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Registered number: 14251013


THE PENNY GROUP HOLDINGS LTD










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
THE PENNY GROUP HOLDINGS LTD
 
 
COMPANY INFORMATION


Directors
Clement Cowley 
Michael Elworthy 
Graeme Morrissey 
Adam Roberts 




Registered number
14251013



Registered office
1 Vincent Square

London

SW1P 2PN





 
THE PENNY GROUP HOLDINGS LTD
 

CONTENTS



Page
Group strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10 - 11
Company balance sheet
12
Consolidated statement of changes in equity
13
Company statement of changes in equity
14
Consolidated statement of cash flows
15 - 16
Notes to the financial statements
17 - 37


 
THE PENNY GROUP HOLDINGS LTD
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The Directors present their strategic report on the financial statements for the Penny Group Holdings Limited (“Company”) and its subsidiaries (“the Penny Group” or “the Group”) for the year ended 31 March 2024.
The Company’s principal activities are those of a holding company. The activities of its subsidiary undertakings include the provision of financial planning, insurance and mortgage broking services. 
The Penny Group’s objective is to deliver positive outcome and improve the lives of clients by removing complexity and stress from their financial affairs.  It achieves this by developing deeper understanding of client goals and aspirations for every stage of their life.

Business review
 
The Penny Group’s turnover has increased by 19% to £12.1m (2023: £10.2m) for the year. This is in line with the increase in Assets under Management (‘AUM’) from organic activities and market growth during the year to £950m (2023: £805m). Total AUM, including acquired AUM during the year, as at 31 March 2024 was £1,025m.
Profit before tax was £2.6m for the year (2023: £3.4m).  The decrease in profit was a reflection of additional investment back into the business to enhance operational capabilities, where administrative expenses have increased by 36% to £6m for the year (2023: £4.4m).
Net assets for the Penny Group were £5m (2023: £4.7m).
The Directors consider the results and financial position at 31 March 2024 to be satisfactory.

Principal risks and uncertainties
 
There are a variety of risks that exist in the markets that the Group operates in and there are a range of factors which may impact on the Group’s performance, including but not limited to current geopolitical and macroeconomic uncertainties, people risks and regulatory risks. The Group operate a risk management framework, and actively monitors and manages these uncertainties and risks.  

Financial key performance indicators
 
The Directors use key performance indicators to monitor the performance of the Group, these include AUM, revenue, profit and shareholders funds. 


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



................................................
Graeme Morrissey
Director

Date: 2 December 2024

Page 1

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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


select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,967,590 (2023 - £2,746,026).

As detailed in note 12 to the financial statements, the company paid a dividend of £1,694,660 during the year.

Directors

The directors who served during the year were:

Clement Cowley 
Michael Elworthy 
Graeme Morrissey 
Adam Roberts 

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 and the Group'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 and the Group's auditors are aware of that information.

Page 2

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Post balance sheet events

On 30th September 2024 the Penny Group Limited purchased 100% of the share capital in Whiting Financial Limited for £3.25m.

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





................................................
Adam Roberts
Director

Date: 2 December 2024

Page 3

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PENNY GROUP HOLDINGS LTD
 

Opinion


We have audited the financial statements of The Penny Group Holdings Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company 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 Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's profit 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 Group 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 Group's or the parent 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 4

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PENNY GROUP HOLDINGS LTD (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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Page 5

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PENNY GROUP HOLDINGS LTD (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PENNY GROUP HOLDINGS LTD (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 Group 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:

Discussions were held with, and  enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, health and safety and employment law.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries 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; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
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.


Page 7

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PENNY GROUP HOLDINGS LTD (CONTINUED)


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.





Mr Matthew Wyatt (Senior statutory auditor)
for and on behalf of
Wellers
Statutory Accountants
1 Vincent Square
London
SW1P 2PN

5 December 2024
Page 8

 
THE PENNY GROUP HOLDINGS LTD
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
12,112,659
10,177,211

Cost of sales
  
(3,104,464)
(2,162,729)

Gross profit
  
9,008,195
8,014,482

Administrative expenses
  
(6,033,232)
(4,415,871)

Operating profit
 5 
2,974,963
3,598,611

Interest receivable and similar income
 9 
17,287
10,704

Interest payable and similar expenses
 10 
(407,444)
(174,452)

Profit before taxation
  
2,584,806
3,434,863

Tax on profit
 11 
(617,216)
(688,837)

Profit for the financial year
  
1,967,590
2,746,026

  

Share based payments
  
17,288
2,639

Other comprehensive income for the year
  
17,288
2,639

Total comprehensive income for the year
  
1,984,878
2,748,665

Profit for the year attributable to:
  

Owners of the parent Company
  
1,967,590
2,746,026

  
1,967,590
2,746,026

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
1,984,878
2,748,665

  
1,984,878
2,748,665

The notes on pages 17 to 37 form part of these financial statements.

Page 9

 
THE PENNY GROUP HOLDINGS LTD
REGISTERED NUMBER: 14251013

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
                                                                                                                                     Note
£
£

Fixed assets
  

Intangible assets
 13 
7,896,751
6,448,694

Tangible assets
 14 
556,568
699,780

Investments
 15 
3,562,881
3,581,889

  
12,016,200
10,730,363

Current assets
  

Debtors: amounts falling due after more than one year
 16 
-
103,078

Debtors: amounts falling due within one year
 16 
1,333,745
1,485,679

Cash at bank and in hand
 17 
835,844
1,249,118

  
2,169,589
2,837,875

Creditors: amounts falling due within one year
 18 
(3,181,577)
(2,706,759)

Net current (liabilities)/assets
  
 
 
(1,011,988)
 
 
131,116

Total assets less current liabilities
  
11,004,212
10,861,479

Creditors: amounts falling due after more than one year
 19 
(5,891,329)
(6,062,980)

Provisions for liabilities
  

Deferred tax
 21 
(70,852)
(76,686)

Other provisions
 22 
(30,000)
-

  
 
 
(100,852)
 
 
(76,686)

Net assets
  
5,012,031
4,721,813


Capital and reserves
  

Called up share capital 
 23 
8
8

Other reserves
 25 
29,068
11,780

Group reconstruction reserve
 24 
3,522,211
3,522,211

Profit and loss account
  
1,460,744
1,187,814

  
5,012,031
4,721,813


Page 10

 
THE PENNY GROUP HOLDINGS LTD
REGISTERED NUMBER: 14251013
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 December 2024.




................................................
Adam Roberts
Director

The notes on pages 17 to 37 form part of these financial statements.

Page 11

 
THE PENNY GROUP HOLDINGS LTD
REGISTERED NUMBER: 14251013

COMPANY BALANCE SHEET
AS AT 31 MARCH 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Investments
 15 
8
8

  
8
8

Current assets
  

Debtors: amounts falling due after more than one year
 16 
-
99,227

Debtors: amounts falling due within one year
 16 
5,000,000
4,660,815

  
5,000,000
4,760,042

Total assets less current liabilities
  
 
 
5,000,008
 
 
4,760,050

  

Creditors: amounts falling due after more than one year
 19 
(5,000,000)
(4,760,042)

  

Net assets
  
8
8


Capital and reserves
  

Called up share capital 
 23 
8
8

Profit for the year
  
1,694,660
1,120,808

Other changes in the profit and loss account
  
(1,694,660)
(1,120,808)

  
8
8


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 December 2024.


................................................
Adam Roberts
Director

The notes on pages 17 to 37 form part of these financial statements.

Page 12

 
THE PENNY GROUP HOLDINGS LTD
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Other reserves
Group reconstruction reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 July 2022
8
9,141
3,522,211
-
3,531,360


Comprehensive income for the period

Profit for the period

-
-
-
2,746,026
2,746,026

Share based payments
-
2,639
-
-
2,639


Other comprehensive income for the period
-
2,639
-
-
2,639


Total comprehensive income for the period
-
2,639
-
2,746,026
2,748,665


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(1,558,212)
(1,558,212)


Total transactions with owners
-
-
-
(1,558,212)
(1,558,212)



At 1 April 2023
8
11,780
3,522,211
1,187,814
4,721,813


Comprehensive income for the year

Profit for the year

-
-
-
1,967,590
1,967,590

Share based payments
-
17,288
-
-
17,288


Other comprehensive income for the year
-
17,288
-
-
17,288


Total comprehensive income for the year
-
17,288
-
1,967,590
1,984,878


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(1,694,660)
(1,694,660)


Total transactions with owners
-
-
-
(1,694,660)
(1,694,660)


At 31 March 2024
8
29,068
3,522,211
1,460,744
5,012,031


The notes on pages 17 to 37 form part of these financial statements.

Page 13

 
THE PENNY GROUP HOLDINGS LTD
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2022
8
-
8


Comprehensive income for the period

Profit for the period
-
1,120,808
1,120,808


Other comprehensive income for the period
-
-
-


Total comprehensive income for the period
-
1,120,808
1,120,808


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,120,808)
(1,120,808)


Total transactions with owners
-
(1,120,808)
(1,120,808)



At 1 April 2023
8
-
8


Comprehensive income for the period

Profit for the year
-
1,694,660
1,694,660


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,694,660
1,694,660


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,694,660)
(1,694,660)


Total transactions with owners
-
(1,694,660)
(1,694,660)


At 31 March 2024
8
-
8


The notes on pages 17 to 37 form part of these financial statements.

Page 14

 
THE PENNY GROUP HOLDINGS LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit after tax for the financial year
1,967,590
2,746,026

Adjustments for:

P&L reclassification for dividends received
(466,128)
(272,778)

Amortisation of intangible assets
421,727
183,507

Depreciation of tangible assets
246,607
203,988

Loss on disposal of tangible assets
-
89,819

Interest paid
407,444
174,452

Interest received
(17,287)
(10,704)

Taxation charge
617,216
688,837

Decrease/(increase) in debtors
283,641
(939,204)

Decrease/(increase) in amounts owed by groups
-
(74,818)

Increase in creditors
9,183
393,911

Increase in provisions
47,288
2,638

Corporation tax paid
(1,089,884)
(829,806)

Net cash generated from operating activities

2,427,397
2,355,868


Cash flows from investing activities

Purchase of tangible fixed assets
(97,589)
(775,325)

Purchase of unlisted and other investments
(1,364,351)
(3,836,435)

Interest received
17,287
10,704

Dividends received
466,128
272,778

Cash on restructure
-
1,632,187

Net cash used in investing activities

(978,525)
(2,696,091)
Page 15

 
THE PENNY GROUP HOLDINGS LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


2024
2023

£
£



Cash flows from financing activities

New secured loans
239,958
3,322,004

Dividends paid
(1,694,660)
(1,558,211)

Interest paid
(407,444)
(174,452)

Net cash (used in)/ from financing activities
(1,862,146)
1,589,341

Net (decrease)/increase in cash and cash equivalents
(413,274)
1,249,118

Cash and cash equivalents at beginning of year
1,249,118
-

Cash and cash equivalents at the end of year
835,844
1,249,118


Cash and cash equivalents at the end of year comprise:

Cash At Bank And In Hand
835,844
1,249,118

835,844
1,249,118


The notes on pages 17 to 37 form part of these financial statements.

Page 16

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The Penny Group Holdings Ltd is a company, incorporated in the United Kingdom under the Companies Act. The address of the registered office is given on the Company Information page and this is also the company's principal place of business. 

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

Page 17

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group 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.

 
2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
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

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 18

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

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.

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 Group in independently administered funds.

 
2.9

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 19

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other 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. The useful life of these intangible assets was previously considered to be ten years and the estimate was changed in the prior year to twenty years.

Page 20

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.12

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:

Long-term leasehold property
-
Over the useful life of the lease
Fixtures and fittings
-
25%
Office equipment
-
25%

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.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

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.

 
2.15

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 Consolidated 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 Group's cash management.

 
2.16

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.

Page 21

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Group 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 Group's Balance sheet when the Group 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 Group'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.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently
Page 22

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 23

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as the Balance Sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The directors consider the key judgments to be:
Intangible fixed assets:
Intangible fixed assets are amortised over their useful economic life. Assessment of useful lives  are performed annually. In assessing the remaining life of the asset, future market conditions are taken into account.
Property, plant and equipment:
Property, plant and equipment are depreciated over their useful economic life taking into account, where appropriate, residual values. Assessment of useful lives and residual values are performed annually. In assessing the residual value, the remaining life of the asset, its projected disposal value and future market conditions are taken into account.
Revenue recognition:
The key judgments made by management in respect of revenue is the point at which revenue should be recognised. Management consider the underlying contract terms and conclude upon the most appropriate point of the cycle at which to recognise revenue based upon these terms and in particular the transfer of risks and rewards of ownership.
 


4.


Turnover

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


2024
2023
£
£

Commission/ Fees
10,989,435
8,918,805

Other Income
657,096
985,628

Dividends Received
466,128
272,778

12,112,659
10,177,211


All turnover arose within the United Kingdom.

Page 24

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
631,562
581,268

Share-based payment
17,288
2,639


6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
19,380
-

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

All non-audit services not included above
12,720
49,040


7.


Employees

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


Group
Group
2024
2023
£
£


Wages and salaries
3,546,765
2,694,304

Social security costs
508,692
399,980

Cost of defined contribution scheme
330,832
262,804

4,386,289
3,357,088


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
4
4
4
4



Employees
69
62
-
-

73
66
4
4

Page 25

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
50,280
47,400

Costs of defined contribution schemes
37,500
16,000

87,780
63,400



9.


Interest receivable

2024
2023
£
£


Other interest receivable
17,287
10,704

17,287
10,704


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
407,444
152,712

Other loan interest payable
-
21,740

407,444
174,452

Page 26

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
691,759
614,393

Adjustments in respect of previous periods
(68,709)
-


623,050
614,393


Total current tax
623,050
614,393

Deferred tax


Origination and reversal of timing differences
(5,834)
74,444

Total deferred tax
(5,834)
74,444


Tax on profit
617,216
688,837

Factors affecting tax charge for the year/period

The tax assessed for the year/period is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,584,806
3,434,863


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
646,202
652,624

Effects of:


Non-tax deductible amortisation of goodwill and impairment
105,432
45,484

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
19,566
(9,103)

Capital allowances for year/period in excess of depreciation
37,649
(22,784)

Adjustments to tax charge in respect of prior periods
(68,709)
-

Short-term timing difference leading to an increase (decrease) in taxation
(5,834)
74,444

Non-taxable income
(116,532)
(51,828)

Marginal relief
(558)
-

Total tax charge for the year/period
617,216
688,837

Page 27

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
11.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Dividends
1,694,660
1,558,212

1,694,660
1,558,212


13.


Intangible assets

Group





Goodwill

£



Cost


At 1 April 2023
7,572,124


Additions
1,869,784



At 31 March 2024

9,441,908



Amortisation


At 1 April 2023
1,123,430


Charge for the year on owned assets
421,727



At 31 March 2024

1,545,157



Net book value



At 31 March 2024
7,896,751



At 31 March 2023
6,448,694

The Penny Group Limited acquired 100% of the ordinary share capital in Roberts Financial Consultancy Limited for a consideration £2,545,067.


Page 28

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
           13.Intangible assets (continued)



14.


Tangible fixed assets

Group






Long-term leasehold property
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 April 2023
546,434
282,687
357,665
1,186,786


Additions
6,828
47,966
48,601
103,395



At 31 March 2024

553,262
330,653
406,266
1,290,181



Depreciation


At 1 April 2023
155,274
104,476
227,256
487,006


Charge for the year on owned assets
126,294
66,352
53,961
246,607



At 31 March 2024

281,568
170,828
281,217
733,613



Net book value



At 31 March 2024
271,694
159,825
125,049
556,568



At 31 March 2023
391,160
178,211
130,409
699,780

Page 29

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Fixed asset investments

Group





Unlisted investments

£



Cost or valuation


At 1 April 2023
3,581,889


Additions
11,699


Disposals
(30,707)



At 31 March 2024
3,562,881




Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2023
8



At 31 March 2024
8





Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

The Penny Group Ltd
1 Vincent Square, London, United Kingdom, SW1P 2PN
Ordinary
100%

Page 30

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Bright Blue Wealth Management Ltd
1 Vincent Square, London, United Kingdom, SW1P 2PN
Ordinary
100%
Bright Blue Wealth Limited
1 Vincent Square, London, United Kingdom, SW1P 2PN
Ordinary
100%
Roberts Financial Consulting Limited
1 Vincent Square, London, United Kingdom, SW1P 2PN
Ordinary
100%
Ridgewood Finance Limited
1 Vincent Square, London, United Kingdom, SW1P 2PN
Ordinary
100%
Cectrad Limited
1 Vincent Square, London, United Kingdom, SW1P 2PN
Ordinary
100%
Adam Roberts Financial Consulting Limited
Tenaya, Bicester Road, Launton, Oxfordshire, OX26 5DP
Ordinary
100%
Mike Elworthy Financial Planning Limited
1 Vincent Square, London, United Kingdom, SW1P 2PN
Ordinary
100%
Graeme Morrissey Limited
5th Floor 7 Birchin Lane, London, EC3V 9BW
Ordinary
100%
The Penny Group London LLP
1 Vincent Square, London, United Kingdom, SW1P 2PN
100%

The following subsidiary companies also listed above are exempt from audit by virtue of Section 479A of the Companies Act 2006. In accordance with Section 479C of the Companies Act 2006, The Penny Group Holdings Limited has provided guarantees over the liabilities of these subsidiaries,
Entity - Registered Number
The Penny Group Ltd - 11103804
Bright Blue Wealth Management Limited - 13039393
Bright Blue Wealth Limited - 07804104
Roberts Financial Consultancy Limited - 06851743 
Ridgewood Finance Limited - 05240261

Page 31

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Other debtors
-
3,850
-
-

Prepayments and accrued income
-
99,228
-
99,227

-
103,078
-
99,227


Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Due within one year

Trade debtors
619,558
1,007,193
-
-

Amounts owed by group undertakings
-
-
4,978,952
4,452,977

Other debtors
21,943
10,559
-
-

Prepayments and accrued income
692,244
467,927
21,048
207,838

1,333,745
1,485,679
5,000,000
4,660,815


The restatement of debtors has arisen in respect to the recognition of the loan balance previously recognised in a subsidiary entity.


17.


Cash and cash equivalents

Group
Group
2024
2023
£
£

Cash at bank and in hand
835,844
1,249,118

835,844
1,249,118


Page 32

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Creditors: Amounts falling due within one year

Group

Group
As restated
2024
2023
£
£

Trade creditors
206,463
184,263

Corporation tax
274,925
634,480

Other taxation and social security
174,076
122,308

Other creditors
2,027,653
1,355,831

Accruals and deferred income
498,460
409,877

3,181,577
2,706,759


The restatement of creditors has arisen in respect to the recognition of the loan balance previously
recognised in a subsidiary entity.


19.


Creditors: Amounts falling due after more than one year

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Bank loans
5,000,000
4,760,042
5,000,000
4,760,042

Other creditors
766,667
1,020,000
-
-

Accruals and deferred income
124,662
282,938
-
-

5,891,329
6,062,980
5,000,000
4,760,042


The restatement of creditors has arisen in respect to the recognition of the loan balance previously
recognised in a subsidiary entity.

Page 33

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Loans


Analysis of the maturity of loans is given below:


Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Amounts falling due 2-5 years

Bank loans
5,000,000
4,760,042
5,000,000
4,760,042


5,000,000
4,760,042
5,000,000
4,760,042


Bank loans represent a loan draw down in August 2022 that is scheduled to be repaid in full in March 2027. The loans bears interest at the base rate plus a variable margin rate of 3% - 3.75%.
There is a fixed and floating charge in respect of the facility over the assets and intellectual property of the Company.
The restatement of the liability has arisen in respect to the recognition of the loan balance previously recognised in a subsidiary entity.


21.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(76,686)
-


Charged to profit or loss
5,834
(73,548)


Arising on business combinations
-
(3,138)



At end of year
(70,852)
(76,686)

Page 34

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
21.Deferred taxation (continued)

Company








At end of year
-
-
Group
Group
2024
2023
£
£

Accelerated capital allowances
(70,852)
(76,686)

(70,852)
(76,686)


22.


Provisions


Group



Provision

£





Charged to profit or loss
30,000



At 31 March 2024
30,000

The provision is in respect of a clawback of income and represents the expected value of distribution allowances reclaimable by product providers in respect of policies cancelled at any time in the indemnity period. In determining the provision, management of the Group considered a number of factors including the remaining duration of the indemnity period, the likelihood of the policy lapsing and previous experience of such cancellations. The key input into the accounting estimate is in relation to the rate at which policies will lapse.
 


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



40,000 (2023 - 40,000) Ordinary shares of £0.0001 each
4
4
10,000 (2023 - 10,000) Ordinary A shares of £0.0001 each
1
1
10,000 (2023 - 10,000) Ordinary B shares of £0.0001 each
1
1
10,000 (2023 - 10,000) Ordinary C shares of £0.0001 each
1
1
10,000 (2023 - 10,000) Ordinary D shares of £0.0001 each
1
1

8

8
Page 35

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.Share capital (continued)




24.


Reserves

Other reserves

Other reserves represents the provision for share based payments. 

Group Reconstruction Reserve

The group reconstruction reserve was created on consolidation following a group restructure.


25.


Share-based payments

The company established a share-option schemes in April 2021 for the benefit of certain employees.
The options will vest on the third anniversary of the date of the grants unless, specific conditions are not met as agreed contractually. The shares are E ordinary shares with a nominal value of £0.0001 each. 
The exercise price for 530 shares granted in July 2023 was £137.03 per share. These were the estimated value of the company's shares at the time of grant. The fair value has been recognised in the profit and loss as a debit with a corresponding entry to other reserves.

Weighted average exercise price (pence)
2024
Number
2024
Weighted average exercise price
(pence)
2023
Number
2023

Outstanding at the beginning of the year

102.34

900

85.78
 
900
 
Granted during the year

137.03

530

123.04
 
400
 
Forfeited during the year


-

(85.78)
 
(400)
 
Outstanding at the end of the year
115.20

1,430

102.34
 
900
 



2024
2023
£
£


Equity-settled schemes
29,068
11,780

29,068
11,780

Page 36

 
THE PENNY GROUP HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

26.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £330,832 (2023: £262,804). Contributions totaling £31,496 (2023 - £26,423) were payable to the fund at the balance sheet date and are included in creditors 


27.


Commitments under operating leases

At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
394,583
336,375

Later than 1 year and not later than 5 years
757,457
966,958

1,152,040
1,303,333

28.


Related party transactions

The company have taken advantage of the exemption under FRS102 section 33 paragraph 1a and therefore have not reported the related party transactions or balances of companies within the group.


29.


Controlling party

There is no ultimate controlling party.

Page 37