Company registration number 05892452 (England and Wales)
WORLDWIDE CURRENCIES LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
WORLDWIDE CURRENCIES LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
WORLDWIDE CURRENCIES LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
49,899
68,412
Investments
5
111,679
111,679
161,578
180,091
Current assets
Debtors
7
5,377,797
7,300,647
Cash at bank and in hand
5,586,800
4,790,208
10,964,597
12,090,855
Creditors: amounts falling due within one year
9
(9,139,355)
(9,896,912)
Net current assets
1,825,242
2,193,943
Total assets less current liabilities
1,986,820
2,374,034
Provisions for liabilities
(11,006)
(67,762)
Net assets
1,975,814
2,306,272
Capital and reserves
Called up share capital
10
10,000
10,000
Profit and loss reserves
1,965,814
2,296,272
Total equity
1,975,814
2,306,272

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
D Tucker
M Stripling
Director
Director
Company registration number 05892452 (England and Wales)
WORLDWIDE CURRENCIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Worldwide Currencies Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 21 Lombard Street, London, EC3V 9AH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention modified to include forward debtors and creditors at fair value as outlined in note 6 of the financial statements. The principal accounting policies adopted are set out below.

1.2
Going concern

A range of economic factors and increased competition has reduced demand for the Company's services in FY23. To gain a competitive edge in the sector, the Company has invested heavily into the further development of its proprietary platform, Tradewave, and additional unexpected investment into the new online portal, FXP, which has been significantly delayed. There have also been several senior staff departures in Front Office. This is expected to be a temporary setback, particularly as the UK economy shows signs of recovery, but also as new Consumer Duty rules limit the activities of non-regulated companies in the market. The launch of new products from the development of Tradewave has taken twelve months longer than expected and did not go live early in 2024 as planned. The replacement of the departed staff is already in hand. The Company also benefits from support from its ultimate owner, who has agreed to provide financial support where necessary and there is an expectation that the European based company will start repaying its loan to the Company from the profits made by leasing our proprietary software, Tradewave.

 

As at 31 December 2023, the Company is in a net current asset position of £1,825,242. However, the forecasted cash flow for the next 12 months from the date of the Auditors' report, as presented by management is dependent on the success of FXP client portal, the launch of which has been significantly delayed.

 

After making enquiries and considering the uncertainties described above, the Directors have a reasonable expectation that the Company will have adequate resources to continue operating for the foreseeable future. Thus the Directors continue to adopt the going concern basis in preparing the financial statements.

1.3
Turnover

Turnover represents the net value of currency transactions undertaken by the company. Purchases of currency from the company's institutional counterparties are netted off against turnover to produce the net value.

 

Turnover is recognised when a binding contract is entered into by a client and the profit is fixed and determined. When the company enters into a contract for forward delivery with a client it also enters into a separate matched forward contract with its bankers.

 

Where a contract for forward delivery is open at the year end, the fair value of the balance of the contract due from the client at the maturity date and the corresponding liability with the company's bankers are included in derivative financial instruments.

WORLDWIDE CURRENCIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets

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

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

Leasehold land and buildings
Over the lease term
Plant and equipment
25% - 33% reducing balance

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

1.5
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.6
Impairment of fixed assets

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

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

 

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

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

1.7
Cash and cash equivalents

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

WORLDWIDE CURRENCIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
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.

1.9
Equity instruments

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

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

 

The company uses forward contract derivatives in operations with the amounts open as forward contracts being recognised in trade and other debtors and amounts due to open forward contracts being reorganised in trade and other creditors. The forward contracts are remeasured to fair value at each financial period end date with the resulting gain recognised in the profit and loss account.

WORLDWIDE CURRENCIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.11
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
Leases

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

WORLDWIDE CURRENCIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
Judgements and key sources of estimation uncertainty

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fair value of derivative financial instruments

The company enters into derivative financial instruments (foreign currency forward contracts) with customers and banks in the course of providing its services. These derivatives are revalued to their estimated fair value at each financial period end. The directors use trading rates available to the company at each reporting date to estimate fair value. The accounting policy for derivative financial instruments is disclosed in note 1.10. The fair value of derivative financial instruments is disclosed in note 6.

3
Employees

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

2023
2022
Number
Number
Total
32
37
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
399,010
279,240
678,250
Additions
-
0
3,369
3,369
At 31 December 2023
399,010
282,609
681,619
Depreciation and impairment
At 1 January 2023
399,010
210,828
609,838
Depreciation charged in the year
-
0
21,882
21,882
At 31 December 2023
399,010
232,710
631,720
Carrying amount
At 31 December 2023
-
0
49,899
49,899
At 31 December 2022
-
0
68,412
68,412
WORLDWIDE CURRENCIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
111,679
111,679
6
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,348,600
4,187,708
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
(2,421,020)
(4,687,185)

Financial assets and liabilities measured at fair value through profit or loss comprise forward debtors and forward creditors, being the open position measured at fair value through Profit and Loss. Their fair value is based on the transaction price agreed with the customer of counterparty and their observable fair value in the foreign exchange market.

 

The fair value of forward currency contracts is based on the observable prices in the foreign exchange market requiring no significant adjustment. Under FRS102 Section 34 - Specialised Activities (Financial Institutions) these are classified under the fair value hierarchy as level 2. Financial assets that are debt instruments measured at amortised costs comprise other debtors. Other debtors have short time to maturity. For this reason, their carrying value at the year end is approximate to their fair values.

 

Financial liabilities measured at amortised cost comprise other creditors and amounts due to group undertakings. These have short times to maturity. For this reason, their carrying value at the year end is approximate to their fair values.

7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
351,958
917,698
Corporation tax recoverable
63,359
5,661
Other debtors
4,962,480
6,377,288
5,377,797
7,300,647
8
Cash at bank

Cash at bank and in hand of £5,586,800 (2022: £4,790,208) includes £5,496,103.17 (2022: £4,289,277) held in respect of customer balances in segregated accounts, the corresponding balance for which is held within trade creditors.

 

Cash at bank and in hand also includes an amount of £363,418 (2022: £394,813) on deposit with the company's bankers as collateral security.

 

WORLDWIDE CURRENCIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
6,078,896
5,474,235
Corporation tax
3,636
23,796
Other taxation and social security
202,465
92,337
Other creditors
2,854,358
4,306,544
9,139,355
9,896,912
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
100
100
100
100
Ordinary B shares of £1 each
9,900
9,900
9,900
9,900
10,000
10,000
10,000
10,000

'A' and 'B' shares rank pari passu in all respects save that the holders of 'B' shares shall not be entitled to receive notice of, to attend, or vote at general meetings. There are no restrictions on the distribution of dividends and the repayment of capital.

11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Miss Helen Cain BA FCA
Statutory Auditor:
Mercer & Hole LLP
Date of audit report:
17 March 2025
12
Operating lease commitments
Lessee

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

2023
2022
£
£
1,086,116
1,212,408
WORLDWIDE CURRENCIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
13
Related party transactions

During the year the company paid £221,885 (2022: £217,305) to its parent company for services supplied by a director.

 

At the year end the company was owed £1,682,140 (2022: £1,689,069) by the parent company. This amount is interest free and repayable on demand.

 

At the year end the company was owed £514,926 (2022: £256,626) by it's subsidiary company Worldwide Currencies Europe Unipessoal LDA. This amount is interest free and repayable on demand.

 

At the year end the company owed a director £70,209 (2022: £7,349)

 

14
Parent company

The immediate parent company is Worldwide Currencies Limited, a company incorporated in Bermuda. The ultimate parent company is Worldwide Securities Limited, a company incorporated in Bermuda. The ultimate controlling party is D Tucker.

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