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NOTES TO THE FINANCIAL STATEMENTS
Mogo Holdings Limited is a private Company limited by shares, incorporated in England and Wales under Companies Act 2006. The address of the registered office and registration number is given on the Company information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
Included within debtors due within one year is an amount of £9,774,052 owed by a subsidiary Company (2023: £9,372,121). The Company remains in a net liability position and this is not expected to change in the near future. Despite the subsidiary lacking the cash or reserves to repay the debt, the directors consider the loan to be fully recoverable, as the subsidiary's future expected market value is forecast to exceed the combined investment and intercompany loan.
The Company and Group as a whole continue to be loss-making, and the Company’s Australian subsidiary had a challenging year, seeing an overall reduction in the level of annual revenue. These losses are as anticipated and expected to continue for at least a further two years.
Since the end of the financial year, the Company has continued to raise funds from existing and new investors, most notably securing an investment of £500,000 in April 2025. The directors remain optimistic that the Company will continue to be able to raise the further funding required until it can reach cash flow positive. It is on this basis, and on a review of the Group’s commercial pipeline that the directors believe that the Company remains a going concern. As such, the financial statements have been prepared on this basis.
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NOTES TO THE FINANCIAL STATEMENTS
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one
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NOTES TO THE FINANCIAL STATEMENTS
2.Accounting policies (continued)
year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
The above loans are secured by fixed and floating charges against all assets of the entity.
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NOTES TO THE FINANCIAL STATEMENTS
Included in other creditors within one year is £95,000 (2023: £95,000) owed to directors of the Company. Also included in other creditors is an amount of £52,522 (2023: £46,022) relating to the interest accrued in respect of the outstanding loan balance. Interest was accrued at 10% on £65,000 of the loans provided, no interest was accrued in the year on the remaining £30,000.
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