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Registration number: 11972051

Penny Limited

Annual Report and Unaudited Abridged Financial Statements

for the Year Ended 31 May 2024

 

Penny Limited

Contents

Company Information

1

Directors' Report

2

Accountants' Report

3

Abridged Profit and Loss Account

4

Statement of Comprehensive Income

5

Abridged Balance Sheet

6 to 7

Statement of Changes in Equity

8

Notes to the Unaudited Abridged Financial Statements

9 to 16

 

Penny Limited

Company Information

Directors

Miss Vaida Narbutaite

Mr Daniel McPherson

Mr Paul Friedlander

Mr Mark Tuvey

Registered office

Archibald House
50-56 Wykes Bishop Street
Ipswich
IP3 0DT

Accountants

Liquid Friday Limited

 

Penny Limited

Directors' Report for the Year Ended 31 May 2024

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

Directors of the company

The directors who held office during the year were as follows:

Mr Adam Parker (Left the business 5 October 2023)

Miss Vaida Narbutaite

Mr Daniel McPherson

Mr Paul Friedlander (appointed 13 November 2023)

Mr Mark Tuvey (appointed 5 October 2023)

Principal activity

The principal activity of the company is The development and operation of technology led single invoice factoring.

Going concern

Notwithstanding the loss for the year and the net liabilites of the Company, the Directors believe that the company will be able to meet its liabilities as they fall due for at least 12 months from the date of approving the financial statements. This is on the basis of the preperation of medium term forecasts and cashflow projections which demonstrate that under a range of reasonable scenarios the business has sufficient liquidity. On this basis the accounts have been prepared on a going concern basis.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 27 February 2025 and signed on its behalf by:
 

.........................................
Miss Vaida Narbutaite
Director

 

Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Penny Limited
for the Year Ended 31 May 2024

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Penny Limited for the year ended 31 May 2024 as set out on pages 4 to 16 from the company's accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of Penny Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Penny Limited and state those matters that we have agreed to state to the Board of Directors of Penny Limited, as a body. We have prepared the financial statements based on accounting records, information and explanations provided by Penny Limited. We do not express any opinion on the financial statements.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Penny Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Penny Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Penny Limited. You consider that Penny Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Penny Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Liquid Friday Limited

27 February 2025

 

Penny Limited

Abridged Profit and Loss Account for the Year Ended 31 May 2024

Note

2024
£

2023
£

Gross profit

 

2,359,999

1,636,693

Administrative expenses

 

(1,914,732)

(1,748,295)

Interest payable and similar expenses

 

(849,459)

(738,918)

Loss before tax

4

(404,192)

(850,520)

Tax on loss

 

-

41,467

Loss for the financial year

 

(404,192)

(809,053)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Penny Limited

Statement of Comprehensive Income for the Year Ended 31 May 2024

2024
£

2023
£

Loss for the year

(404,192)

(809,053)

Total comprehensive income for the year

(404,192)

(809,053)

 

Penny Limited

(Registration number: 11972051)
Abridged Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

5

72,501

153,626

Tangible assets

6

24,144

7,388

Investments

7

1

1

 

96,646

161,015

Current assets

 

Debtors

8

4,609,439

3,898,799

Cash at bank and in hand

 

2,980,834

384,082

 

7,590,273

4,282,881

Prepayments and accrued income

 

16,603

1,821

Creditors: Amounts falling due within one year

(136,447)

(182,308)

Net current assets

 

7,470,429

4,102,394

Total assets less current liabilities

 

7,567,075

4,263,409

Creditors: Amounts falling due after more than one year

(7,598,616)

(4,236,950)

Accruals and deferred income

 

(1,842,041)

(1,481,019)

Net liabilities

 

(1,873,582)

(1,454,560)

Capital and reserves

 

Called up share capital

9

674

507

Share premium reserve

1,599,616

1,599,616

Retained earnings

(3,473,872)

(3,054,683)

Shareholders' deficit

 

(1,873,582)

(1,454,560)

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

Penny Limited

(Registration number: 11972051)
Abridged Balance Sheet as at 31 May 2024

All of the company’s members have consented to the preparation of an Abridged Profit and Loss Account and an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.

Approved and authorised by the Board on 27 February 2025 and signed on its behalf by:
 

.........................................
Miss Vaida Narbutaite
Director

 

Penny Limited

Statement of Changes in Equity for the Year Ended 31 May 2024

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 June 2023

506

1,599,616

(3,054,681)

(1,454,559)

Loss for the year

-

-

(404,192)

(404,192)

New share capital subscribed

168

-

-

168

Purchase of own share capital

-

-

(14,999)

(14,999)

At 31 May 2024

674

1,599,616

(3,473,872)

(1,873,582)

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 June 2022

127

99,996

(2,245,630)

(2,145,507)

Loss for the year

-

-

(809,053)

(809,053)

New share capital subscribed

380

1,499,620

-

1,500,000

At 31 May 2023

507

1,599,616

(3,054,683)

(1,454,560)

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Archibald House
50-56 Wykes Bishop Street
Ipswich
IP3 0DT
England

These financial statements were authorised for issue by the Board on 27 February 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These abridged financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are prepared in pounds sterling which is the functional currency of the Company and are rounded to the nearest £.

Going concern

Notwithstanding the loss for the year and the net liabilites of the Company, the Directors believe that the company will be able to meet its liabilities as they fall due for at least 12 months from the date of approving the financial statements. This is on the basis of the introduction of additional funding lines post year end and the preperation of medium term forecasts and cashflow projections which demonstrate that under a range of reasonable scenarios the business has sufficient liquidity. On this basis the accounts have been prepared on a going concern basis.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2024

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

There are no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies that have any significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year..

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

For the monthly JRS grant income, the income is recognised in the period to which the underlying furloughed staff costs relate to. The payroll liability has been incurred by the entity, and it has therefore met the conditions to claim for that payroll accounting period.

Tax

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

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 group operates and generates taxable
income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2024

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture and fittings

4 years straight line

Office equipment

4 years straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Development costs

Intangible assets are initially recognised at costs. After recognition, under the costs model, intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value. No amoitisation is provided until the project that the costs related to is complete or has ceased. Amortisation is provided over their useful life as follows:

Asset class

Amortisation method and rate

Capitalised development costs

4 years straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2024

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade and other debtors/creditors are recognised initially at the transaction price less attributable transaction costs. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment for any losses for trade debtors. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
If the arrangement constitutes a financing arranagement, for example if deferred beyond normal business terms, then it is measured at the present value of the future payments discounted at a market rate of instruments for a similar debt instrument.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2024

Financial instruments

Classification
The Company only enters into basic financial instruments that result in the recognition of financial assets and liabilites such as are described in trade and other debtors and payables
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 14 (2023 - 15).

4

Loss before tax

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

6,532

2,272

Amortisation expense

81,126

70,600

5

Intangible assets

Total
£

Cost or valuation

At 1 June 2023

324,503

At 31 May 2024

324,503

Amortisation

At 1 June 2023

170,876

Amortisation charge

81,126

At 31 May 2024

252,002

Carrying amount

At 31 May 2024

72,501

At 31 May 2023

153,626

The amount of research and development expenditure capitalised in the year was £123,950 (2022: Nil) and is included in the internally generated software costs above.

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2024

6

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 June 2023

-

9,875

9,875

Additions

8,736

14,552

23,288

At 31 May 2024

8,736

24,427

33,163

Depreciation

At 1 June 2023

-

2,486

2,486

Charge for the year

1,917

4,616

6,533

At 31 May 2024

1,917

7,102

9,019

Carrying amount

At 31 May 2024

6,819

17,325

24,144

At 31 May 2023

-

7,388

7,388

Included within the net book value of land and buildings above is £6,819 (2023 - £Nil) in respect of short leasehold land and buildings.
 

7

Investments

Total
£

Cost or valuation

At 1 June 2023

1

Provision

Carrying amount

At 31 May 2024

1

At 31 May 2023

1

 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2024

2024
£

2023
£

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Penny Freedom Limited

The Port House Marina Keep
Port Solent
Portsmouth
Hampshire
PO6 4TH

England

Ordinary

100%

100%

Subsidiary undertakings

Penny Freedom Limited

The principal activity of Penny Freedom Limited is that of a dormant company.

8

Debtors

Debtors includes £Nil (2023 - £100,000) due after more than one year.

9

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £0.01 each

50,692

507

50,692

507

       
 

Penny Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 May 2024

10

Related party transactions

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

181,928

66,561

Contributions paid to money purchase schemes

2,306

937

184,234

67,498