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Registration number: 11535714

La Orange Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

La Orange Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Consolidated Profit and Loss Account

10

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Statement of Cash Flows

17

Notes to the Financial Statements

18 to 25

 

La Orange Limited

Company Information

Directors

R E Ottman

H J Sze

Registered office

The Shard Floor 24/25
32 London Bridge Street
London
SE1 9SG

Auditors

NA Associates LLP
Chartered Certified Accountants
Woodgate Studios
2-8 Games Road
Cockfosters
Hertfordshire
EN4 9HN

 

La Orange Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the group is agents for e-money services.

Fair review of the business

As a leading agent for e-money services, the company remains committed to facilitating financial transactions and expanding its global footprint. Throughout the year, La Orange Limited focused on leveraging technological advancements and strategic marketing initiatives to solidify its market presence and drive sustainable growth.

Due to significant investments in IT development and marketing efforts, La Orange Limited experienced an increase in costs, resulting in a small loss for the year. However, the company continued to increase its turnover compared to the previous year, signalling growth opportunities and heightened market demand.

In January 2024, La Orange Limited was proud to announce that our European Arm “La Orange CY Limited” was authorised by the Central Bank of Cyprus with an authorised EMI (Electronic Money Institution) license. This significant milestone grants La Orange Group access to the lucrative EU 27-member state market, laying the foundation for expansive growth and market penetration opportunities. The EMI license authorisation shows the company's commitment to regulatory compliance, operational excellence, and financial integrity. With this license in place, La Orange Limited is poised to unlock new avenues of expansion and capitalize on emerging market trends across diverse jurisdictions.

La Orange Limited recognizes the importance of proactive risk management in navigating the dynamic business landscape. The company maintains robust risk management protocols to address potential threats and capitalize on emerging opportunities. Key areas of focus include credit risk, liquidity risk, and market volatility, with stringent measures in place to mitigate adverse impacts on financial performance and operational efficiency.

Looking ahead, La Orange Limited is positioned well to capitalize on emerging market trends on untapped opportunities. The company remains committed to expanding its product and service offerings across diverse jurisdictions, with a focus on delivering innovative solutions and enhancing customer satisfaction. Strategic partnerships and collaborative ventures will play a pivotal role in driving sustained growth and fostering long-term sustainability.

In conclusion, La Orange Limited remains steadfast in its commitment to excellence, innovation, and customer-centricity. The acquisition of the EMI license from the Central Bank of Cyprus by La Orange CY Limited represents a significant milestone in the group's journey towards market expansion and strategic growth. With a focus on regulatory compliance, operational efficiency, and customer satisfaction, La Orange Limited is well-positioned to navigate the evolving landscape of e-money services and emerge as a leader in the global marketplace.

 

La Orange Limited

Strategic Report for the Year Ended 31 December 2023

After the year end the Group has changed ownership and disposed of one of its subsidiaries, which will enable the Group to work towards its long term sustainable growth objectives. The nature and provision of the support by the new owner will be shaped by the Group’s current financial position, strategic goals, and operational needs. It is expected that methods such as operational optimization or strategic partnerships will be pursued.

Once the scope and duration of the support are clarified, the process will be carefully managed, and progress will be monitored through regular reporting. This will strengthen the Group’s financial structure and ensure the achievement of its stated objectives. Together with the management’s actions and decisions during this process, an appropriate framework will be established to achieve the financial targets. In conclusion, the support provided by the new owner will be positioned to drive long-term strategic growth. The effective management of this process will have a direct impact on the Group’s future operational and financial performance.

The group continued to grow its business internationally in 2023, and increased turnover from £25,132,227 in 2022 to £28,628,233 in 2023. The group continued to invest heavily in IT development and marketing in 2023 which resulted in profit before tax falling from £127,647 to a loss of £206,115. As a result the net assets of the Group decreased from £1,950,807 to £1,766,959.

The group's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Group turnover

£

28,628,233

25,132,227

Group (Loss) / profit before tax

£

(206,115)

127,647

Group Net assets

£

1,766,959

1,950,807

Principal risks and uncertainties

The company's principal financial instruments comprise cash at bank and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to fund the company's operations as well as to manage working capital, liquidity and invest surplus cash.

The directors continue to assess the risks facing the company. Both the securing of new markets and new business and maintain existing relationships are key to the company’s success.

Other ongoing challenges are overhead cost control which are kept under regular review by the directors.

Approved and authorised by the Board on 28 February 2025 and signed on its behalf by:
 

.........................................
H J Sze
Director

 

La Orange Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the for the year ended 31 December 2023.

Directors of the group

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

S Temirkanov (resigned 20 November 2024)

R E Ottman

H J Sze (appointed 9 January 2023)

Financial instruments

Objectives and policies

The group's operations expose it to a variety of financial risks that include the effects of changes in credit risk and liquidity risk.

The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related costs. The group does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the finance department.

Price risk, credit risk, liquidity risk and cash flow risk

Liquidity risk
The group's liquidity policy is to maintain sufficient liquid resources to cover cash flow imbalances and fluctuations. The group maintains sufficient cash balances with its banking partners to cover liquidity risk. Furthermore, the group continuously monitors income and expenditure levels and adjust plans accordingly.

Price risk
The group is exposed to price risk due to normal inflationary increases in the purchase price of services purchased in the UK and abroad. The group had no exposure to equity securities price risk as it holds no listed or other equity investments.

Regulatory risk
The group operates in a regulatory environment which is characterised by changing and evolving legislation and regulation which may impact on the group's business in the UK and oversees. The group is exposed to financial crime including fraud and money laundering for which the group had developed internal systems and controls.

Competition
The Company's main competitors are other agents for e-money services.

Future developments

The group is planning to expand its products and services to different jurisdictions that deliver higher margins. New products and services will be launched in the coming years. The directors are confident of delivering sustainable future growth for the group.

 

La Orange Limited

Directors' Report for the Year Ended 31 December 2023

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered the consequences of the general cost of living crisis and other events and conditions. The impact of these on the groups performance is not considered to be significant in the opinion of the directors and therefore on the measurement of some assets and liabilities or on the liquidity is not expected to be impaired. Hence, the Directors are confident that the group has adequate resources to remain in operation for the foreseeable future, including the support of the shareholder, and has therefore continued to adopt the going concern basis in preparing the financial statements.

Important non adjusting events after the financial period

On 10 December 2024 the group sold one of its subsidiaries, La Orange GE LLC, to a third party.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 28 February 2025 and signed on its behalf by:
 

.........................................
H J Sze
Director

 

La Orange Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

La Orange Limited

Independent Auditor's Report to the Members of La Orange Limited

Opinion

We have audited the financial statements of La Orange Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and 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 group's and the parent company's affairs as at 31 December 2023 and of the group's 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

La Orange Limited

Independent Auditor's Report to the Members of La Orange Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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.

Auditor Responsibilities for the audit of the financial statements

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

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

• Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; and
• Identifying and testing significant manual journal entries and reviewing assumptions and judgements made by management in making significant accounting estimates.

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

 

La Orange Limited

Independent Auditor's Report to the Members of La Orange Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Nicholas Antoniou (Senior Statutory Auditor)
For and on behalf of NA Associates LLP
Statutory Auditors
Chartered Certified Accountants

Woodgate Studios
2-8 Games Road
Cockfosters
Hertfordshire
EN4 9HN

28 February 2025

 

La Orange Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

28,628,233

25,132,227

Cost of sales

 

(9,733,715)

(9,881,367)

Gross profit

 

18,894,518

15,250,860

Administrative expenses

 

(19,170,076)

(15,005,529)

Operating (loss)/profit

(275,558)

245,331

Interest payable and similar expenses

4

69,443

(117,684)

(Loss)/profit before tax

 

(206,115)

127,647

Tax on (loss)/profit

8

22,267

192,117

(Loss)/profit for the financial year

 

(183,848)

319,764

Profit/(loss) attributable to:

 

Owners of the company

 

(183,848)

319,764

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

 

La Orange Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

(Loss)/profit for the year

(183,848)

319,764

Total comprehensive income for the year

(183,848)

319,764

Total comprehensive income attributable to:

Owners of the company

(183,848)

319,764

 

La Orange Limited

(Registration number: 11535714)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Current assets

 

Debtors

10

11,302,054

8,721,625

Cash at bank and in hand

 

7,435,258

7,235,978

 

18,737,312

15,957,603

Creditors: Amounts falling due within one year

12

(16,970,353)

(14,006,796)

Net assets

 

1,766,959

1,950,807

Capital and reserves

 

Called up share capital

14

1

1

Retained earnings

1,766,958

1,950,806

Equity attributable to owners of the company

 

1,766,959

1,950,807

Shareholders' funds

 

1,766,959

1,950,807

Approved and authorised by the Board on 28 February 2025 and signed on its behalf by:
 

.........................................
H J Sze
Director

 

La Orange Limited

(Registration number: 11535714)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

9

1,359,932

348,024

Current assets

 

Debtors

10

11,296,485

9,058,362

Cash at bank and in hand

 

1,251,764

2,250,573

 

12,548,249

11,308,935

Creditors: Amounts falling due within one year

12

(10,860,953)

(8,742,186)

Net current assets

 

1,687,296

2,566,749

Net assets

 

3,047,228

2,914,773

Capital and reserves

 

Called up share capital

14

1

1

Retained earnings

3,047,227

2,914,772

Shareholders' funds

 

3,047,228

2,914,773

The company made a profit after tax for the financial year of £132,455 (2022 - profit of £1,243,011).

Approved and authorised by the Board on 28 February 2025 and signed on its behalf by:
 

.........................................
H J Sze
Director

 

La Orange Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2023

1

1,950,806

1,950,807

1,950,807

Loss for the year

-

(183,848)

(183,848)

(183,848)

At 31 December 2023

1

1,766,958

1,766,959

1,766,959

Share capital
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2022

1

1,631,042

1,631,043

1,631,043

Profit for the year

-

319,764

319,764

319,764

At 31 December 2022

1

1,950,806

1,950,807

1,950,807

 

La Orange Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

1

2,914,772

2,914,773

Profit for the year

-

132,455

132,455

At 31 December 2023

1

3,047,227

3,047,228

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

1

1,671,761

1,671,762

Profit for the year

-

1,243,011

1,243,011

At 31 December 2022

1

2,914,772

2,914,773

 

La Orange Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

(Loss)/profit for the year

 

(183,848)

319,764

Adjustments to cash flows from non-cash items

 

Income tax expense

8

(22,267)

(192,117)

 

(206,115)

127,647

Working capital adjustments

 

Increase in trade debtors

10

(2,580,429)

(3,033,468)

Increase in trade creditors

12

3,133,695

5,983,844

Cash generated from operations

 

347,151

3,078,023

Income taxes (paid)/received

8

(147,871)

6,478

Net cash flow from operating activities

 

199,280

3,084,501

Net increase in cash and cash equivalents

 

199,280

3,084,501

Cash and cash equivalents at 1 January

 

7,235,978

4,151,477

Cash and cash equivalents at 31 December

 

7,435,258

7,235,978

 

La Orange Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

132,455

1,243,011

Adjustments to cash flows from non-cash items

 

Income tax expense

8

(22,267)

(192,117)

 

110,188

1,050,894

Working capital adjustments

 

Increase in trade debtors

10

(2,238,123)

(3,032,484)

Increase in trade creditors

12

2,288,905

3,406,434

Cash generated from operations

 

160,970

1,424,844

Income taxes (paid)/received

8

(147,871)

6,478

Net cash flow from operating activities

 

13,099

1,431,322

Cash flows from investing activities

 

Acquisition of subsidiaries

9

(1,011,908)

(347,024)

Net (decrease)/increase in cash and cash equivalents

 

(998,809)

1,084,298

Cash and cash equivalents at 1 January

 

2,250,573

1,166,275

Cash and cash equivalents at 31 December

 

1,251,764

2,250,573

 

La Orange Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

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

The address of its registered office is:
The Shard Floor 24/25
32 London Bridge Street
London
SE1 9SG

The principal place of business is:
1 Gunpowder Square
London
EC4A 3EP

These financial statements were authorised for issue by the Board on 28 February 2025.

2

Accounting policies

Summary of significant accounting policies

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 financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These 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.

The accounts are prepared in the company's functional currency of British Pounds (£) and rounded to the nearest £1.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and all its subsidiary undertakings drawn up to 31 December 2023.

 

La Orange Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered the consequences of the general cost of living crisis and other events and conditions. The impact of these on the groups performance is not considered to be significant in the opinion of the directors and therefore on the measurement of some assets and liabilities or on the liquidity is not expected to be impaired. Hence, the Directors are confident that the group has adequate resources to remain in operation for the foreseeable future, including the support of the shareholder, and has therefore continued to adopt the going concern basis in preparing the financial statements.

Revenue recognition

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

The group 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 group's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

La Orange Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Tax

The tax expense for the period comprises current 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.

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.

Research and development

Expenditure on research and development is written off to the profit and loss account in the year in which it is incurred.

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.

Trade debtors

Debtors with no stated interest rate and receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Trade creditors

Creditors with no stated interest rate and payables within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

 

La Orange Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Rendering of services

28,628,233

25,132,227

4

Interest payable and similar expenses

2023
£

2022
£

Foreign exchange (losses)/gains

(69,443)

117,684

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,576,829

645,136

Social security costs

154,170

54,316

Pension costs, defined contribution scheme

13,328

8,062

1,744,327

707,514

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

47

25

47

25

 

La Orange Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

66,660

67,500

7

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

16,550

15,950

Other fees to auditors

All other assurance services

3,400

3,850


 

8

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax adjustment to prior periods

(22,267)

(192,117)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 23.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(206,115)

127,647

Corporation tax at standard rate

(48,437)

24,253

Decrease in UK and foreign current tax from adjustment for prior periods

(22,267)

(192,117)

Other tax effects for reconciliation between accounting profit and tax expense (income)

48,437

(24,253)

Total tax credit

(22,267)

(192,117)

 

La Orange Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Investments

Company

Subsidiaries

£

Cost or valuation

At 1 January 2023

348,024

Additions

1,011,908

At 31 December 2023

1,359,932

Carrying amount

At 31 December 2023

1,359,932

At 31 December 2022

348,024

Details of undertakings

Details of the investments 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

     

2023

2022

Subsidiary undertakings

La Orange GE LLC

Georgia

Equity shares

100%

100%

Lom Holding Limited

Malta

Equity shares

99%

99%

Lom Limited

Malta

Equity shares

99%

99%

La Orange LLC

Croatia

Equity shares

100%

100%

La Orange CY Limited

Cyprus

Equity shares

100%

100%

Jeton Bank Limited

Dominica

Equity shares

100%

100%

Lom Limited is a 99% owned subsidiary of Lom Holding Limited.

 

La Orange Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

10

Debtors

   

Group

Company

Current

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

130,411

145,208

130,411

145,208

Amounts owed by related parties

16

-

-

-

342,707

Other debtors

 

10,892,074

8,306,417

10,891,074

8,301,447

Prepayments

 

279,569

270,000

275,000

269,000

   

11,302,054

8,721,625

11,296,485

9,058,362

11

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

7,435,258

7,235,978

1,251,764

2,250,573

12

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Trade creditors

 

304,889

194,205

304,889

192,245

Amounts due to related parties

16

-

-

10,455,096

8,287,065

Social security and other taxes

 

48,336

38,662

48,336

38,662

Other payables

 

16,383,162

13,546,126

-

-

Accruals

 

233,966

57,665

52,632

54,076

Corporation tax liability

8

-

170,138

-

170,138

 

16,970,353

14,006,796

10,860,953

8,742,186

 

La Orange Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £13,328 (2022 - £8,062).

14

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

         

15

Commitments

Group

Other financial commitments

The total amount of other financial commitments not provided in the financial statements was £615,000 (2022 - £108,000).

16

Related party transactions

Summary of transactions

Debtors for the group includes an amount of £13,525 (2022 - £13,525) due from a related party.
Creditors of the parent company include an amount of £10,455,096 (2022 - £8,287,065) due to a related party.
Debtors of the parent company include an amount of £13,525 (2022 - £356,232) due to a related party.
Administrative expenses include an amount of £1,411,513 (2022 - £Nil) paid to a related party.
Administrative expenses include an amount of £1,000 (2023 - £1,000 ) paid to a Director.

 

17

Non adjusting events after the financial period

On 10 December 2024 the group sold one of its subsidiaries, La Orange GE LLC, to a third party.