Company registration number SC533961 (Scotland)
PAYBIS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAYBIS LIMITED
COMPANY INFORMATION
Directors
I Isers
Company number
SC533961
Registered office
1 West Regent Street
Glasgow
G2 1RW
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
PAYBIS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 28
PAYBIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report for the year ended 31 October 2023.

Review of the business

 

About us

 

Paybis LTD is the parent company of Paybis group (hereinafter referred to as "Paybis" or "we" or "the company").

 

Our business

 

The company offers a range of products, all of which serve the goal of streamlining the way customers in over 100 countries buy or sell cryptocurrencies online.

 

Our suite of products is designed to provide seamless and efficient experience.

 

Our global team, consisting of over 100 talented professionals, drives the innovation and success of our operations.

 

Industry

 

The cryptocurrency industry continues to be subject to volatility and instability. We acknowledge the significant risks and challenges that could impact our growth and core operations. The company undertakes its best efforts to forecast and mitigate risks through robust contingency planning and preparation for evolving regulatory landscapes.

Principal risks and uncertainties

 

Regulatory compliance

 

Over the past few years, governments around the world have increasingly recognised the maturing cryptocurrency industry. Paybis anticipates increasing scrutiny of the cryptocurrency industry in the coming years and embraces regulations that strike a balance between safeguarding customers and enabling business growth. Operating internationally presents significant challenges with frequent regulatory and legislative changes across various jurisdictions.

 

Paybis adheres to maintaining the highest standards of compliance. The company has a 24/7 risk and compliance department which consists of skilled and experienced professionals, who go through regular training and follow strict compliance procedures as set by the company's Risk Management.

 

The company invests in specialised technical training programs to ensure our team stays at the forefront of industry knowledge and remains well-prepared for regulatory developments.

 

PAYBIS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Development and performance

 

Financial performance

In the fiscal year, the group generated €31.4m turnover. The operating loss for the period was €716k.

 

Investment and Future Focus

Despite the loss the company has continued to prioritise investment in product development and market diversification. The management team remains committed to strengthening our core offerings and positioning

the company for future industry growth and innovation on a global scale.

 

Customer Base

The company is dedicated to serving customers worldwide.

 

The company is putting effort into diversifying the somewhat concentrated user base in North America by introducing new payment methods in the rest of the world, and by strengthening its marketing and search engine optimisation efforts in Europe and other markets.

 

Competition

The cryptocurrency industry, being a dynamic and rapidly evolving industry, attracts significant talent and fosters competitiveness. Moreover, companies that operate primarily in the 'traditional' economy are making efforts to start offering crypto products and services.

Paybis retains a strong competitive advantage due to its extensive experience and expertise. Paybis promotes a culture of continuous learning and innovation enabling us to retain our leadership position.

 

Human Capital

The company recognises the importance of key individuals to its operations. The loss of any one of these could potentially adversely affect business performance.

 

To mitigate the risk, the company places significant emphasis on employee retention. Our strategy includes offering competitive salaries, providing non-cash benefits such as paid lunches and additional vacation days, covering training and tuition fees and offering stock options.

 

 

On behalf of the board

I Isers
Director
30 January 2025
PAYBIS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the company and group continued to be that of crypto asset trading services.

Results and dividends

The results for the year are set out on page 10. page 8.

Ordinary dividends were paid amounting to €206,291. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

 

I Isers

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

PAYBIS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
On behalf of the board
I Isers
Director
30 January 2025
PAYBIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PAYBIS LIMITED
- 5 -
Opinion

We have audited the financial statements of Paybis Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 and 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our 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.

Opinions on other matters prescribed by the Companies Act 2006

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

PAYBIS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAYBIS LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

PAYBIS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAYBIS LIMITED
- 7 -
Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our 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 auditor's 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.

Christopher Mantel (Senior Statutory Auditor)
For and on behalf of Alliotts LLP, Statutory Auditor
Chartered Accountants
Manfield House
1 Southampton Street
London
WC2R 0LR
30 January 2025
PAYBIS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
Notes
Turnover
3
31,372,755
18,583,035
Cost of sales
(23,009,804)
(9,829,635)
Gross profit
8,362,951
8,753,400
Administrative expenses
(9,078,820)
(9,123,079)
Operating loss
4
(715,869)
(369,679)
Interest receivable and similar income
7
62
-
0
Interest payable and similar expenses
8
(5)
(261)
Loss before taxation
(715,812)
(369,940)
Tax on loss
9
(21,192)
-
0
Loss for the financial year
(737,004)
(369,940)
Loss for the financial year is all attributable to the owner of the parent company.
PAYBIS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Loss for the year
(737,004)
(369,940)
Other comprehensive income
Currency translation loss taken to retained earnings
(1,771)
-
0
Total comprehensive income for the year
(738,775)
(369,940)
Total comprehensive income for the year is all attributable to the owner of the parent company.
PAYBIS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
Fixed assets
Tangible assets
11
36,329
57,551
Current assets
Stocks
14
659,007
1,307,819
Debtors
15
5,348,458
5,012,659
Cash at bank and in hand
265,872
945,752
6,273,337
7,266,230
Creditors: amounts falling due within one year
16
(1,536,235)
(1,605,284)
Net current assets
4,737,102
5,660,946
Net assets
4,773,431
5,718,497
Capital and reserves
Called up share capital
18
117
117
Profit and loss reserves
4,773,314
5,718,380
Total equity
4,773,431
5,718,497

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 30 January 2025
30 January 2025
I Isers
Director
Company registration number SC533961 (Scotland)
PAYBIS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 11 -
2023
2022
Notes
Fixed assets
Tangible assets
11
36,329
57,551
Investments
12
4,937
3,819
41,266
61,370
Current assets
Stocks
14
-
1,307,819
Debtors
15
9,058,972
5,008,840
Cash at bank and in hand
182,689
945,752
9,241,661
7,262,411
Creditors: amounts falling due within one year
16
(3,717,561)
(1,605,284)
Net current assets
5,524,100
5,657,127
Net assets
5,565,366
5,718,497
Capital and reserves
Called up share capital
18
117
117
Profit and loss reserves
5,565,249
5,718,380
Total equity
5,565,366
5,718,497

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was €53,160 (2022 - €369,940 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 30 January 2025
30 January 2025
I Isers
Director
Company registration number SC533961 (Scotland)
PAYBIS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
Balance at 1 November 2021
117
6,488,302
6,488,419
Year ended 31 October 2022:
Loss and total comprehensive income
-
(369,940)
(369,940)
Dividends
10
-
(399,982)
(399,982)
Balance at 31 October 2022
117
5,718,380
5,718,497
Year ended 31 October 2023:
Loss for the year
-
(737,004)
(737,004)
Other comprehensive income:
Currency translation differences
-
(1,771)
(1,771)
Total comprehensive income
-
(738,775)
(738,775)
Dividends
10
-
(206,291)
(206,291)
Balance at 31 October 2023
117
4,773,314
4,773,431
PAYBIS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
Balance at 1 November 2021
117
6,488,302
6,488,419
Year ended 31 October 2022:
Loss and total comprehensive income for the year
-
(369,940)
(369,940)
Dividends
10
-
(399,982)
(399,982)
Balance at 31 October 2022
117
5,718,380
5,718,497
Year ended 31 October 2023:
Profit and total comprehensive income
-
53,160
53,160
Dividends
10
-
(206,291)
(206,291)
Balance at 31 October 2023
117
5,565,249
5,565,366
PAYBIS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
2023
2022
Notes
Cash flows from operating activities
Cash (absorbed by)/generated from operations
20
(159,816)
1,755,661
Interest paid
(5)
(261)
Income taxes paid
(306,126)
(1,272,367)
Net cash (outflow)/inflow from operating activities
(465,947)
483,033
Investing activities
Purchase of tangible fixed assets
(5,933)
(40,222)
Interest received
62
-
0
Net cash used in investing activities
(5,871)
(40,222)
Financing activities
Dividends paid to equity shareholders
(206,291)
(399,982)
Net cash used in financing activities
(206,291)
(399,982)
Net (decrease)/increase in cash and cash equivalents
(678,109)
42,829
Cash and cash equivalents at beginning of year
945,752
902,923
Effect of foreign exchange rates
(1,771)
-
0
Cash and cash equivalents at end of year
265,872
945,752
PAYBIS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
2023
2022
Notes
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(1,367,929)
1,758,461
Interest paid
(5)
(261)
Income taxes paid
(284,934)
(1,272,367)
Net cash (outflow)/inflow from operating activities
(1,652,868)
485,833
Investing activities
Proceeds from disposal of business
1,000,000
-
0
Purchase of tangible fixed assets
(5,933)
(40,222)
Purchase of subsidiaries
(1,118)
(2,800)
Interest received
103,147
-
0
Net cash generated from/(used in) investing activities
1,096,096
(43,022)
Financing activities
Dividends paid to equity shareholders
(206,291)
(399,982)
Net cash used in financing activities
(206,291)
(399,982)
Net (decrease)/increase in cash and cash equivalents
(763,063)
42,829
Cash and cash equivalents at beginning of year
945,752
902,923
Cash and cash equivalents at end of year
182,689
945,752
PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
1
Accounting policies
Company information

Paybis Limited (“the company”) is a private company limited by shares domiciled and incorporated in Scotland. The registered office is 1 West Regent Street, Glasgow, G2 1RW.

 

The group consists of Paybis Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in euro, which is the presentational currency of the company. The functional currency has been determined to be united states dollars (USD) in line with applicable accounting standards. Monetary amounts in these financial statements are rounded to the nearest €.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Paybis Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

Subsidiaries not considered material to the group have been excluded from these consolidated financial statements. Consequently the results of Paybis Latvia SIA and Paybis Ukraine LLC have been excluded.

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover represents the invoiced value of goods and services supplied by the company, net of value added tax and other sales related taxes.

 

Turnover is recognised on a net basis as the company acts as an agent to facilitate the execution of crypto asset trade transactions by its customers.

 

Net revenue earned on crypto assets trade transactions is recognised at the point of delivery of crypto assets to the crypto asset wallets.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers
33% - Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Crypto assets held at reporting period end are translated at the market rates of exchange prevailing and published by crypto trading exchanges on the reporting period end date.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

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

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Chargebacks received

In determining the amounts receivable from payment providers relating to chargebacks withheld, management has determined the amounts that have yet to be received based on the total number of open chargebacks as notified by the provider and managements estimate of those that have already been received.

3
Turnover and other revenue
2023
2022
Turnover analysed by class of business
Commission on cryptocurrency transactions
31,372,755
18,583,035
2023
2022
Turnover analysed by geographical market
United Kingdom
1,070,052
511,609
Rest of Europe
6,247,024
2,136,860
Rest of the World
24,055,679
15,934,566
31,372,755
18,583,035
2023
2022
Other revenue
Interest income
62
-
PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
Exchange losses
212,782
264,350
Fees payable to the group's auditor for the audit of the group's financial statements
65,524
58,890
Depreciation of owned tangible fixed assets
27,155
23,387
Operating lease charges
83,829
82,031
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
5
4
5
4
Staff
45
49
45
49
Total
50
53
50
53

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
Wages and salaries
3,175,596
2,439,492
3,161,267
2,439,492
Social security costs
613,808
548,750
612,615
548,750
Pension costs
32,165
39,968
32,165
39,968
3,821,569
3,028,210
3,806,047
3,028,210
6
Directors' remuneration
2023
2022
Remuneration for qualifying services
174,927
150,087
7
Interest receivable and similar income
2023
2022
Interest income
Interest on bank deposits
62
-
0
PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
7
Interest receivable and similar income
(Continued)
- 23 -
2023
2022
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
62
-
8
Interest payable and similar expenses
2023
2022
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
5
261
9
Taxation
2023
2022
Current tax
Foreign corporation tax on profits for the current period
21,192
-
0

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
Loss before taxation
(715,812)
(369,940)
Expected tax credit based on the standard rate of corporation tax in the UK of 22.50% (2022: 19.00%)
(161,058)
(70,289)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
1,518
Tax effect of utilisation of tax losses not previously recognised
(16,736)
-
0
Unutilised tax losses carried forward
-
0
71,970
Change in unrecognised deferred tax assets
8,852
(3,199)
Other permanent differences
225,000
-
0
Effect of overseas tax rates
(34,866)
-
0
Taxation charge
21,192
-

There are unutilised UK tax losses of €351,431 carried forward, no deferred tax asset has been recognised in this regard.

10
Dividends
2023
2022
Recognised as distributions to equity holders:
Final paid
206,291
399,982
PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
11
Tangible fixed assets
Group
Computers
Cost
At 1 November 2022
88,809
Additions
5,933
At 31 October 2023
94,742
Depreciation and impairment
At 1 November 2022
31,258
Depreciation charged in the year
27,155
At 31 October 2023
58,413
Carrying amount
At 31 October 2023
36,329
At 31 October 2022
57,551
Company
Computers
Cost
At 1 November 2022
88,809
Additions
5,933
At 31 October 2023
94,742
Depreciation and impairment
At 1 November 2022
31,258
Depreciation charged in the year
27,155
At 31 October 2023
58,413
Carrying amount
At 31 October 2023
36,329
At 31 October 2022
57,551
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
Investments in subsidiaries
13
-
0
-
0
4,937
3,819
PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
12
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Cost or valuation
At 1 November 2022
3,819
Additions
1,118
At 31 October 2023
4,937
Carrying amount
At 31 October 2023
4,937
At 31 October 2022
3,819
13
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

 

Paybis Poland Sp. z o.o is a new subsidiary that was incorporated up in the year.

 

Paybis USA Ltd was not material in the period ended 31 October 2022 and therefore was not included in the consolidated financial statements in that period. For the year ended 31 October 2023 this entity is now considered material and has been included in these consolidated financial statements.

 

Paybis Latvia SIA and Paybis Ukraine LLC are both dormant at the year ended 31 October 2023 and are not material to the group financial statements and have therefore been excluded from these consolidated financial statements.

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Paybis Poland Sp. z o. o
Hoza 86/210, Warsaw, 00-682
Ordinary
100.00
Paybis USA Ltd
3511 Silverside Road, Suite 105, City of Wilmington, County of New Castle, 19810, Delaware, USA
Ordinary
100.00
Paybis Latvia SIA
Strelnieku iela 8-81, Riga, LV-1010, Latvia
Ordinary
100.00
Paybis Ukraine LLC`
Office 1, Building 63, Zvirinetska St, Kyiv, Ukraine
Ordinary
100.00
14
Stocks
Group
Company
2023
2022
2023
2022
Finished goods and goods for resale
659,007
1,307,819
-
0
1,307,819
PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
Trade debtors
4,773,712
4,918,759
3,532,300
2,988,125
Corporation tax recoverable
73,268
-
0
73,268
-
0
Amounts owed by group undertakings
-
-
5,440,943
1,930,634
Other debtors
479,810
54,203
6,390
50,384
Prepayments and accrued income
21,668
39,697
6,071
39,697
5,348,458
5,012,659
9,058,972
5,008,840
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Trade creditors
459,806
821,233
456,881
821,233
Amounts owed to group undertakings
-
0
1,019
2,186,510
1,019
Corporation tax payable
-
0
211,666
-
0
211,666
Other taxation and social security
238,277
151,008
237,650
151,008
Other creditors
153,586
128,152
151,954
128,152
Accruals and deferred income
684,566
292,206
684,566
292,206
1,536,235
1,605,284
3,717,561
1,605,284
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
32,165
39,968

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

18
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
Issued and fully paid
Ordinary shares of €1 each
100
100
117
117
PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 27 -
19
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
Within one year
17,237
-
-
-
17,237
-
-
-
20
Cash (absorbed by)/generated from group operations
2023
2022
Loss after taxation
(737,004)
(369,940)
Adjustments for:
Taxation charged
21,192
-
0
Finance costs
5
261
Investment income
(62)
-
0
Depreciation and impairment of tangible fixed assets
27,155
23,387
Movements in working capital:
Decrease/(increase) in stocks
648,812
(702,246)
(Increase)/decrease in debtors
(262,531)
9,985,718
Increase/(decrease) in creditors
142,617
(7,181,519)
Cash (absorbed by)/generated from operations
(159,816)
1,755,661
PAYBIS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
21
Cash (absorbed by)/generated from operations - company
2023
2022
Profit/(loss) after taxation
53,160
(369,940)
Adjustments for:
Finance costs
5
261
Investment income
(103,147)
-
0
Gain on disposal of business
(1,000,000)
-
Depreciation and impairment of tangible fixed assets
27,155
23,387
Movements in working capital:
Decrease/(increase) in stocks
1,307,819
(702,246)
(Increase)/decrease in debtors
(3,976,864)
9,988,518
Increase/(decrease) in creditors
2,323,943
(7,181,519)
Cash (absorbed by)/generated from operations
(1,367,929)
1,758,461
22
Analysis of changes in net funds - group
1 November 2022
Cash flows
Exchange rate movements
31 October 2023
Cash at bank and in hand
945,752
(678,109)
(1,771)
265,872
23
Analysis of changes in net funds - company
1 November 2022
Cash flows
31 October 2023
Cash at bank and in hand
945,752
(763,063)
182,689
2023-10-312022-11-01falsefalseCCH SoftwareCCH Accounts Production 2024.301I IsersfalseSC533961bus:Consolidated2022-11-012023-10-31SC5339612022-11-012023-10-31SC533961bus:RegisteredOffice2022-11-012023-10-31SC533961bus:Director12022-11-012023-10-31SC5339612023-10-31SC533961bus:Consolidated2023-10-31SC533961bus:Consolidated2021-11-012022-10-31SC5339612021-11-012022-10-31SC533961core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-11-012023-10-31SC533961core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-11-012022-10-31SC533961bus:Consolidated2022-10-31SC5339612022-10-31SC533961core:ComputerEquipmentbus:Consolidated2023-10-31SC533961core:ComputerEquipmentbus:Consolidated2022-10-31SC533961core:ComputerEquipment2023-10-31SC533961core:ComputerEquipment2022-10-31SC533961core:ShareCapitalbus:Consolidated2023-10-31SC533961core:ShareCapitalbus:Consolidated2022-10-31SC533961core:ShareCapital2023-10-31SC533961core:ShareCapital2022-10-31SC533961core:RetainedEarningsAccumulatedLosses2023-10-31SC533961core:ShareCapitalbus:Consolidated2021-10-31SC5339612021-10-31SC533961core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-10-31SC533961core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-10-31SC533961core:ShareCapital2021-10-31SC533961core:RetainedEarningsAccumulatedLosses2021-10-31SC533961core:RetainedEarningsAccumulatedLosses2022-10-31SC533961bus:Consolidated2021-10-31SC533961core:ComputerEquipment2022-11-012023-10-31SC533961core:UKTaxbus:Consolidated2022-11-012023-10-31SC533961core:UKTaxbus:Consolidated2021-11-012022-10-31SC533961bus:Consolidated12022-11-012023-10-31SC533961bus:Consolidated12021-11-012022-10-31SC533961core:ComputerEquipmentbus:Consolidated2022-10-31SC533961core:ComputerEquipment2022-10-31SC533961core:ComputerEquipmentbus:Consolidated2022-11-012023-10-31SC533961core:CurrentFinancialInstruments2023-10-31SC533961core:CurrentFinancialInstruments2022-10-31SC533961core:CurrentFinancialInstrumentsbus:Consolidated2023-10-31SC533961core:CurrentFinancialInstrumentsbus:Consolidated2022-10-31SC533961core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-10-31SC533961core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-10-31SC533961core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-31SC533961core:CurrentFinancialInstrumentscore:WithinOneYear2022-10-31SC533961bus:PrivateLimitedCompanyLtd2022-11-012023-10-31SC533961bus:FRS1022022-11-012023-10-31SC533961bus:Audited2022-11-012023-10-31SC533961bus:ConsolidatedGroupCompanyAccounts2022-11-012023-10-31SC533961bus:FullAccounts2022-11-012023-10-31xbrli:purexbrli:sharesiso4217:GBP