-
1,200,000


Additions - internal
-
894,126
-
-
894,126


Acquired through business combinations
11,456,771
1,124,887
-
-
12,581,658



At 30 June 2023
12,656,771
4,095,221
800,182
(850,685)
16,701,489


Goodwill
Development expenditure
Intellectual property
Negative goodwill
Total

£
£
£
£
£



Accumulated amortisation and impairment







At 1 January 2021
-
193,821
582,786
(651,206)
125,401


Charge for the year
-
176,658
-
-
176,658


Impairment charge
-
-
217,396
(199,479)
17,917



At 31 December 2021
-
370,479
800,182
(850,685)
319,976


Charge for the period
-
472,849
-
-
472,849


Acquired through business combinations
-
161,432
-
-
161,432


At 30 June 2023
-
1,004,760
800,182
(850,685)
954,257



Net book value


At 1 January 2021
-
1,280,664
217,396
(199,479)
1,298,581


At 31 December 2021
-
1,705,729
-
-
1,705,729


At 30 June 2023
12,656,771
3,090,461
-
-
15,747,232

Page 20

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
Company







Goodwill

£



Cost



Additions - external
1,200,000



At 30 June 2023
1,200,000


Goodwill

£



Accumulated amortisation and impairment




Net book value


At 30 June 2023
1,200,000


9.


Subsidiaries

Details of the Group's material subsidiaries at the end of the reporting period are as follows:

Name of subsidiary

Principal activity
Place of incorporation and operation
Proportion of ownership interest and voting power held by the Group (%)



2023
2021








1Monek Limited

Provision of credit card processing to business via IP connectivity

England and Wales
 
100

100

2Monek Merchant Services Limited

Authorised payment institution

England and Wales
 
100

100

3Secure Hosting Limited

Dormant company

England and Wales
 
100

100

4Monek Data Services Limited

Provision of information technology consultancy

England and Wales
 
100

2


Page 21

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

10.

Other non-current investments


Group

30 June
31 December
2023
2021
Note
£
£

Investments in subsidiary companies
 9 
192,370
-

  
192,370
-


Company

30 June
31 December
2023
2021
Note
£
£

Investments in subsidiary companies
 9 
13,188,438
179,262

  
13,188,438
179,262


11.


Inventories

Group


30 June
31 December
2023
2021
£
£


Finished goods and goods for resale
14,822
27,720

14,822
27,720

Page 22

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

12.


Trade and other receivables



Group

30 June
31 December
2023
2021
£
£


Trade receivables
419,717
221,094

Less: provision for impairment of trade receivables
(128,404)
-

Trade receivables - net
291,313
221,094

Prepayments and accrued income
135,348
57,189

Unpaid share capital
-
38

Other receivables
598,909
201,989

Total trade and other receivables
1,025,570
480,310

Total current portion

(1,025,570)
(480,310)

The carrying value of trade and other receivables classified as loans and receivables approximates fair value.


Company

30 June
31 December
2023
2021
£
£


Receivables from related parties
287,880
207,700

Unpaid share capital
-
38

Other receivables
251,595
-

Total trade and other receivables
539,475
207,738

Total current portion
(539,475)
(207,738)

Page 23

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

13.


Trade and other payables



Group

30 June
31 December
2023
2021
£
£


Trade payables
224,998
69,620

Other payables
243,020
30,238

Accruals
135,247
64,470

Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
603,265
164,328

Other payables - tax and social security payments
174,923
49,001

Deferred income
10,189
60,250

Total trade and other payables
788,377
273,579

Less: current portion - trade payables
(224,998)
(69,620)

Less: current portion - other payables
(417,943)
(79,239)

Less: current portion - accruals
(135,247)
(64,470)

Less: current portion - deferred income
(10,189)
(60,250)

Total current portion
(788,377)
(273,579)

Total non-current position
-
-

The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.

Page 24

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

14.


Loans and borrowings


Group

30 June
31 December
2023
2021
£
£

Non-current

Bank loans - secured
73,402
125,000

Lease liabilities
101,684
221,420

175,086
346,420

Current

Bank loans - secured
35,962
25,000

Lease liabilities
75,779
94,455

111,741
119,455

Total loans and borrowings
286,827
465,875

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.

Page 25

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023
15.


Share capital

Authorised

30 June
30 June
31 December
31 December
2023
2023
2021
2021
Number
£
Number
£

Shares treated as equity
A Ordinary shares of £0.01 each

86,283,362

862,834

65,831,338
 
658,313
 
B Ordinary shares of £0.01 each

1,836,478

18,365

1,456,250
 
14,563
 
88,119,840

881,199

67,287,588
 
672,876
 

Issued and fully paid

30 June
30 June
31 December
31 December
2023
2023
2021
2021
Number
£
Number
£

A Ordinary shares of £0.01 each

At 1 January

65,831,338

658,313

2,275,000
 
22,750
 
Shares issued

20,452,024

204,520

63,556,338
 
635,563
 
Rounding for share price of £0.01
-
1
-
-
At 30 June
86,283,362

862,834

65,831,338
 
658,313
 

Page 26

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

15.Share capital (continued)

30 June
30 June
31 December
31 December
2023
2023
2021
2021
Number
£
Number
£

B Ordinary shares of £0.01 each

At 1 January

1,456,250

14,563

222,500
 
2,225
 
Shares issued

377,728

3,777

1,233,750
 
12,338
 
Correction for shares held in Treasury
2,500
25
-
-
At 30 June
1,836,478

18,365

1,456,250
 
14,563
 

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.

Page 27

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

16.


Reserves


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.


17.


Leases


Group




(i) Leases as a lessee



The Group leases motor vehicles and property from which it operates its business.


Lease liabilities are due as follows:

30 June
31 December
2023
2021
£
£

Contractual undiscounted cash flows due

Not later than one year
94,455
45,843

Between one year and five years
221,420
37,271

315,875
83,114


Lease liabilities included in the Consolidated Balance Sheet at 30 June
177,463
315,875


Non-current
101,684
221,420

Current
75,779
94,455

Page 28

 
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:


2023
2021
£
£

Interest expense on lease liabilities
4,800
3,184


18.


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.


Carrying amount
30 June 2023
Note
Amortised cost
Total


        £
        £

Financial assets not measured at fair value


  




Trade and other receivables

 12 

1,025,570

1,025,570

Cash and cash equivalents

  

213,532

213,532



  


1,239,102
1,239,102
Financial liabilities not measured at fair value


  




Secured bank loans

 14 

(109,364)

(109,364)

Financial lease liabilities

 14 

(177,463)

(177,463)

Trade payables

 13 

(788,377)

(788,377)


  


(1,075,204)
(1,075,204)

Page 29

 
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)


Carrying amount
31 December 2021
Note
Amortised cost
Total


        £
        £

Financial assets not measured at fair value


  




Trade and other receivables

 12 

480,310

480,310

Cash and cash equivalents

  

826,698

826,698



  


1,307,008
1,307,008
Financial liabilities not measured at fair value


  




Secured bank loans

 14 

(150,000)

(150,000)

Financial lease liabilities

 14 

(315,875)

(315,875)

Trade payables

 13 

(273,579)

(273,579)


  


(739,454)
(739,454)



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.

Page 30

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

19.


Business combinations during the period

19.1 Subsidiaries acquired


Name
Principal activity
Date of acquisition
Proportion of voting equity interests acquired
Consideration transferred




%
£


Monek Data Services Limited ('MDS')

Provision of information technology consultancy

20/05/22

100

12,652,666






12,652,666

19.2 Consideration transferred


MDS
        £


Consideration shares issued

12,652,666


12,652,666

19.3 Assets acquired and liabilities recognised at the date of acquisition



MDS
Total
        £
        £
Non-current assets




Property, plant and equipment

2,382

2,382

Intangible assets

821,317

821,317

Current assets




Cash and cash equivalents

111,410

111,410

Trade and other receivables

76,874

76,874

Current liabilities




Trade and other liabilities

(24,869)

(24,869)


987,114
987,114

Page 31

 
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



MDS
Total
        £
        £
Consideration transferred

12,652,666

12,652,666

Fair value of identifiable net assets acquired

(1,195,895)

(1,195,895)

Goodwill arising on acquisition


11,456,771
11,456,771


19.5 Net cash outflow on acquisition

30 June
2023
£


Consideration paid in cash
-

Less: cash and cash equivalent balances acquired
(111,410)

(111,410)


20.


Capital management

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:

Page 32

 
Monek Group Limited
 
 
 
Notes to the Consolidated Financial Statements
For the Period Ended 30 June 2023

20.Capital management (continued)

30 June
31 December
2023
2021
£
£


Debt
109,364
150,000

Cash and cash equivalents 
(213,532)
(826,698)

Net debt
(104,168)
(676,698)


Capital and reserves
16,051,123
2,423,171

Total equity
16,051,123
2,423,171

Net debt to total equity ratio
(1)%
(28)%

The Group has honoured its covenant obligations.


21.
Controlling Party

At 30 June 2023, the Directors considered there to be no ultimate controlling party.



22.


Auditors' information

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. 

Page 33