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Registered number: 07125478
ELSTON CONSULTING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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ELSTON CONSULTING LIMITED
CONTENTS
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Statement of Changes in Equity
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Notes to the Financial Statements
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ELSTON CONSULTING LIMITED
REGISTERED NUMBER: 07125478
BALANCE SHEET
AS AT 31 MARCH 2024
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Share-based payment reserve
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ELSTON CONSULTING LIMITED
REGISTERED NUMBER: 07125478
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 May 2025.
The notes on pages 5 to 16 form part of these financial statements.
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ELSTON CONSULTING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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At 1 April 2023 (as previously stated)
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At 1 April 2023 (as restated)
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Share based payments charge
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The notes on pages 5 to 16 form part of these financial statements.
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ELSTON CONSULTING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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Loss for the year (restated)
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Shares issued during the year
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At 31 March 2023 (restated)
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The notes on pages 5 to 16 form part of these financial statements.
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Elston Consulting Limited is a private company, limited by shares, incorporated in England and Wales,
registration number 07125478. The registered office is 1 King William Street, London, EC4N 7AF.
2.Accounting policies
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Basis of preparation of financial statements
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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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
In assessing the Company’s ability to continue as a going concern, the directors have considered the Company’s current financial position, its cash flow forecasts, and the funding requirements for the period of at least twelve months from the date of approval of these financial statements. Based on this assessment, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
The directors have prepared detailed cash flow projections which demonstrate that the Company is expected to maintain sufficient liquidity to meet its obligations as they fall due. These projections take into account current trading performance, anticipated revenue streams, and planned cost management initiatives. Management have implemented process efficiencies since the year-end which reduce operating costs going forward and further cost cutting measures could be taken, if required.
Furthermore, the directors are confident in the Company’s strategic direction and expect to achieve significant growth in the short to medium term. The directors have also considered the repayment of the shareholder loan which, as disclosed in note 12, is due to be repaid on 31 August 2026.
Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
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.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in ordinary shares.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
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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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The following are critical estimates that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Intangible fixed assets
The Company has recognised intangible fixed assets in the form of computer software. The useful economic life (UEL) of the software has been assessed at 3 years, based on the expected future economic benefits. This assessment is reviewed annually and adjusted if there is a significant change in the expected useful life.
Interest rate applied to shareholder loan
The Company received a shareholder loan on 18 August 2023, amounting to £450,000. The loan accrues interest at a rate of 12% per annum and is redeemable on 31 August 2026. The accounting standards stipulate that the loan should be recorded on initial recognition at the present value of the future payments discounted at a market rate of interest for a similar instrument, adjusted for transaction costs. The directors have considered this and there are a number of factors which would impact the Company's ability to obtain a similar debt instrument, including but not limited to the fact that the Company is loss making and has been since incorporation. As a result of this, the directors believe that it is unlikely that a third party would issue the Company with a comparable debt instrument. Consequently, the directors are unable to determine what an appropriate market rate of interest would be on a similar loan. The Company have made no market rate adjustment to the interest rate applied at 12% per annum.
Share based payments
On 14 September 2023 the Company granted 9,626,500 EMI share options to certain employees and directors. The Black Scholes model was used to fair value the share options due to the absence of an active market for the Company's shares.
The valuation process requires management to make certain assumptions about the share price at the grant date of the options, the risk free rate, dividend yield, expected life of the options and volatility. Management acknowledge that changes in the assumptions used, particularly the expected volatility and timing of a realisation event could materially affect the fair value of the options granted, and the charge in these financial statements. The share-based payment expense recorded in these financial statements represents management's best estimate.
Management have assessed that all of the share options will vest. See note 14 for further details.
Deferred tax asset
Management are required to assess whether it is appropriate to recognise a deferred tax asset relating to taxable losses available to the Company. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of losses and other deductions can be deducted.
Determining future taxable profits and the timing of when those profits will arise involves judgement regarding the future financial performance of the Company. No deferred tax asset has been recognised, given the timing of the profits arising being uncertain, but losses available to be offset against future trading profits of the Company are approximately £1,225,679.
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The average monthly number of employees, including directors, during the year was 6 (2023 - 6).
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
A director received remuneration of £309,382 (2023 - £288,000).
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The intangible assets balance is made up of two purchases of certain business assets in relation to two funds - as part of the purchase agreements, the company have become sponsors of the funds. Management believe that trademarks is the most appropriate classification of the acquired assets.
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Due after more than one year
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Called up share capital not paid
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Prepayments and accrued income
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Amounts owed by the director are unsecured, interest free and repayable on demand. See note 18 for further details.
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Cash and cash equivalents
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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On 6 May 2020, the Company obtained a £50,000 Bounce Back Loan under the UK government's COVID-19 support scheme. The loan includes a 12-month interest-free and repayment-free period, which ended on 7 June 2021, followed by monthly repayments of £833.33 over 60 months at an interest rate of 2.5% per annum. As of 31 March 2024, the outstanding balance is £21,667 (2023 - £31,461). This was fully repaid in November 2024.
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Creditors: Amounts falling due after more than one year
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The company received a loan from shareholders on 18 August 2023, amounting to £450,000. The loan accrues interest at a rate of 12% per annum and is redeemable on 31 August 2026.
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Allotted, called up and fully paid
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18,204,997 (2023 - 18,204,997) Ordinary shares of £0.01 each
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235,000 (2023 - 235,000) B Shares shares of £0.01 each
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In the prior year, the company issued 2,000,000 ordinary shares at a nominal value of £0.01 per share. The shares were issued at a premium, with an amount paid of £0.11 per share.
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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On 14 September 2023 the Company granted 9,626,500 EMI share options to certain employees and directors. Under the terms of the scheme, employees were granted options to purchase ordinary shares in the company at an exercise price of £0.11 per share. The options vest over a period of four years and are exercisable within ten years from the grant date.
The vesting conditions are non-market company performance conditions. The options vest over four years with an exercise price of £0.11 per share.
No options were exercised during the year. The fair value of the options granted was estimated at the grant date using the Black Scholes model. The total expense recognised in the profit and loss account for the year in respect of share-based payments was £83,544 (2023 - £nil).
All 9,626,500 of the share options were outstanding at year-end.
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It was identified that revenue of £37,481 was omitted from the prior year financial statements. As a result the prior year has been restated. Revenue and accrued income have both increased by £37,481 in the comparative period. Additionally, it was discovered that the Company had received amounts from HMRC in relation to s455 tax refunded in the prior year which had not been accounted for; this has resulted in the reduction of the s455 tax debtor in the prior year by £25,746 and increased tax charge of the same amount.
These adjustments have decreased the loss by £11,735 for the comparative period, being the financial year ended 31 March 2023.
The s455 tax debtor of £194,234 was reclassified from debtors due within one year to debtors due after more than one year. This had no impact on the Company's loss shown in the Statement of Comprehensive Income.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £59,980 (2023 - £33,237). Contributions totaling £34,033 (2023 - £37,820) were payable to the fund at the balance sheet date and are included in creditors.
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ELSTON CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Commitments under operating leases
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At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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During the year, a director was advanced £150,232 (2023 - £185,110) in cash from the Company. The director repaid £38,000 (2023 - £Nil) of the advanced amount. As a result, the balance of the director's loan account as at the year-end is £704,152 (2023 - £591,920).
Amounts owed by the director are unsecured, interest free and repayable on demand.
During the year the Company received revenues totalling £377,000 (2023 - £300,788) from shareholders of the Company.
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The auditors' report on the financial statements for the year ended 31 March 2024 was unqualified.
The audit report was signed on 23 May 2025 by Sally Casson (Senior Statutory Auditor) on behalf of Ecovis Wingrave Yeats LLP.
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