Registered number: 13882980
SIDEKICK MONEY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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SIDEKICK MONEY LTD
COMPANY INFORMATION
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21-33 Great Eastern Street
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Chartered Accountants & Statutory Auditor
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SIDEKICK MONEY LTD
CONTENTS
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Independent auditors' report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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SIDEKICK MONEY LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Introduction and Principal Activities
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Sidekick Money Ltd (“Sidekick”) was established to redefine wealth management for the mass affluent, delivering tailored financial products and tools traditionally reserved for the ultra-wealthy. By focusing on transparency, accessibility, and service, Sidekick empowers a digitally native, aspirational customer base to unlock their financial potential.
Our Purpose
Sidekick exists to bridge the gap between traditional private banking services and robo-advisors, to serve the unmet needs of the mass affluent. The company’s mission is to democratise wealth-building tools, offering sophisticated products that support long-term financial growth while fostering trust and inclusivity.
Our Business Model
Sidekick’s business model combines high-quality savings, investment, and lending solutions designed to meet the evolving needs of its customers. Key elements include:
∙Product Breadth: A diverse range of offerings, from passive investment portfolios and tax-efficient VCTs to high-yield savings accounts.
∙Customer-Centric Technology: An intuitive, digital-first platform prioritising transparency and ease of use.
∙Tailored Solutions: Personalisation features, such as Direct Indexing and ESG customisations, align with individual goals and values.
Strategic Objectives for FY24
During the financial year ending 27 September 2024, Sidekick focused on:
1.Building Foundations for Growth:
°Established robust compliance, risk management, and onboarding systems.
°Partnered with key third-party providers to support a scalable operational platform.
2.Launching Foundational Products:
°Flagship (Active Equities): A high-conviction portfolio designed for performance-focused investors.
°Lombard Lending: A liquidity solution allowing customers to access funds without disrupting long-term investments.
°Cash Management: A high-yield savings product offering competitive rates with FSCS protection.
3.Engaging Early Adopters:
°Introduced educational content, such as Market Pulse, onboarding calls, webinars, and in-person events, to create a community of engaged early users.
Values Driving Success
Sidekick’s core values guide its mission and operations:
1.Build Trust and Respect: Transparent communication and fairness form the foundation of customer relationships.
2.Knock Down Barriers: Innovative solutions and accessibility open financial opportunities to a broader audience.
3.Be Bold: A commitment to pushing boundaries drives product development and customer engagement.
These values have been designed for use both internally and with our external customers in mind.
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SIDEKICK MONEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Disclosure on Carbon Reporting Exemption
In accordance with the relevant UK regulations, the Company have opted to utilise the large entity exemption for carbon and energy reporting. As the total estimated energy usage is below the threshold of 40,000 kWh for the reporting period, carbon and energy disclosures are not required within these financial statements. This exemption has been applied in alignment with the applicable statutory framework, which allows large entities to exclude detailed carbon reporting when energy usage falls below the stated threshold.
The financial year ending 27 September 2024 marked Sidekick Money’s transition from a concept to an operational business. Focused on laying a foundation for growth, the company achieved significant milestones in product development, customer acquisition, and operational readiness. These efforts positioned Sidekick for a rapid transformation post-year-end.
Financial and Operational Highlights
∙Registered Users: Over 2,000 users signed up, reflecting strong interest from Sidekick’s target audience.
∙Multi-Product Uptake: 40% of funded customers engaged with both savings and investment products, demonstrating effective cross-sell strategies.
∙Operational Efficiency: Sidekick delivered a broad product set and encouraging user growth with a lean team structure.
Revenue for the year remained nascent, as Sidekick strategically waived fees for founding members and chose not to charge AUM fees for its active portfolio. This decision reflected the company’s priority of building trust, validating its business model, and onboarding customers without friction.
Core Products in FY24
1.Flagship (Active Equities): A high-conviction, actively managed portfolio designed to outperform benchmarks.
2.Lombard Lending: Portfolio-backed lending that provided liquidity while preserving long-term investments.
3.Cash Management: A market-leading product offering rates up to 5.34% AER (variable), which served as a key driver of customer acquisition.
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SIDEKICK MONEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Principal risks and uncertainties
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Sidekick operates in a dynamic and regulated environment, requiring a proactive approach to risk management. The company’s Risk Management Framework ensures risks are identified, assessed, and mitigated effectively across financial, operational, regulatory, and market domains.
Key Risks and Mitigations
1.Financial Risks:
°Market Volatility: Diversification across asset classes and clear communication with customers mitigate the impact of external market factors.
°Counterparty Risk: Stringent due diligence ensures reliability among third-party providers.
2.Operational Risks:
°Technology Resilience: Regular security audits and investments in scalable infrastructure reduce risks of outages or breaches.
°Data Privacy: Advanced encryption and compliance with GDPR safeguard sensitive customer data.
3.Regulatory Risks:
°Compliance with FCA Regulations: Dedicated compliance personnel ensure adherence to evolving standards, including Consumer Duty obligations.
°Complex Products: Actively managed public equities and alternative investments such as VCTs are supported by robust client classification, suitability and governance processes.
4.Market and Business Risks:
°Macroeconomic Environment: Diversified product offerings and customer education mitigate the impact of inflation, interest rate changes, and economic slowdowns.
°Customer Retention: Bundled incentives and competitive rates encourage long-term engagement and cross-product adoption.
5.Emerging Risks:
°Technological Disruption: Monitoring advancements, such as AI and blockchain, ensures Sidekick remains competitive.
°Reputation Risk: Proactive communication and high service standards minimise potential reputational damage.
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SIDEKICK MONEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Governance and oversight are integral to Sidekick Money’s operations, ensuring accountability, compliance, and alignment with its mission to democratise wealth-building. Sidekick’s governance framework balances innovation with regulatory obligations, safeguarding the interests of customers, regulators, and shareholders.
Board of Directors
The Board of Directors provides strategic direction and oversight, focusing on long-term objectives, risk management, and the evaluation of financial and operational performance. Comprising experts in fintech, investment management, compliance, and technology, the Board ensures alignment with the company’s mission and stakeholder interests.
Key Committees
Specialised committees, such as the Board Risk and Compliance Committee and the Product Governance Forum, support the governance framework by providing targeted oversight. These committees ensure alignment with regulatory requirements, effective risk management, and the delivery of products that meet customer needs.
Risk oversight
Risk oversight is embedded into Sidekick’s governance structure. Regular assessments, escalation processes, and integration of risk considerations into decision-making ensure that financial, operational, and regulatory risks are effectively managed.
Leadership Accountability
Strong leadership underpins Sidekick’s governance, with the Executive Leadership Team translating strategic goals into actionable initiatives and independent directors providing objective oversight. Together, these efforts position Sidekick for sustainable growth while maintaining high standards of transparency and responsibility.
Consumer Duty and Customer Outcomes
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Sidekick embeds the FCA’s Consumer Duty principles across its operations, ensuring fairness, transparency, and good customer outcomes.
Customer-Centric Initiatives
∙Product Design: Suitability assessments ensure products meet customer needs and deliver long-term value.
∙Transparent Communication: Sidekick prioritises clarity around fees, risks, and expected outcomes.
∙Education and Support: Initiatives such as Market Pulse and multi-channel customer support empower users to make informed decisions.
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SIDEKICK MONEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Streamlined Eenergy and Carbon Reporting (SECR)
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At Sidekick Money, we are committed to sustainability and efficient use of resources. As a tenant in a shared coworking space at Fora Great Eastern Street, we do not have direct control over energy usage or individual utility bills. However, we have carefully estimated our energy consumption based on typical usage patterns.
Office Energy Consumption
Our London office is used by 6–8 team members on average, working three days a week, with 2–3 staff regularly working five days. Our equipment includes MacBook Pro laptops, 10 monitors, and a small printer. The office benefits from automated lighting and a sustainable heating and cooling system controlled by the building. Based on these factors, we estimate the office energy usage to be approximately 3,100 kWh per year, broken down as follows:
∙Laptops: MacBook Pros consume ~60W. With typical use by 6–8 staff for three days a week and 2–3 staff for five days, this equates to ~800 kWh annually.
∙Monitors: Ten monitors (~30W each), used under similar patterns, add ~600 kWh annually.
∙Printer: Minimal usage contributes an estimated 100 kWh annually.
∙Shared heating, cooling, and lighting: Efficient systems in the coworking space are estimated to contribute ~1,600 kWh annually.
Remote Work Energy Consumption
The rest of our team works remotely. For our full team of 15–16 people, remote work adds an estimated 1,500 kWh annually, primarily from laptop use and home lighting.
Travel Energy Consumption
∙Quarterly Team Gatherings: One team member flies round-trip from Stockholm to London four times a year, adding ~0.8 MWh (800 kWh) annually.
∙CEO Business Trips: Up to five flights annually (a mix of European and US trips) contribute ~2.75 MWh (2,750 kWh).
This brings our total travel energy consumption to approximately 3,550 kWh per year.
Total Estimated Energy Usage
When combining office use, remote work, and travel, we estimate our total annual energy consumption to be 8,150 kWh per year, well below the 40,000 kWh threshold for Streamlined Energy and Carbon Reporting (SECR). This qualifies Sidekick Money as a low energy user under these regulations.
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SIDEKICK MONEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Directors' statement of compliance with duty to promote the success of the Company
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The directors of Sidekick Money Ltd acknowledge their duty under Section 172 of the Companies Act 2006 to act in good faith to promote the success of the company for the benefit of its shareholders. In fulfilling this duty, the directors consider the long-term implications of their decisions and engage with key stakeholders, including shareholders, clients, suppliers, staff, and the environment.
Shareholders
Shareholders provide vital capital and strategic guidance to support Sidekick’s growth. The directors ensure alignment with shareholder interests through:
∙Regular Updates: Sharing performance and strategy insights via board meetings and reports.
∙Long-Term Alignment: Making decisions that prioritise sustainable growth and value creation.
∙Accountability: Establishing a governance framework that ensures shareholder interests are represented and protected in all major decisions.
Clients
Sidekick’s mission to democratise wealth-building puts clients at the centre of its operations. The directors focus on:
∙Customer-Centric Design: Creating products tailored to financial goals and ethical values.
∙Transparency: Ensuring clarity on fees, risks, and performance to build trust.
∙Education: Empowering clients through accessible, high-quality financial education.
Suppliers
Suppliers play a crucial role in Sidekick’s service delivery. The directors engage with suppliers through:
∙Due Diligence: Conducting rigorous evaluations to ensure suppliers meet high standards of reliability, financial stability, and security.
∙Collaboration: Working closely with suppliers to innovate and improve the customer experience.
Staff
The company’s success depends on its talented team. The directors foster a supportive workplace through:
∙Employee Development: Investing in training and professional development opportunities to help staff grow and succeed.
∙Workplace Inclusivity: Promoting a collaborative culture that values diverse perspectives and encourages innovation.
∙Wellbeing and Engagement: Supporting employee wellbeing through flexible working arrangements, mental health resources, and regular team engagement activities.
∙Recognition and Rewards: Offering competitive compensation and recognising contributions that drive the company’s success.
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SIDEKICK MONEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Non-financial KPIs
To support our mission, and to ensure the business embodies and delivers on its values and regulatory responsibilities, Sidekick tracks a number of customer and staff KPIs. These include staff wellbeing (weekly pulse), client engagement and retention, and customer satisfaction. These metrics are regularly reviewed by Sidekick management, with a subset also reporting directly to the Board on a monthly basis.
The Environment
While Sidekick’s direct environmental impact is low, sustainability is integrated into its operations. Actions include:
ESG Integration: Rolling out environmentally aligned investment options.
Reducing Carbon Footprint: Minimising reliance on physical resources through cloud-based infrastructure.
Sustainability Focus: Continuously improving practices to reduce the company’s impact.
This report was approved by the board and signed on its behalf.
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SIDEKICK MONEY LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 27 SEPTEMBER 2024
The directors present their report and the financial statements for the year ended 27 September 2024.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £2,761,014 (2023 - loss £1,147,382).
No dividends were paid during the year (2023: £Nil). The directors do not recommend payment of a final dividend.
The directors who served during the year were:
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SIDEKICK MONEY LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Following its foundational year, Sidekick Money is poised for a transformative phase of growth, innovation, and market differentiation. With a mission to democratise wealth-building for the mass affluent, the company’s strategic focus for 2025 centres on expanding its product suite, enhancing customer engagement, and delivering operational excellence to solidify its position as a trusted financial partner.
Market Context and Strategic Positioning
The wealth management landscape presents a compelling opportunity for Sidekick, driven by shifting demographics and evolving customer demands:
∙Generational Wealth Transfer: £327 billion is expected to transfer to younger generations by 2032, creating opportunities to engage affluent, tech-savvy investors with modern financial tools.
∙Under-Served Mass Affluent: Customers with investable wealth of £100,000–£250,000 demand personalised solutions that private banks often overlook.
Sidekick’s ability to combine accessibility, transparency, and high-quality products positions it uniquely in this evolving market.
Strategic Vision for 2025 and Beyond
To capitalise on these market opportunities, Sidekick’s strategic roadmap focuses on four key priorities:
1.Product Leadership: Expanding and refining Sidekick’s offerings to address a broad spectrum of financial needs, from savings and investments to alternatives and personalised solutions.
2.Operational Excellence: Leveraging technology, automation, and compliance frameworks to scale efficiently without compromising service quality.
3.Customer-Centric Growth: Building deeper relationships with existing customers while attracting new ones through tailored acquisition strategies and engagement initiatives.
4.Sustainable Financial Performance: Diversifying revenue streams with subscription services and optimising pricing to ensure fair value for customers while driving profitability.
Expanding the Product Suite
Product innovation remains the cornerstone of Sidekick’s growth strategy. Planned initiatives include:
∙Personalised Investments: Enhancing the public market offering with Custom Indexing and thematic baskets to cater to customers seeking alignment with their values.
∙Alternatives and Semi-Liquids: Introducing curated semi-liquid funds, private credit options, and expanded VCT offerings to meet demand for diversification beyond traditional assets.
Planned Series A Funding
A Series A round in July 2025 will support product development, marketing expansion, and operational scaling, ensuring Sidekick is equipped to meet growing demand.
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SIDEKICK MONEY LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
During the year, BKL Audit LLP were appointed to fill a casual vacancy.
Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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SIDEKICK MONEY LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIDEKICK MONEY LTD
We have audited the financial statements of Sidekick Money Ltd (the 'Company') for the year ended 27 September 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of 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:
∙give a true and fair view of the state of the Company's affairs as at 27 September 2024 and of its loss for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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SIDEKICK MONEY LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIDEKICK MONEY LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' responsibilities statement set out on page 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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SIDEKICK MONEY LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIDEKICK MONEY LTD (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiring of management and those charged with governance around actual and potential litigation and claims;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
∙Reviewing the general ledger in detail for all transactions with related parties;
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
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SIDEKICK MONEY LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SIDEKICK MONEY LTD (CONTINUED)
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
In accordance with the Companies Act 2006 the prior year financial statements were not audited. The comparative information in these financial statements are unaudited.
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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Wedge FCA (Senior statutory auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
27 January 2025
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SIDEKICK MONEY LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Loss for the financial year
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There was no other comprehensive income for 2024 (2023:£NIL).
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The notes on pages 19 to 29 form part of these financial statements.
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SIDEKICK MONEY LTD
REGISTERED NUMBER: 13882980
STATEMENT OF FINANCIAL POSITION
AS AT 27 SEPTEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 29 form part of these financial statements.
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SIDEKICK MONEY LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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Comprehensive income for the period
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Total comprehensive income for the period
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Shares issued during the year
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The notes on pages 19 to 29 form part of these financial statements.
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SIDEKICK MONEY LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
Cash flows from operating activities
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Loss for the financial year
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Depreciation of tangible assets
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(Increase)/decrease in amounts owed by participating ints
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Increase in amounts owed to groups
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Increase in amounts owed to participating ints
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Net cash generated from operating activities
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Cash flows from financing activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Purchase of fixed asset investments
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 19 to 29 form part of these financial statements.
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
The principal activity of Sidekick Money Ltd ("the Company") is that of dealing in financial asset management.
The Company is a private company limited by shares incorporated in England and Wales.
The principal place of business is Arnold House, 21-33 Great Eastern Street, London, England, EC2A 3EJ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The Company has taken advantage of the exemption not to produce consolidated financial statements on the basis that its only subsidiary undertaking, Sidekick Ventures Ltd, is immaterial.
The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for at least 12 months from the date of approval of these financial statements, and will be able to meet its liabilities as they fall due.
The directors are confident that the Company's access to working capital and future profit generation is sufficient to support the business in the foreseeable future, and accordingly, consider it appropriate to prepare the financial statements on a going concern basis.
With a Series A funding round expected in mid-2025, this injection of cash into the business will support product development, marketing expansion, and operational scaling, ensuring Sidekick is able to meet its obligations as they falls due.
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Revenue from the company in the financial year was derived from interest shared from 3rd parties and is recognised when:
- It is probable that economic benefits will flow to the company; and
- The amount of revenue can be measured reliably.
Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
.
No charge has been recognised in the Statement of Comprehensive Income as, in the opinion of the directors, the current year and cumulative charge are immaterial.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts owed by group undertakings, are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the year end and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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The operating loss is stated after charging:
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Other operating lease rentals
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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Fees payable to the Company's auditors in respect of:
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Taxation compliance services
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of £90,000 (2023 - £60,000).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £2,695 (2023 - £1,800).
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Charge for the year on owned assets
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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Rivington House, 82 Great Eastern Street, London, England, EC2A 3JF
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The aggregate of the share capital and reserves as at 27 September 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
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Aggregate of share capital and reserves
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On the basis of its immaterality to the Group, the Company has taken advantage of the exemption not to produce consolidated financial statements.
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Amounts owed by joint ventures and associated undertakings
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Prepayments and accrued income
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Amounts owed to other participating interests
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Accruals and deferred income
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Allotted, called up and fully paid
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2,010,776 (2023 - 1,383,161) Ordinary shares shares of £0.000010 each
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During the year, series seed ordinary shares were issued. 627,615 shares were issued, with an aggregate nominal value of £6.28.
Consideration received in relation to these shares totalled £4.5 million.
Share premium account
Includes all amounts paid over and above the nominal value of shares issued.
Profit and loss account
Includes all current and accumulated profits and losses.
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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The Company operates a share-based payment scheme for its key employees.
Certain employees are granted share options in the Company. The options are granted with a fixed exercise price, and are exercisable as follows:
Year one: 25%
Year two: 50%
Year three: 75%
Year four: 100%
A reconciliation of share option movements over the period to 27 September 2024 is shown below:
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Weighted average exercise price (pence)
2024
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Weighted average exercise price
(pence)
2023
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Outstanding at the beginning of the year
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Forfeited during the year
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Outstanding at the end of the year
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No charge has been recognised in the Statement of Comprehensive Income as, in the opinion of the directors, the current year and cumulative charge are immaterial.
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The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £26,075 (2023: £12,513). Contributions totalling £7,924 (2023: £5,008) were payable to the fund at the balance sheet date and are included in creditors.
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SIDEKICK MONEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 SEPTEMBER 2024
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Commitments under operating leases
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At 27 September 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Related party transactions
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Included in other creditors is an amount of £291 (2023: £1,110, included in other debtors) owed to the Directors of the Group.
Included in amounts owed to group undertakings is an amount of £1 (2023: £0) owed to the subsidiary, Sidekick Ventures Ltd.
Included in administration expenses is an amount of £195,292 (2023: £0) relating to a provision against an amount owed from a related party.
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There is no ultimate controlling party.
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