REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 26 AUGUST 2023 |
FOR |
COIN MINING CENTRAL LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 26 AUGUST 2023 |
FOR |
COIN MINING CENTRAL LTD |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 26 AUGUST 2023 |
Page |
Company information | 1 |
Strategic report | 2 |
Report of the directors | 5 |
Report of the independent auditors | 7 |
Income statement | 9 |
Balance sheet | 10 |
Statement of changes in equity | 11 |
Cash flow statement | 12 |
Notes to the cash flow statement | 13 |
Notes to the financial statements | 14 |
COIN MINING CENTRAL LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 26 AUGUST 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
7 St John's Road |
Harrow |
Middlesex |
HA1 2EY |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 26 AUGUST 2023 |
The directors present their strategic report for the year ended 26 August 2023. |
The directors present this report together with the audited financial statements of the company for the year ended 26th August 2023. |
Provided in this report, is an overview of the company's principal activities and performance aimed to communicate the strategy, objectives and measures in place to monitor the performance of the company. |
PRINCIPAL ACTIVITIES |
The principal activity of the company in the year under review was that of supplying ASIC miners, solutions and crypto stock. |
REVIEW OF BUSINESS |
During the year, company recorded an operating profit of £901,402 (2022: Loss £477,504). |
The company uses a number of financial and non-financial Key Performance Indicators (KPIs) to monitor the performance of the business on an ongoing basis. The financial KPIs include total turnover, total gross profit, pre-tax profit and a number of average metrics. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Risks and uncertainties facing the company include fluctuations in the crypto currency market and energy market with a direct effect on the cost of operations on the mining equipment. Although increased competition is also a potential risk, directors consider that the company's reputation in the market remains strong and this will allow the company to continue as a recognised supplier in the global market in the medium term. |
Operational Risks |
Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, colleagues, or systems, or from external causes, whether deliberate, accidental, or natural. This also includes risks from changes in legislation, regulation, or currency.The company continuously reviews and improves its internal processes, systems, and controls to minimize the risk of operational failures. |
Regulatory Risks |
Regulatory risk is the risk that the company fails to comply with the increasingly complex regulatory environment in which it operates. The regulatory landscape for crypto-currencies is evolving, and changes in regulations can impact the business operations and compliance requirements. The company maintains a proactive approach to regulatory compliance, staying informed about the changes and practices accordingly |
Market Volatility: |
The crypto-currency market is highly volatile, with significant fluctuations that can affect the revenue and profitability of the company. The company actively monitors market trends and implement risk management strategies to mitigate the impact of fluctuations. |
Technology failure, data loss and cyber security: |
A prolonged loss of critical systems could inhibit the ability of the company to be able to operate effectively leading to loss of revenues and additional costs. To mitigate this, the company secures its data relating to crypto-currencies on external nano-ledgers. The information technology and security procedures are regularly reviewed, and the company seeks to apply best practice within these areas. |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 26 AUGUST 2023 |
Financial risks: |
The directors have overall responsibility for determining the company's risk management objectives and policies. The overall objective of the directors is to set policies that seek to reduce risk as far as possible without unduly affecting the company's competitiveness and flexibility. The financial risks are managed based on policies and procedures adopted by the board. |
The company is exposed to the following financial risks: |
- Foreign exchange risk |
- Credit risk |
- Liquidity risk |
Credit Risks |
Credit risk represents the possibility that the company could suffer a loss from a counterparty failing to meet its obligations. This risk is managed through robust client account and vetting procedures, as well as by limiting exposure to concentration risk. |
Liquidity Risks |
Liquidity risk is the risk that the company is unable to raise sufficient funding to meet its obligations. These risks are closely monitored and controlled through the company's risk framework, day-to-day management, periodic business committee meetings, and quarterly management meetings. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The directors have identified the financial risk management objectives minimizing any threats to the continued financial well-being and stability of the company. They seek to achieve this through maintaining a system of internal controls, sourcing products and services at the most competitive prices, and maintaining professional relationships with customers. |
The directors are responsible for the company’s system of internal control and for evaluating its effectiveness. This system is designed to manage success in achieving business objectives and to ensure the products have undergone the required safety checks. |
There have not been any changes to the company’s exposure to financial risks. The manner in which this is managed and measured is with the directors continuing to follow the financial and crypto currency markets closely. |
DEVELOPMENT AND PERFORMANCE |
The company is well established as one of the well recognised suppliers of crypto mining equipment with worldwide market share of 5%. Although turnover dropped significantly during the year due to the downward trend of the crypto currency market, GP margins strengthened in respect of the mining equipment sales. Company overheads are kept to a minimum by the directors and consequently the company's net profits were strong before accountancy gains on crypto currency movements. Directors believe its sales will improve with the upturn of the crypto currency market. |
KEY PERFORMANCE INDICATORS |
Management closely monitors its financial positions and performance of the Company. |
Some key financial performance indicators that reflect Company’s profitability, liquidity and leverage are analyzed below: |
Ratio | 2023 | 2022 |
Gross margin (Gross profit/Revenue) | 4.42% | 16.19% |
Liquidity ratio (Current Assets/Current Liabilities) | 8.61 | 0.95 |
Profit before tax (Net (loss)/profit before tax/Sales) | 3.56% | (1.38% | ) |
Profit after tax (Net (loss)/profit after tax/Sales) | 6.61% | (5.24% | ) |
Included in the reported KPIs are inventories of mining equipment and crypto currency assets. The directors believe the KPIs stated are in line with their expectations. |
FUTURE PLANS |
The company believes the market for crypto mining equipment remains strong. The directors are currently looking to recruiting a CEO whose task will be to grow the marketing operations of the company with a view to increase its customer base and sales. |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 26 AUGUST 2023 |
ENVIRONMENTAL MATTERS |
Cryptocurrency mining is energy intensive and therefore has led to an increase in electricity usage. With government legislations passed across the globe for net-zero targets encouraging increased reliance on non-fossil fuels, the directors believe, in the medium term, the intensive need in energy will be counter-balanced by the increased provision of non-fuel energy . |
ON BEHALF OF THE BOARD: |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 26 AUGUST 2023 |
The directors present their report with the financial statements of the company for the year ended 26 August 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of supplying ASIC miners, solutions and crypto stock. |
DIVIDENDS |
During the year, no dividends were declared and paid (2022: £835 000). |
DIRECTORS |
The directors shown below have held office during the period from 27 August 2022 to the date of this report. |
B Finder |
G Finder |
GOING CONCERN |
Directors have assessed the company's requirements for the foreseeable future and its ability to meet its liabilities from liquid assets when they fall due. The directors are confident that sufficient funds will be available to enable administrative operations to continue at a sustainable level for a period of at least 12 months from the date of approval of these financial statements. |
The company therefore continues to adopt the going concern basis in preparing these financial statements. |
The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern. |
TRANSFER FROM INTANGIBLE ASSETS TO STOCK |
Intangible assets brought forward of £5,951,525 were transferred to opening stock at the start of the year. Directors concluded that crypto currency transactions constitute a trade as the essence of trading is the buying and selling of assets. These transactions are made with a view to a profit and not held as investment as they do not give rise to income. They are held as a hedge against possible devaluation of FIAT currencies including Sterling and with the intention of re-selling at a profit. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic report, the Report of the directors 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 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 and then apply them consistently; |
- | make judgements 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 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 26 AUGUST 2023 |
AUDITORS |
The auditors, Macalvins Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COIN MINING CENTRAL LTD |
Opinion |
We have audited the financial statements of Coin Mining Central Ltd (the 'company') for the year ended 26 August 2023 which comprise the Income statement, Other comprehensive income, Balance sheet, Statement of changes in equity, Cash flow statement and Notes to the cash flow statement, Notes to the financial statements, 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 26 August 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic report and the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In 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 Report of the directors. |
We have nothing to report in respect of the following matters where 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COIN MINING CENTRAL LTD |
Responsibilities of directors |
As explained more fully in the Statement of directors' responsibilities set out on page five, 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 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the auditors 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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines above, to detect material misstatements in respect of irregularities, including fraud |
We obtained a general understanding of the company's legal and regulatory framework through inquiry of management in respect of their understanding of the relevant laws and regulations. We obtained an understanding of the policies and procedures in relation to compliance with relevant laws and regulations. |
We understand that the company complies with the framework through: |
1. Updating operating procedures, manuals, and internal controls as legal and regulatory requirement change; and |
2. The directors and management regularly evaluate the legal and regulatory risks facing the business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the auditors. |
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 a Report of the auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
7 St John's Road |
Harrow |
Middlesex |
HA1 2EY |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
INCOME STATEMENT |
FOR THE YEAR ENDED 26 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
901,402 | 5,297,936 |
Other operating income | ( |
) |
OPERATING PROFIT/(LOSS) | 5 | ( |
) |
Interest receivable and similar income |
956,572 | (477,504 | ) |
Interest payable and similar expenses | 6 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 7 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
BALANCE SHEET |
26 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 26 AUGUST 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 27 August 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 26 August 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 26 August 2023 |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 26 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Foreign exchange losses | ( |
) |
Interest received |
Tax paid |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | (2,509,374 | ) | 3,296 |
Share issue |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 2,327,938 |
Cash and cash equivalents at end of year | 2 | 505,723 | 1,667,390 |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 26 AUGUST 2023 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Foreign exchange losses | 23,105 | 5,790,891 |
Income tax expenses/deferred tax | 811,066 | - |
Finance costs | 13,045 | - |
Finance income | (55,170 | ) | - |
1,737,332 | 5,314,606 |
Decrease in stocks |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts: |
Year ended 26 August 2023 |
26.8.23 | 27.8.22 |
£ | £ |
Cash and cash equivalents | 505,723 | 1,667,390 |
Year ended 26 August 2022 |
26.8.22 | 27.8.21 |
£ | £ |
Cash and cash equivalents | 1,667,390 | 2,327,965 |
Bank overdrafts | ( |
) |
1,667,390 | 2,327,938 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 27.8.22 | Cash flow | At 26.8.23 |
£ | £ | £ |
Net cash |
Cash at bank | 1,667,390 | (1,161,667 | ) | 505,723 |
1,667,390 | ( |
) | 505,723 |
Total | 1,667,390 | (1,161,667 | ) | 505,723 |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 26 AUGUST 2023 |
1. | STATUTORY INFORMATION |
Coin Mining Central Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
The following principal accounting policies have been applied: |
Significant judgements and estimates |
In the application of the company'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 judgments, estimations and assumptions are evaluated at each reporting date and are based on historical experience as adjusted for the current market conditions and other factors. Management makes estimates and assumptions concerning the future in preparing the financial statements and the actual results will not always reflect the accounting estimates made. |
Valuation of stock |
Stock consists of various crypto trading as it is held for sale in the ordinary course of business. The stock is measured at the lower of cost and net realizable value. Furthermore, if the crypto currency's market value drops below its cost, it is written down to its net-realizable value. |
Turnover |
Turnover is recognized to the extent that it is probable that future economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must be met before turnover is recognized: |
1. The amount of turnover can be measured reliably. |
2. It is probable that the company will receive the consideration due under the contract. |
3. The stage of completion of the contract at the end of the reporting period can be measured reliably; and |
4. The costs incurred and the costs to complete the contract can be measured reliably. |
The company generates turnover from supplying ASIC miners and solutions as well as trading crypto currency in its ordinary course of business. |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 26 AUGUST 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Computer equipment | - |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical costs includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. |
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 recognized in profit and loss. |
Financial instruments |
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include 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. |
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 company 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 26 AUGUST 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling using average rates of exchange, including Cryptocurrencies which the company uses as a medium of exchange when buying and selling goods. |
Exchange differences are taken into account in arriving at the operating result. Other financial instruments are measured at fair value as at the balance sheet date with changes in their fair value recognised in the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
Crypto mining equipment (UK) | 584,471 | 4,820,799 |
Crypto mining equipment (Europ | 383,905 | 2,238,738 |
Crypto mining equipment (RoW) | 3,538,658 | 27,513,848 |
Crypto assets (RoW) | 22,020,990 | - |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Employee | 1 | 1 |
Director | 2 | 2 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 26 AUGUST 2023 |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Foreign exchange differences |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Other interest |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Tax carried back | (743,434 | ) | - |
Total current tax | ( |
) |
Deferred tax | ( |
) | ( |
) |
Tax on profit/(loss) | ( |
) |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of 1 each |
Final |
9. | INTANGIBLE FIXED ASSETS |
Intangible |
asset |
£ |
Cost |
At 27 August 2022 |
Reclassification/transfer | ( |
) |
At 26 August 2023 |
Amortisation |
At 27 August 2022 |
Reversal of impairments | ( |
) |
At 26 August 2023 |
Net book value |
At 26 August 2023 |
At 26 August 2022 |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 26 AUGUST 2023 |
10. | TANGIBLE FIXED ASSETS |
Computer |
equipment |
£ |
Cost |
At 27 August 2022 |
Additions |
At 26 August 2023 |
Depreciation |
At 27 August 2022 |
Charge for year |
At 26 August 2023 |
Net book value |
At 26 August 2023 |
At 26 August 2022 |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Crypto Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Director's current account | 2,506,078 | - |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Corporation tax payable |
Social security and other taxes |
VAT | 33,990 | 23,921 |
Other creditors |
Wages payable | - | 1,909 |
Director's current account | - | 3,296 |
Deferred income |
Accrued expenses |
14. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | - | 67,632 |
COIN MINING CENTRAL LTD (REGISTERED NUMBER: 11800885) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 26 AUGUST 2023 |
14. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 27 August 2022 |
Credit to Income statement during year | ( |
) |
Balance at 26 August 2023 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 100 | 100 |
16. | RESERVES |
Retained |
earnings |
£ |
At 27 August 2022 |
Profit for the year |
At 26 August 2023 |
17. | RELATED PARTY DISCLOSURES |
Included within debtors is an amount of £2,506,078 (2022: £3,296 CR) receivable from the directors of the company. The loan is interest free and is repayable on demand. |
18. | ULTIMATE CONTROLLING PARTY |
The company's is ultimately controlled by its directors who are also the shareholders of the company. |