Company Registration No. 08731306 (England and Wales)
Appliance Book Ltd
Annual Accounts
for the year ended 31 March 2024
Appliance Book Ltd
Company Information
for the year ended 31 March 2024
Directors
Conectid Limited
Michalakis Christofi
Secretary
Conectid Limited
Company Number
08731306 (England and Wales)
Registered Office
Conectid Group
400 Thames Valley Park Drive
Reading
Berkshire
RG6 1PT
England
Appliance Book Ltd
Statement of financial position
as at 31 March 2024
Intangible assets
1
73,254
Tangible assets
115,962
148,820
Cash at bank and in hand
52,045
13,257
Creditors: amounts falling due within one year
(242,679)
(1,214,120)
Net current assets
621,635
503,624
Total assets less current liabilities
737,598
725,698
Creditors: amounts falling due after more than one year
(250,000)
(324,903)
Provisions for liabilities
Other provisions
(225,000)
(175,000)
Net assets
262,598
225,795
Called up share capital
150,000
150,000
Share premium
50,000
50,000
Profit and loss account
62,598
25,795
Shareholders' funds
262,598
225,795
For the year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 31 December 2024 and were signed on its behalf by
Conectid Limited
Director
Company Registration No. 08731306
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
Appliance Book Ltd is a private company, limited by shares, registered in England and Wales, registration number 08731306. The registered office and principal place of business is Conectid Group, 400 Thames Valley Park Drive, Reading, Berkshire, RG6 1PT, England.
2
Compliance with accounting standards
The financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A: Small Entities ("FRS 102") and the Companies Act 2006. The Company has applied the small companies regime under Section 1A of FRS 102 and Part 15 of the Companies Act 2006. No material departures from these standards occurred during the preparation of these financial statements. Under the small entities' regime, certain disclosures otherwise required by full FRS 102 have been omitted. The financial statements are prepared under the historical cost convention, except where FRS 102 requires fair value measurement for specific assets or liabilities.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
3.1. Basis of preparation
The financial statements are prepared under the historical cost convention, with fixed assets maintained at their original purchase price or production cost, subject only to depreciation, amortisation, and any necessary impairment adjustments. No revaluations were undertaken during the reporting period. Any references to revaluation within these statements reflect the Company's general policy framework under FRS 102 rather than actual revaluations in the current year.
3.2. Presentation currency
The Company presents these financial statements in pounds sterling (£), its functional and presentational currency. Foreign currency transactions are translated using spot exchange rates at the transaction date. At period end, the Company retranslates foreign currency monetary items using the closing rate. For non-monetary items, the Company uses historical exchange rates for cost-based measurements and the rate at fair value determination for fair value measurements. The Company manages currency exposure by matching payables and receivables in the same currency where possible.
The Company recognizes turnover at the fair value of consideration received or receivable, excluding discounts, rebates, value-added tax, and other sales taxes. For goods sold, revenue recognition occurs upon delivery when risks and rewards of ownership transfer to customers. For services rendered, the Company recognizes revenue by reference to the contract's completion stage, measured by comparing costs incurred to total estimated contract costs.
3.4. Tangible fixed assets policy
The Company states tangible fixed assets at cost less accumulated depreciation and any impairment losses. Cost includes all directly attributable acquisition expenses. Depreciation is charged systematically to write off asset costs less residual values over their estimated useful lives. The Company reviews estimated useful lives, residual values, and depreciation methods at each period end, making adjustments when necessary.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
3.5. Research and development
The Company expenses all research costs as incurred, following FRS 102 and IFRS principles. Development costs are capitalized only when meeting strict FRS 102 criteria, including technical feasibility, adequate resources, and reliable cost measurement. During the current period, the Company expensed approximately £126,500 in research and development costs, as no projects met the capitalization criteria.
The Company provides fully for deferred tax arising from timing differences between taxation and accounting treatment of income and expenditure items. Deferred tax is calculated using tax rates expected to apply when timing differences reverse, based on current tax laws and rates. The Company does not discount deferred tax assets and liabilities.
The Company measures inventories at the lower of cost and net realisable value in accordance with FRS 102 Section 13. Cost comprises purchase price, conversion costs, and expenses incurred in bringing inventory to its present location and condition, determined using the First-In, First-Out (FIFO) method. Net realisable value represents estimated selling price less costs to complete and sell. The Company establishes provisions for obsolete, slow-moving, or impaired inventory when carrying amounts exceed net realisable value.
The Company conducts substantial operations in foreign currencies including U.S. Dollar (USD), Euro (EUR), Hong Kong Dollar (HKD), Chinese Yuan (CNY), and Japanese Yen (JPY). Foreign currency transactions translate into sterling using spot rates at transaction dates. Period-end monetary items retranslate at closing rates, while non-monetary items maintain historical rates for cost measurement or rates at fair value determination. Exchange differences are recognised in profit or loss, with gains and losses on borrowings and cash presented within finance costs. The Company manages currency risk by matching payable and receivable currencies where feasible, creating natural hedges to stabilize cash flows.
3.9. Intangible fixed assets
The Company carries intangible fixed assets, including purchased goodwill and patents, at cost less accumulated amortisation. Amortisation charges systematically over assets' estimated useful lives. The Company reviews carrying amounts annually for impairment indicators and recognises impairment losses when recoverable amounts fall below carrying values. Development costs are capitalized only when meeting FRS 102 recognition criteria; otherwise, they are incurred alongside all research costs.
The Company recognises government grants when reasonable assurance exists that conditions will be met and grants received. Income-related grants match with corresponding expenses in profit or loss. Capital grants either defer over asset lives or net against asset costs. The Company recognises grant income only when all conditions are satisfied and receipt is reasonably certain, ensuring compliance with FRS 102 recognition criteria.
The Company carries share investments at fair value where markets exist, using recognised valuation techniques when no active market is available. Fair value changes are recognised in profit or loss during the period they arise. Where reliable measurement proves impracticable, investments remain at cost less any impairment. The Company reviews investments annually for impairment indicators, recognising losses when recoverable amounts fall below carrying values.
I. REGULATORY, LAW ENFORCEMENT, AND OPERATIONAL IMPACTS
The period from 2019 to 2025 introduced unprecedented challenges for Conectid Group (the "Group") and its subsidiaries, including Appliance Book Limited (the "Company"), stemming from a series of interconnected fraud incidents, regulatory failures, and law enforcement misidentification. This note provides the first comprehensive public disclosure of these events, their operational impact, and the Group's strategic response.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
A. BANKING FRAUD AND STOLEN IDENTITY (2019–2020)
1. NON-DISCLOSURE OF INSTITUTION A'S NAME
Due to an ongoing investigation and various legal obligations, including data protection requirements, the Company has elected to refer to the involved financial institution only as "Institution A." By withholding its actual name, the Company ensures compliance with current legal directives, avoids compromising any pending judicial processes, and safeguards sensitive information while the underlying matters remain unresolved.
2. BACKGROUND AND FINANCIAL DISRUPTIONS (2019–2025)
Over the last five financial years, Conectid Group (the "Group")—including Appliance Book Limited (the "Company")—has faced extensive operational and financial disruptions arising from a series of intertwined regulatory challenges and law enforcement shortcomings. The Group relied upon several UK-based financial institutions for its banking needs; however, interactions with Institution A, an FCA-regulated entity, proved particularly problematic.
3. INITIAL BANKING RELATIONSHIP AND EMERGING IRREGULARITIES
During routine account reconciliations in 2019, the Group identified alarming inconsistencies in transaction processing. Outgoing payments were debited from the Group's accounts but did not reach their designated recipients, while incoming funds never appeared in official statements. These discrepancies prompted internal reviews and further scrutiny of Institution A's corporate and personal banking facility handling.
4. FALSE ALLEGATIONS AND DEFLECTION STRATEGY
When questioned about these transactional anomalies, Institution A alleged—without credible proof—that the Group's Directors had misappropriated other clients' funds. Such claims were baseless, as the Group had no capacity to access Institution A's banking systems or other customer accounts. Institution A's tactic of raising unsubstantiated accusations sowed confusion among its client base, successfully deflecting attention from its own internal failings. In some instances, legitimate businesses turned on one another, each suspecting the other of wrongdoing, while Institution A continued operating unchallenged.
5. REGULATORY REPORTING CHAIN AND SYSTEMIC FAILURES
Once the Group discovered these anomalies, it alerted Thames Valley Police ("TVP") and Action Fraud. Still, both agencies merely redirected the matter to the FCA and, ultimately, the Financial Ombudsman Service ("FOS"). Throughout this period, the FCA had reportedly been investigating Institution A; however, the FOS relied predominantly on the institution's narrative and did not independently verify mounting contradictory evidence. Institution A's directors, meanwhile, portrayed the Group and its Directors as complicit in the fraud, demanding that no substantive details be shared on the grounds of "ongoing investigations." Although the FOS operates under special procedures for confidentiality, these arguments stood unchallenged for nearly five years—effectively denying the Group any means to rebut or refute Institution A's unfounded claims.
6. FOS INVESTIGATION AND INSTITUTIONAL OBSTRUCTION
The Group anticipated that the FOS, as a dispute-resolution body, would scrutinise Institution A's baseless claims and address the Group's financial losses. Instead, the FOS engaged in a protracted inquiry, postponing substantive progress and repeatedly invoking confidentiality considerations. Only after a trove of internal emails was leaked in early 2024 did the Group learn that Institution A had supplied the FOS with conclusive evidence of its own wrongdoing—yet insisted the FOS withhold this information from the Group, citing data protection and ongoing investigations.
7. INSTITUTION A'S LIQUIDATION, OPAQUE INVESTIGATIONS AND EMERGING EVIDENCE
As the Group continued to seek clarity, Institution A entered liquidation. The Group duly registered its creditor claims, documenting substantial account shortfalls. Yet the appointed liquidators displayed little desire for a thorough examination, citing limited estate resources and insufficient liquid assets.
Core creditor reports even excluded the Group's significant claims. In practice, the liquidation enabled Institution A's directors to finalise its affairs with minimal forensic analysis of how client monies—particularly those belonging to the Group—had been misappropriated.
8. LEAKED EMAILS CONFIRMING WIDER COMPLICITY.
In early 2024, leaked emails emerged detailing communications among Institution A, the FOS, Action Fraud, and TVP. These emails contained explicit admissions from Institution A that it had utilised the Group's assets and funds (client funds - FCA CASS) for its own benefit, paying salaries and other operational expenses without the Group's consent or any contractual or
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
documentary records. Despite the Group's repeated warnings and Institution A's ongoing FCA scrutiny, no adequate regulatory safeguards were established to protect or recover the Group's capital. While the FOS withheld or misinterpreted these disclosures, citing "data protection," TVP continued to follow Institution A's misleading account, neglecting to investigate the Group's legitimate claim of fund misappropriation.
The evidence further revealed that Institution A's directors appeared to have strategically appointed specific liquidators to expedite the liquidation process while suppressing an ongoing FCA investigation into questionable operational practices. The liquidation proceedings effectively curtailed this investigation, prompted by intelligence regarding unregulated bond operations and potential client fund misappropriation. The Group's subsequent review of communications involving the liquidators and Institution A revealed deeply troubling facts: not only were there pre-existing relationships between the appointed liquidators and the directors of Institution A, but these connections appeared to have been deliberately leveraged to minimise regulatory scrutiny.
Rather than pursuing standard recovery procedures, the liquidators proposed an investigation framework that required the Group to shoulder the financial costs for the insolvency practitioners to delve deeper without any assurances regarding the pursuit of asset recovery. This situation raised serious concerns about the independence and effectiveness of the process. These conditions, bolstered by documented communications, indicated possible conflicts of interest that significantly affected the Group's ability to reclaim its assets.
Additionally, further email exchanges involving the liquidators revealed the extent of their prior affiliations and sympathetic ties with Institution A's directors. In line with the FOS precedent, the liquidators were repeatedly informed of outright admissions of fund misuse but took no decisive steps to compensate the Group. Burdened with covering any costs for deeper investigation, the Group effectively had to bankroll the inquiry meant to recover its assets, while the liquidators appeared to prioritise expediting the process over a thorough investigation of misappropriated client funds.
9. ADMISSION OF UNAUTHORISED FUND USAGE AND REGULATORY FAILURES
The 2024 leaked email correspondence provided definitive evidence that Institution A had explicitly admitted to the FOS their unauthorised use of client funds for operational expenses and staff salaries—actions strictly prohibited under FCA guidelines. These admissions included a specific acknowledgement that they had utilised the Group's working capital without any formal contractual basis or client consent, in direct violation of FCA CASS rules regarding client asset segregation. Despite the gravity of these admissions and their apparent contravention of regulatory requirements, the FOS failed to take appropriate action and actively suppressed this information.
10. FOS'S COMPLICITY AND SYSTEMATIC COVER-UP
The FOS's conduct extended beyond mere oversight failure into active participation in concealing serious regulatory breaches. When presented with Institution A's explicit admissions of unauthorised fund usage, the FOS agreed to withhold this critical information from the Group, accepting without verification Institution A's claims about supposed ongoing fraud investigations and pending arrests—claims now proven entirely fabricated. Even in February 2024, when these issues were escalated directly to the FOS's Chief Executive, the organisation steadfastly refused to reopen the case or acknowledge the documented evidence of fund misappropriation, raising serious concerns about potential complicity in covering up financial misconduct.
11. SYSTEMIC REGULATORY FAILURES AND ONGOING CONCEALMENT
The FOS's actions represent a fundamental failure of regulatory oversight and potential complicity in facilitating financial misconduct. Rather than fulfilling its statutory duty to protect consumers and ensure proper financial conduct, the FOS appears to have actively participated in concealing serious breaches of financial regulations. Their continued refusal to acknowledge or address Institution A's admitted misuse of client funds, even when presented with unambiguous documentary evidence, suggests a concerning pattern of regulatory capture and potential complicity in money laundering and fraud concealment. This behaviour has effectively sheltered Institution A from accountability while denying the Group access to both its misappropriated funds and legitimate regulatory recourse.
12. OUTLOOK, MATERIAL IMPACT, AND RECOVERY OPTIONS
In order to keep the broader Group solvent amidst severe cash-flow pressures and mounting operational losses, the Directors reluctantly sold core Group assets at discounted values during 2020–2022. These disposals included divesting certain subsidiaries, intellectual property rights, and other strategic investments—often well below market price—simply to preserve core business functions and keep Appliance Book and the Group operational. While these asset sales stabilised short-term liquidity, they significantly constrained the Group's future growth capacity.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
The leaked emails made it clear that multiple institutional frameworks failed to protect the Group as a regulated business client. Notably, the Group was effectively not able to recourse under the Financial Services Compensation Scheme ("FSCS"), given Institution A's (and related entities') claims of membership or authorisation, which in practice never yielded the promised protections. The Group regards these systemic failures as a profound betrayal of fundamental principles—fairness, accountability, and the rule of law.
Having weathered the immediate crisis, the Group remains resolved not to accept such systemic lapses. Directors have already initiated further legal proceedings against various institutions (including police authorities, banks, and ombudsman services), aiming to compel record corrections, secure financial redress, and instigate broader reforms. The Group also plans to publicise these failures, ensuring that no comparable business is forced into emergency disposals or protracted misidentifications in the future.
Although the Group has survived the worst of the crisis by sacrificing vital resources, it rejects the notion that systemic negligence or bureaucratic inertia should be allowed to continue, effectively permitting unscrupulous actors to exploit the FSCS framework or other consumer protections without consequence. The Directors believe that this situation contravenes every cornerstone of Western governance and economic fairness and are prepared to exhaust every legal and parliamentary avenue to ensure accountability. Despite these continuing battles, the Group projects that a successful resolution—via corrected records, legal restitution, or industry reforms—will ultimately enable it to rebuild and uphold the essential values of justice, transparency, and corporate responsibility in its markets.
B. PPE PROCUREMENT FRAUD (EARLY 2020)
Shortly after the banking fraud emerged, the Group sought to procure personal protective equipment ("PPE") worth approximately €852,000 to meet urgent COVID-19 requirements. Within days, the intermediaries in Europe absconded with the payment. The directors, alongside the customer (Customer B) and all other related parties, immediately reported the incident to the Dutch police, notified the financial institutions involved and took several measures to recover the stolen funds. While Dutch authorities recognised the Group's Directors as fraud victims and swiftly launched a criminal investigation, UK law enforcement took the opposite stance.
In February 2020, TVP arrested one of the Group's Directors and, as part of their investigation, seized the Group's electronic devices—later, when the devices were returned, all data and files, including essential business data, were erased. The resultant data loss severely undermined the Company's capacity to manage operations at a critical juncture. Despite further corroboration from Dutch prosecutors that the Directors had been defrauded, TVP continued listing them under an "impending prosecution," setting the stage for long-term misidentification that would bedevil the Company for years.
The arrest and subsequent investigation by TVP appeared to disregard crucial evidence and contradict facts. Before any police involvement, the Group had proactively arranged to reimburse the affected party's deposit despite anticipating a prolonged recovery process through Dutch authorities. However, the complainant, customer B, provided materially different accounts to the UK and Dutch authorities, subsequently demanding €404 million in damages and compensation—a fact known to TVP yet disregarded in their investigation. Dutch prosecutors repeatedly confirmed to UK authorities that the Group's Directors were never considered suspects but rather key witnesses who aided in identifying and prosecuting the actual perpetrators. Notably, Dutch authorities never requested access to the Group's electronic devices, contradicting TVP's stated basis for seizure.
1. IMPACT ASSESSMENT AND OPERATIONAL IMPLICATIONS
The timing and breadth of the device seizure proved especially burdensome, as it coincided with the peak of COVID-19 restrictions. The Company's entire digital infrastructure—responsible for critical communication with overseas subsidiaries, particularly staff and manufacturing facilities in China—was abruptly compromised. Unable to travel internationally, the Company relied exclusively on digital channels to maintain operational continuity. The sudden confiscation of devices thus not only disrupted immediate commercial activities but delayed essential decision-making processes crucial for sustaining cross-border manufacturing and distribution.
2. CRITICAL DATA LOSS AND EVIDENCE COMPROMISE
During the unlawful arrest, law enforcement authorities seized the Group's digital devices. TVP returned the seized devices, but they were entirely wiped off, eradicating invaluable business intelligence and investigative materials. This irreversible action
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
obliterated essential business records and investigative materials, encompassing financial transaction documentation, evidence supporting the Group's previously lodged fraud complaints, and findings from its internal investigations. The destruction of these files undermined the Group's ability to pursue legal remedies for ongoing complaints. It challenged its ability to maintain accurate records of the multiple criminal offences directed against it.
The Company's capacity to pursue legal redress for multiple existing complaints was undermined by effectively nullifying this evidence. It also constrained the preservation of accurate historical records concerning the broad array of criminal offences directed against the Group.
3. JURISDICTIONAL COMPETENCY CONCERNS
Several notable deficiencies in the investigative approach amplified the Company's operational setbacks. Firstly, the investigative team exhibited limited familiarity with international commercial norms and standard cross-border transactions, particularly in Asian markets—an oversight led to inaccurate assumptions. Secondly, rather than creating forensic copies of the devices' contents, investigators erased them, deviating from best practices in preserving digital evidence. Thirdly, the UK authorities appeared to disregard the comprehensive framework and official victim status established by Dutch agencies, thereby forfeiting any effective collaboration with European counterparts. Lastly, the investigating team displayed a limited understanding of intricate financial scams, causing them to dismiss clear indicators that the Group had been defrauded.
These oversights inflicted undue reputational damage on the Company, provoked long-lasting regulatory complications, and compromised its operational infrastructure. The same investigative shortcomings that enabled the prolonged misidentification also hindered the Group's prospects of recovering funds related to the PPE fraud. TVP's handling of the PPE procurement fraud b obstructed the Group's path to justice and inflicted considerable disruptions upon legitimate business activities at the height of a global pandemic. The repercussions of this compromised investigation continue to influence the Company's operations and its pursuit of legal remedies in subsequent matters.
4. OUTLOOK, MATERIAL IMPACT AND RECOVERY OPTIONS
These detrimental impacts severely compromised the Group's ability to respond effectively to the COVID-19 pandemic. While these material issues warranted disclosure in previous years' accounts, the Group's compromised digital infrastructure and ongoing regulatory complications precluded comprehensive reporting. Despite these unprecedented challenges, management undertook extraordinary measures, operating continuously to stabilise operations and rebuild the Group's position. These recovery efforts, conducted through sustained round-the-clock operations seven days a week, demonstrated remarkable resilience in restoring operational capability.
However, just as stability was restored, TVP's persistent refusal to correct their records inflicted fresh damage to the Group's operations and reputation. Their reluctance appears motivated by potential liability concerns, as correcting these records could expose them to substantial compensation claims—estimated in the hundreds of thousands, if not millions, of pounds. While the Group had initially refrained from pursuing legal action against law enforcement, considering it ethically questionable, TVP's continued maintenance of demonstrably false records and subsequent misidentification (see below, Section C) has effectively eliminated all alternative remedies. This intransigence, coupled with the compounding commercial damage, has forced the Group to consider legal recourse despite its initial reservations.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
C. CONTINUED MISIDENTIFICATION AND THE 2024 UK ACCOUNT FREEZE
From 2021 onward, Thames Valley Police ("TVP") declined to amend its records despite the Group's repeated requests and multiple international findings confirming the Directors' victim status. This uncorrected misidentification led to escalating difficulties and ultimately cut the Group from local financial services. In July 2024, the South East Regional Organised Crime Unit ("SEROCU"), acting under TVP, relied on these erroneous files to petition for Account Freezing Orders ("AFOs") against the Group's remaining UK bank accounts.
1. THE AFO APPLICATIONS UNFOUNDED JUSTIFICATIONS AND ZERO CHECKS
Upon legal review, the AFO requests were found to rely on outdated, unverified allegations. The supporting claims—some drawn from a demonstrably false website—had previously been dismissed by a TVP officer as "so lacking in substance that no reasonable person would take it seriously" when the Group directors reported the website’s content to TVP as part of brooder blackmail effort against the Group by the perpetrators of Company A mention above to withdraw the Group’s complaints with the police and the regulators. Essential due diligence would have disproved these claims; however, SEROCU proceeded without verifying the Group's legitimate commercial activities or properly assessing the Directors' documented victim status in other jurisdictions. Moreover, the financial institutions that initially triggered these AFOs had long been aware the Group was a victim rather than a perpetrator. Despite this knowledge, they instigated a process that lacked proportionality and overlooked the core evidence of misidentification.
2. CONTRADICTORY CLASSIFICATIONS
The same banking partners that instigated the AFO had once treated the Group as a "shelf company" also argued—through the Financial Ombudsman Service ("FOS")—that the Group was "too large" to fall within FOS jurisdiction, undermining the Group's efforts to challenge the account-freezing actions. This contradictory stance exemplified the unfounded nature of the claims: on the one hand, the Group was portrayed as having minimal operations, yet on the other, it was deemed too large and complex to seek recourse at the FOS.
3. COURT OVERTURN AND SEROCU'S ADMISSION - SEPTEMBER 2024 COURT RULING
In September 2024, after examining comprehensive documentation—most notably, Dutch prosecutorial evidence affirming the Group's status as a fraud victim—a UK court overturned the AFOs. SEROCU formally acknowledged the court's determination, recognising that the Directors were never suspects and that the Group had cooperated extensively in earlier investigations (leading to key arrests of actual perpetrators). Crucially, the ruling affirmed that no wrongdoing could be ascribed to the Group or its Directors.
4. CONTINUED MISIDENTIFICATION BY TVP
Despite this judicial resolution, the TVP division responsible for record corrections refused to update its files. As a direct result, the same "pending prosecution" label persisted in public records, preventing UK banking partners from reinstating the Group's accounts. Although the Group had facilitated arrests, uncovered scams, and shown beyond doubt that it was the fraud victim, TVP's inaction perpetuated the misidentification, ensuring the Company remained effectively barred from domestic financial services.
5. BLOCKED TRANSACTIONS AND FROZEN INVENTORY
By 31 December 2024, the Group had incurred direct operational losses of over £700,000, attributable to stalled payments, held inventories, and emergency interventions. Indirect harm—specifically reputational damage and foregone opportunities—exceeded £1.6 million, with approximately £4 million in cancelled or imperilled contracts.
6. EXTRAORDINARY EXPENSES AND DAILY COSTS
Since July 2024, daily operational overheads from the account freeze (including extra payment processing fees, reliance on offshore solutions, and customer retention measures) have averaged £3,571. These extraordinary costs, totalling £623,925 in 2024 alone, underscore the disproportionate burden that misidentification and unsubstantiated AFOs have placed on the Group's normal business activities.
7. OFFSHORE BANKING AND COMMISSION-BASED STRUCTURES
In the face of persistent UK banking exclusion, the Group resorted to offshore banking arrangements to preserve day-to-day liquidity while pivoting to a lower-margin, commission-based model. This approach prevented the immediate collapse of key client relationships and safeguarded some revenue streams. Though the strategy yielded substantially reduced turnover, management estimates normalising operations under correct records could restore up to 75% of the previously lost contracts,
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
pending regulatory resolution.
8. LEGAL ACTIONS AND CALLS FOR ACCOUNTABILITY
The Group has initiated legal proceedings against TVP to remedy the uncorrected misidentification. It also continues to press financial institutions and the FOS for clarity on their contradictory positions regarding the Group's size and scope. The Directors remain committed to ensuring authorities recognise the Group's proven victim status, unlocking the path to reinstated UK banking services.
9. OUTLOOK AND MATERIAL UNCERTAINTY - KEY PRIORITY FOR 2025
Resolving the misidentification is the Group's foremost goal in the coming year. Although the Company's underlying business model remains robust—sustained by strong international demand for its eco-friendly product lines—UK-based operations face severe constraints until domestic banking channels are restored. The uncertainty created by TVP's inaction and the historical reliance on false or trivial information to secure AFOs poses a material risk to ongoing growth.
10. CONFIDENCE IN JUDICIAL AND REGULATORY CORRECTIONS
Notwithstanding these challenges, the Directors believe that continued legal remedies and transparent disclosures will eventually result in the correction of TVP's records. Once recognised as victims and rightful account holders, the Company anticipates a substantial rebound in operational stability and contract reinstatement. Until then, the Group's medium-term strategy hinges on offshore banking relationships, commission-based revenue, and demonstrable adherence to regulatory standards across its international markets.
D. SYSTEMIC INSTITUTIONAL, REGULATORY AND LAW ENFORCEMENT FAILURES
In 2019–2024, the Group alerted various UK authorities to the series of fraudulent and misidentification incidents it was experiencing. Nevertheless, multiple agencies either lacked coordination or failed to act decisively, causing the crisis to worsen. As these events progressed, it became clear that numerous agencies had been unable to act on unmistakable evidence of misconduct, leaving the Group exposed:
1. THAMES VALLEY POLICE (TVP)
Despite the Group's repeated complaints, along with evidence of suspicious transaction histories, TVP and Action Fraud effectively deferred to the FCA or the FOS. They did not actively investigate or challenge Institution A's shifting narratives, remaining inactive even after the leaked emails demonstrated the institution's direct admissions of client-fund appropriation.
TVP's erroneous classification of the Group's Directors as suspects—despite Dutch and other international authorities' confirmation that the Group and its were victims—remained unchanged. The 2020 arrests and subsequent erasure of vital electronic data severely constrained the Company's capacity to contest these allegations. Although the Directors made repeated requests to correct TVP's records, the misidentification endured, perpetuating reputational damage and leading to ongoing account closures.
2. ACTION FRAUD
Numerous complaint references were filed with Action Fraud, but the Group was repeatedly directed to other bodies, such as the FCA or local police. This "circular referral" process resulted in no significant investigation or relief, leaving the Group exposed to ongoing fraud and unaccounted-for funds.
3. FINANCIAL CONDUCT AUTHORITY (FCA)
The FCA had advanced knowledge of Institution A's questionable activities yet adopted a high-level perspective, referring specific complaints to the FOS. Despite receiving ongoing updates and eventually reviewing leaked admissions of blatant client-fund misuse, the FCA instituted no direct enforcement actions to protect the Group or recover its capital.
Although the FCA has statutory responsibility for banking and financial services, its response to the Group's situation focused mainly on overarching market concerns. The Group was urged to seek redress via the Financial Ombudsman Service (FOS). Leaked documents later revealed that, while the FCA had begun examining suspicious activities involving certain firms tied to the Group's stolen identity, no direct measures were taken to recover misappropriated funds or hold the perpetrators accountable. Instead, those firms exploited GDPR exemptions and incomplete disclosures, further compounding losses for the Group.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
4. FINANCIAL OMBUDSMAN SERVICE: ADDITIONAL REVELATIONS
The FOS not only declined to correct Institution A's patently false allegations but also withheld decisive admissions of wrongdoing from the Group, preventing it from effectively rebutting claims. The FOS further refused to reopen the case once the leaked communications surfaced, thereby embedding the institution's misrepresentations in the formal record.
Leaked communications in early 2024 intensified scrutiny of the FOS, demonstrating that certain financial institutions—already under FCA investigation for allegedly misusing the Group's deposits—had confessed to wrongdoing. However, these admissions never appeared in the FOS's official findings. Allegedly, the FOS accepted GDPR-based requests to withhold pivotal evidence from the Group's Directors, undermining the Group's ability to effectively refute the institutions' claims. Over nearly three years, the FOS neither rectified the underlying misidentification nor made public the institutions' admissions of misuse, highlighting deeper systemic issues in consumer protection.
5. LIQUIDATORS' LIMITED INQUIRY.
Institution A's liquidators, claiming insufficient estate resources, conducted a minimal examination that omitted the Group's significant claims. Their process thus failed to account for extensive missing client funds, culminating in a truncated liquidation that brought no meaningful resolution for the Group.
E. PUBLIC DISCLOSURE AND CALLS FOR PARLIAMENTARY REVIEW
By 2021–2022, standard complaint mechanisms—including appeals to professional standards agencies, the Independent Office for Police Conduct, and various ombudsman services—had yielded no meaningful relief. In 2023, the Group resolved to disclose these institutional oversights publicly through media statements and social media channels, culminating in a parliamentary petition in 2024 seeking an independent inquiry into persistent misidentification and regulatory inertia. Provisional outcomes from these escalations may emerge around Q2 2025. Until the inaccuracies in TVP's records are fully corrected, the Directors remain effectively barred from mainstream UK banking, undermining day-to-day operations and investor trust in the Company.
F. LEGAL AND REGULATORY OUTLOOK
With minimal support in the UK for rectifying the misidentification and addressing the underlying fraud, the Group has initiated or is examining several legal strategies:
• Civil actions against financial institutions implicated in the stolen-identity schemes and PPE fraud.
• Judicial reviews against the Financial Ombudsman Service for ignoring substantial evidence of misuse of deposits.
• Formal complaints and calls for oversight investigations into TVP's refusal to correct records continue to cause operational harm.
In accordance with FRS 102, no contingent assets have been recognised due to the uncertain timing and results of these potential legal remedies. Moreover, should any legal victories generate funds beyond the Group's immediate compensation and recovery needs, those surplus amounts will be contributed to the Fair and Correct Foundation—demonstrating the Directors' commitment to structural reform over mere financial restitution.
To protect the Company's financial stability from expansive legal costs, the Directors chose to personally fund significant litigation. They also implemented internal measures—extended credit arrangements with Conectid Limited and converting certain debts into long-term loans—to ensure operational continuity. By upholding business-critical financing through corporate resources, the Directors have kept the Company functioning while pursuing external legal solutions to resolve the misidentification crisis.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
H. MITIGATION MEASURES AND CONTINUING OPERATIONS, AND UK FACTORY PLANS
Facing near-total inaccessibility to UK banking services, the Group established offshore banking channels to handle payments, payroll, and customer orders. Suppliers agreed to extended payment terms of 60–90 days, ensuring consistent inventory flow. In conjunction with cross-Group cash pooling and favourable credit lines from Conectid Limited—estimated at £2.0–£3.0 million in readily accessible funding—the Company's immediate cash needs have been stabilised.
Commercially, the Company shifted to a commission- or consulting-fee model, which significantly reduces margins but preserves essential client relationships. Although this approach notably decreases reported turnover, it prevents the cancellation of key contracts and retains the flexibility to revert to higher-margin direct sales as soon as UK banking channels are restored. The Directors remain confident that once normal banking operations resume, Appliance Book will be well-positioned to tap into latent demand for its eco-friendly products and restore profitability.
Additionally, the Group's planned UK manufacturing facility—originally slated for launch in 2024—has been placed on hold due to the ongoing misidentification and the resulting lack of confidence in the UK regulatory environment. Given the difficulties encountered when seeking institutional support and clear legal status, the Directors have determined that significant further investment in a UK factory poses excessive risk. In parallel, the Company's prototypes—designed around sustainability and innovative functionalities—have already earned recognition in international competitions, providing a strong foundation for future growth once the misidentification issues are resolved and banking stability is restored.
I. FINANCIAL IMPACT AND GOING CONCERN
The Group's losses attributable to Institution A's misconduct are substantial. Account balances that never arrived at intended recipients, unexplained deficits in corporate and personal accounts, and cancelled agreements—together, these disruptions eroded the Group's working capital. The final scale of financial harm remains indeterminate, given that some claims remain unverified due to limited liquidation inquiries and the FOS's refusal to reopen the case.
Despite these setbacks, the Directors have instituted several mitigation measures:
Alternative Banking Solutions.
The Group implemented offshore and third-party banking arrangements to ensure operational continuity.
Legal Avenues.
The Group filed formal complaints and is considering further judicial proceedings against Institution A and associated parties, bolstered by the leaked evidence of wrongdoing.
Internal Controls.
The Group strengthened its own transaction oversight, verifying that no single institution controls all critical payment flows.
Cash flow forecasts incorporating these measures, combined with the Group's robust international alliances, indicate that the Company can sustain operations for at least twelve months from the approval date of the financial statements. Although material uncertainty surrounds the timeline for recovering lost funds or resolving the negative ramifications of Institution A's misconduct, the Directors maintain a going concern assessment in light of diversified banking relationships, stable revenue streams from overseas clients, and the potential for legal remedies.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
While the final consequences of Institution A's actions and the related institutional lapses remain subject to ongoing legal and regulatory outcomes, the Group has emerged with a stronger emphasis on risk management, multi-jurisdictional banking, and ethical sourcing. The Directors believe that these reforms position the Group favourably to restore lost business opportunities, expand its sustainable product lines, and reinforce investor confidence. Should the leaked admissions of fund misuse yield eventual regulatory corrections or court findings, the Group expects a more straightforward path to recovering withheld capital and stabilising its UK operational presence.
Despite these ongoing challenges, the Group retains strong fundamentals that underscore a positive medium-to-long-term outlook. Its focus on sustainable product design has attracted international recognition, including shortlisting for multiple innovation awards. Core intellectual property and developmental resources remain intact while investors continue to endorse ongoing research and development initiatives and global market expansion. The Directors remain confident that a clear legal and regulatory path exists to correct the persistent misidentification, reinstate full UK banking facilities, and ultimately restore the Group's operational stability.
All estimates and assumptions set forth in this note and the broader financial statements are based on information available at the reporting date but remain subject to further refinement as legal, regulatory, or operational matters progress. The Group has also evaluated scenarios involving the potential disposal or suspension of specific subsidiaries if the misidentification remains unresolved. Such measures aim to safeguard liquidity for core operations until standard UK banking services can be resumed. This approach aligns with actions taken in 2020, when the Group was compelled to dispose of certain critical assets at below-market values following the initial fraud incidents and corresponding police misidentification, culminating in a restructuring that led to the formation of the UK ultimate holding company.
The Directors have prepared these financial statements on a going concern basis, having carefully evaluated the Company's capacity to meet obligations for at least twelve months from the approval date of these accounts. This assessment considers the ongoing misidentification disruptions and the robust mitigation strategies outlined above.
A. QUANTIFICATION OF AVAILABLE RESOURCES AND GROUP SUPPORT:
Management has prepared detailed cash flow forecasts extending through at least the next twelve months. These forecasts factor in restricted UK banking access as well as anticipated legal costs. Offshore banking arrangements currently facilitate transaction processing, supplemented by substantial credit lines from Conectid Limited, estimated at £2.0–£3.0 million in accessible liquidity. Supplier payment terms of 60–90 days further alleviate short-term cash requirements and ensure coverage of day-to-day operational needs.
B. CASH FLOW FORECASTS AND STRESS TESTING:
The Directors have conducted stress tests to reflect prolonged misidentification and continued limits on UK banking facilities. Even under adverse conditions, the Company is projected to remain solvent via:
• Ongoing offshore banking solutions have been adopted successfully since mid-2024.
• Internal Group-level credit lines and extended supplier terms.
• Sustained revenue from commission- or fee-based models, albeit at reduced margins.
Although there is a material uncertainty in predicting when UK banking relations can be fully reestablished, the Group's stable international presence, supportive investor base, and strong product demand support the Directors' view that Appliance Book can continue to operate as a going concern. Ongoing legal efforts aim to correct the misidentification, thereby removing the principal barrier to UK banking access.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
In light of available liquidity, continued Group-level support, and the demonstrated viability of the current fee-based operational framework, the Directors conclude that preparing these financial statements on a going concern basis remains appropriate in accordance with Section 32 of FRS 102 (Events after the End of the Reporting Period). No adjustments have been made that would be required if the Company were unable to continue as a going concern.
A. INTRODUCTION AND OUTLOOK:
Excluding external disruptions—primarily the misidentification-driven account freezes—the Company has demonstrated steady growth potential in its core operational areas. Worldwide consumer demand for high-performance, environmentally responsible devices remains high, aligning with Appliance Book's core expertise in connected, eco-conscious technologies. Prior to the latest banking crisis, the Company operated multiple stable banking relationships and witnessed robust sales growth.
Despite broader economic challenges, Appliance Book has sustained satisfactory profit margins by aligning production with shifting consumer preferences for automation and energy efficiency. Nevertheless, ongoing misidentification from 2020 onward has constrained the Company's capacity to invest in inventory and scale operations. The full suspension of UK banking in mid-2024 compounded these constraints, prompting short-term shifts to alternative business models with narrower margins. While the Company's combined direct and indirect losses exceed £1.6 million, management projects strong recovery prospects once normal banking channels resume.
C. PRINCIPAL RISKS AND UNCERTAINTIES:
1. REGULATORY FAILURES:
Involving TVP, Action Fraud, and the Financial Ombudsman Service continue to hamper normal business operations.
2. ECONOMIC AND POLITICAL FACTORS:
Brexit aftereffects and global market volatility affect consumer confidence and supply chain costs.
1. SUPPLY CHAIN DISRUPTIONS:
Evolving trade regulations and logistics bottlenecks pose ongoing challenges.
4. TECHNOLOGICAL PACE:
Rapid innovation in AI, IoT, and other advanced fields necessitates continual R&D investment.
D. CRITICAL OBSERVATIONS ON UK OPERATIONS:
Since 2020, efforts to rectify the misidentification through UK law enforcement have proven unsuccessful, culminating in the 2024 account-freezing orders that effectively removed the Company from UK banking. These unresolved institutional failures hamper daily transactions, regulatory compliance, and payroll management. The Directors are left to rectify serious institutional errors with minimal external support.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
E. FUTURE PROSPECTS AND COMMITMENT:
Although compelled to operate temporarily at lower margins, the Directors remain confident in the underlying strengths of the Company's technology portfolio and market positioning. Once banking and regulatory hurdles are resolved, management anticipates a significant rebound in direct-sales revenue. International partnerships in the Greater Bay Area and other key global hubs further bolster the Company's long-term growth pathway. Concurrently, litigation aims to correct misidentification records, restore investor confidence, and reestablish stable UK banking relationships.
Notwithstanding systemic setbacks, Appliance Book remains resilient, supported by Conectid Group's international partnerships, new offshore banking solutions, and proactive legal strategies. By maintaining its focus on leading-edge, sustainable product offerings, the Company presents a compelling market proposition even under current constraints. With prospective regulatory and legal reforms, the Directors expect Appliance Book to revert to its standard higher-margin operational model and achieve sustainable growth over the long term.
IV. SUSTAINABILITY AND ETHICAL COMMITMENTS
Conectid Group and Appliance Book are firmly committed to sustainable, fair, and ethical practices. This guiding principle permeates the Group's global operations:
A. ENVIRONMENTAL STEWARDSHIP
Through the development and marketing of energy-efficient appliances, the Company advances eco-friendly technology. Ongoing programmes for product donation, recycling, and streamlined supply chain processes minimise waste and embody environmental responsibility.
B. COMMUNITY AND STAKEHOLDER ENGAGEMENT
Transparent, open communication underpins every interaction with customers, employees, and community partners—particularly crucial amid the current misidentification crisis. Non-cash contributions and product donations to social enterprises underscore the Group's aim to promote societal well-being.
C. ETHICAL SOURCING AND PARTNERSHIPS
The Group collaborates with suppliers and entrepreneurs who prioritise integrity, equity, and respect. Further partnerships are chosen based on their alignment with Conectid's emphasis on open, ethical operations and a human-centred approach to innovation.
In line with the Group's philanthropic ideals, Conectid speaks out against institutional shortcomings harming SMEs and consumers. The Group continues to drive anti-fraud measures, including dedicated legal action and support for the Fair and Correct Foundation.
By embedding these principles into everyday operations, Appliance Book (and the wider Conectid Group) aspires to drive sustainable growth while contributing positively to local and global communities.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
4
Intangible fixed assets
Other
Charge for the year
73,253
AFTER-SALES SERVICE MODULE
A. ORIGINAL COST AND VALUATION
The after-sales service AI booking module was initially recognised at £201,208, reflecting its development costs at the time of capitalisation.
Over subsequent periods, it was fully amortised based on its then-estimated useful economic life, resulting in a net book value of £1 as of the balance sheet date.
B. CONTINUING ECONOMIC BENEFIT
Although this AI module is shown at a nominal net book value, it remains integral to the Company’s service operations. The module underpins an intelligent booking system for after-sales service calls, predicting required spare parts and optimising the allocation of service engineers. Where supported by smart appliance integrations, the system can remotely diagnose (and sometimes resolve) appliance issues.
The Directors consider that the module still provides ongoing economic benefits and is the foundation for expanded platforms and future operational enhancements.
C. ACCOUNTING POLICY
The Company’s accounting policy for intangible fixed assets is to amortise them over their estimated useful life or to impair them if further economic benefits are not expected. No impairment has been recognised since management’s annual review confirmed the module’s operational value. Although fully amortised, £1 remains to acknowledge the intangible’s continuing role in service-oriented software solutions.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
5
Tangible fixed assets
Plant & machinery
Charge for the year
32,858
During the year, the Company introduced inventory holdings as part of a significant shift in its operating model. Historically, the Company operated on a direct factory-to-customer delivery basis with no inventory requirements. This change was prompted by evolving business conditions and the need to enhance operational resilience.
A. RATIONALE FOR CHANGE
By holding inventories, the Company aims to:
• Mitigate supply chain disruption risks
• Ensure consistent and timely customer deliveries
• Maintain service quality during periods of supply chain volatility
• Enhance responsiveness to customer requirements
B. ACCOUNTING POLICY – INVENTORIES
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method and includes the cost of raw materials, direct labour, other direct costs, and relevant production overheads. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
C. IMPACT ON FINANCIAL STATEMENTS
• As of 31 March 2024, the Company held inventories of £[12,939 (2023: £nil), marking the first time in recent years of inventory holdings.
• The inventories primarily consist of appliances and electronics that are maintained to support ongoing customer requirements and ensure business continuity.
• The Company has implemented inventory management systems and controls to monitor stock levels, ageing, and valuation. Regular reviews are conducted to identify any obsolescence issues, and write-downs to net realisable value are recorded where necessary.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
Amounts falling due within one year
Trade debtors
327,288
1,704,487
Amounts falling due after more than one year
8
Creditors: amounts falling due within one year
2024
2023
Trade creditors
82,120
1,000,608
Taxes and social security
35,559
60,559
9
Creditors: amounts falling due after more than one year
2024
2023
Amounts owed to group undertakings and other participating interests
250,000
250,000
During the year, certain trade payables owed to the Group were converted into a long-term loan to provide additional support for the Company. As described in Note 14, this support became necessary following the police misidentification and failures within the regulatory regime to protect the Company’s interests. In particular, extended credit lines and longer maturity dates help mitigate the shortfalls caused by any ongoing banking restrictions, thereby preserving liquidity for core operational activities.
The conversion of these payables into long-term debt ensures that the Company can continue its operations without immediate repayment obligations, which aligns with the Group’s commitment to sustaining the Company’s financial stability. The resulting long-term liability is unsecured, carries favourable terms, and is repayable when cash flow permits, reflecting the supportive arrangements disclosed in Notes 3 (Going Concerm) 14 and 16.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
10
Provisions for liabilities
£
Additional provisions made during the period
75,000
At the beginning of the financial year, the total provision for liabilities stood at £175,000. During the year, the Company recognised an additional £75,000 in provisions, comprising £15,000 related to after-sales warranty claims and £60,000 allocated to fraud losses and refunds. Within the same period, £25,000 was utilised specifically to cover after-sales warranty claims. Consequently, the closing provision as of the balance sheet date is £225,000, broken down into £25,000 for after-sales warranty obligations and £200,000 for fraud losses and refunds.
A. AFTER-SALES WARRANTY PROVISION
This provision reflects the estimated cost of claims arising from warranty obligations on products sold by the Company. The Company recognises a provision at the time of sale, reflecting its current constructive obligation to repair or replace defective goods under the stated warranty terms.
1. NATURE AND RECOGNITION
A warranty provision is recognised immediately upon the sale of a product. This recognition acknowledges the Company’s obligation to rectify or replace faulty items within a specified period, typically up to 24 months from the date of purchase.
2. BASIS OF ESTIMATION
The amount of the provision is calculated by examining historical warranty claims data and recent developments in product quality and sales patterns. The Company primarily considers failure rates for in-warranty products and the average cost associated with each repair or replacement. Assumptions may be revised periodically to capture emerging trends or variations in product performance.
3. ASSUMPTIONS AND JUDGEMENTS
In projecting after-sales warranty outflows, the Company applies informed estimates. Should actual failure rates or average repair costs diverge from the assumptions made, the resulting over- or under-provision is credited or charged to the profit and loss account in subsequent accounting periods.
4. TIMING OF OUTFLOWS
Most warranty claims typically arise within the first six months of the product’s in-warranty window. While the Company recognises the provision upfront, actual settlement of these claims can vary in timing, often extending over the entire warranty duration.
B. FRAUD LOSSES AND REFUNDS PROVISION
The residual £200,000 in the provision addresses anticipated obligations stemming from fraudulent incidents, including potential refunds to customers and related remedial costs. Further details on the fraud losses and refunds element of the provision appear in the corresponding sections above.
Allotted, called up and fully paid:
150,000 Ordinary shares of £1 each
150,000
150,000
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
The Company is subject to, or anticipates, claims from certain customers concerning delays and potential breaches of contract arising directly or indirectly from the misidentification by Thames Valley Police (“TVP”) and subsequent UK banking restrictions. These constraints—worsened by certain financial institutions’ non-compliance with court orders—have led to operational delays affecting customers.
A. NATURE OF CONTINGENT LIABILITIES
1. BASIS OF CLAIMS:
Primarily breach-of-contract allegations over delayed deliveries or services.
2. UNCERTAINTY OF AMOUNT:
The ultimate scope of potential losses remains unclear, given continuing assessments of the proportion of damages attributable to the Company or Conectid Group, as opposed to external entities.
B. LEGAL AND REGULATORY PROCEEDINGS
The Company actively seeks redress against TVP and the involved financial institutions, which may potentially lead to recoveries. However, the precise outcome and timing of these actions remain too uncertain to recognise an asset.
C. POTENTIAL RECOVERIES AND ALLOCATION
1. USE OF RECOVERIES:
Any compensation or damages received will initially be applied to compensate customers for documented losses.
2. DONATION OF SURPLUS:
Any surplus beyond direct restitution will be contributed to the Fair and Correct Foundation, in line with the Company’s broader commitment to aiding fraud victims and fostering systemic reform.
D. ACCOUNTING TREATMENT
Under FRS 102, no liability for these prospective claims has been recognised, owing to the uncertainty surrounding the likelihood, magnitude, and timing of any payouts. Equally, no contingent assets linked to prospective litigation outcomes have been recognised because the success or timeframe of such claims cannot be reliably measured. The Directors continue to observe these developments and will recognise a provision if it becomes probable that an outflow of resources will be required and can be reliably measured.
13
Transactions with related parties
All related-party transactions have been conducted on terms comparable to those with independent third parties, including the pricing of goods, services, and typical settlement terms.
Nonetheless, due to the continued police misidentification and subsequent banking challenges, the Group implemented measures to safeguard operational stability across its subsidiaries. Consequently, Conectid Limited, the Group’s holding company, extended financial assistance to support both the Group and this Company in meeting their operational and financial obligations. These supportive measures are offered at more favourable conditions than what would typically be available from third-party lenders, thus diverging from standard arm’s-length terms.
In accordance with FRS 102, all such support arrangements and their conditions have been disclosed and reflected appropriately in these financial statements. The Directors estimate that between £2.0 million and £3.0 million of credit remains accessible through these Group-level arrangements, mitigating short-term liquidity pressures and compensating for the Company’s exclusion from UK banking services.
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
On 1 January 2020, Conectid Limited obtained a 100% interest in Appliance Book LTD.
Conectid Limited is registered as a limited company in England and Wales, Company No. 10810165. Registered office: Conectid Group, 400 Thames Valley Park Drive, Thames Valley Park, Reading, Berkshire, England, RG6 1PT, United Kingdom. www.conectid.com
Appliance Book Ltd
Notes to the Accounts
for the year ended 31 March 2024
15
Post balance sheet events
POST BALANCE SHEET EVENTS: UK BANKING RESTRICTIONS AND LEGAL PROCEEDINGS
During 2024, the Company and the wider Conectid Group experienced a major disruption to their UK banking facilities, triggered by misidentification in Thames Valley Police (“TVP”) records. Although certain financial institutions had been made aware of the erroneous classification—from court rulings reaffirming the Directors’ victim status—several of them abruptly pursued account closures and restrictions, claiming anti-money laundering (“AML”) concerns despite lacking substantive evidence or justification. As a result, the Group lost access to crucial banking services within the UK.
In response to these restrictions, the Company adopted a series of mitigation strategies, including establishing alternative banking arrangements outside the UK, revising operational and treasury procedures, and reinforcing existing business continuity measures. Despite implementing these safeguards, the forced loss of UK banking relationships caused extensive operational challenges, particularly for day-to-day financial transactions.
A. LEGAL ACTIONS AND INSTITUTIONAL FAILURES
The Company commenced legal proceedings against the banks responsible for imposing unwarranted restrictions and lodged complaints with the relevant UK regulatory bodies. Following judicial rulings in multiple jurisdictions—including a September 2024 court order—Conectid Group and the Company were again acknowledged as fraud victims, yet TVP persisted in using inaccurate records, enabling further unwarranted banking restrictions. The Directors contend that these institutions, though ostensibly aware of the misidentification, continued to rely on outdated TVP data. All legal costs arising from these proceedings are personally funded by the Directors.
The Directors also highlight that certain financial institutions’ conduct may represent a breach of key FCA Principles for Businesses, the Payment Services Regulations 2017, and GDPR obligations, primarily due to reliance on misinformation and the disproportionate application of AML measures. The Company’s internal impact assessment suggests that the combined direct and indirect losses caused by these interruptions and closures exceed £1.6 million.
B. LACK OF PROPORTIONALITY IN AML MEASURES
The Directors underscore the disproportionate usage of AML rules, resulting in blanket account restrictions without firm evidence, contravening both favourable court decisions and repeated clarifications provided by the Company. These measures impeded critical operations such as supplier and employee payments, leading the Company to seek further remedies and public disclosures in an effort to rectify institutional lapses.
C. POTENTIAL RECOVERIES AND NO RECOGNITION OF ASSETS
No contingent assets have been recognised in these financial statements in respect of potential compensation from ongoing legal or regulatory actions, as neither the outcome nor timing can be predicted with reasonable certainty. Should any monetary award or damages be obtained, the Company will donate amounts above and beyond the direct compensation required to the Fair and Correct Foundation—Conectid Group’s philanthropic entity supporting fraud victims and advocating systemic reforms.
D. GOING CONCERN CONSIDERATIONS
While acknowledging the resultant reputational and operational harm, the Directors reconfirm the Company’s going concern status. Offshore banking relationships, enhanced internal controls, resilient international operations, and prudent cost management collectively demonstrate sufficient resources for at least twelve months beyond the date of these financial statements. Consequently, no adjustment has been made for any potential cessation of going concern.
This note complies with FRS 102 Section 32: Events after the End of the Reporting Period and describes the circumstances as of the publication date.
16
Average number of employees
During the year the average number of employees was 1 (2023: 1).