Company registration number 14364051 (England and Wales)
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
COMPANY INFORMATION
Directors
Mr CA Lugt
Mr MJ Thorpe
Mr H Dowling
Mr M Aubourg
Mr TD Payne
(Appointed 31 October 2024)
Ms J Wassenaar
(Appointed 31 October 2024)
Company number
14364051
Registered office
3rd Floor
114a Cromwell Road
London
SW7 4AG
Auditor
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The ownership of Correlation One Investments (Europe) Limited (the “Company”) is split between Correlation One Holdings Limited (“Correlation”) (owning 50% plus one share) and Pinnacle Pet Group Limited (“PPG”) (owning 50% minus one share). The Company acts as a holding company for early-stage investments in subsidiaries and associates that provide a range of pet insurance products and ancillary services to pet parents, principally in the United Kingdom.
Principal risks and uncertainties
The principal risks primarily relate to the future performance of subsidiary and associate undertakings. These risks are managed and monitored by the Directors in conjunction with Correlation Holdings Europe Limited, with whom the Company has a management services contract. The Directors consider that there is a minimal level of risk associated with the Company due to the financial strength and experience of Correlation and PPG.
Results and performance
During the period the Company made further funding available to its existing subsidiaries and associates to facilitate further growth and development. This funding was largely in line with budgeted funding. The Company also made investments into Pitpatpet Limited, a leading pet wearable company based in the UK; and Qpaws AS, a Norwegian pet activity and engagement platform.
The Company made an operating loss of £15.4m for the period and a loss before taxation of £19.4m. The losses were primarily driven by expected operating losses in early-stage investments and interest on loan funding provided to the Company by its shareholders.
Total policyholders and registered users across the Company’s subsidiaries and associates grew organically by 40% over the past 12 months, reaching just under 775,000. This is testament to the value proposition and attractiveness of each of the underlying businesses.
Since the year-end, the Company has acquired a strategic investment in a Spanish-based entity in the pet technology sector, representing 30.53% of the share capital of the business. There were no other material post-balance sheet events.
Strategy
Correlation and PPG came together to form a long-term partnership via the Company to drive growth and innovation in the pet insurance and ancillary services sector. This includes interests in the likes of Waggel (a subsidiary of Architech Software Limited), a fast-growing pet insurance provider in the UK; Vet-AI, an advanced veterinary telehealth provider; Biscuit (a trading name of AFX Ventures Limited), an innovative rewards and incentives platform for pet parents; Kozoo, an emerging player in the French pet insurance market; and recent investments in Pitpatpet and Qpaws as noted above.
The Company backs insurance entrepreneurs in early-stage pet insurance and ancillary services businesses based in the UK and Europe to ultimately achieve profitable and sustainable growth. It does this through the provision of management and advisory input, growth capital and access to wider group ecosystem opportunities.
Mr MJ Thorpe
Director
27 May 2025
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company and group continued to be that of providing pet insurance and associated services to customers in the UK and in France.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr CA Lugt
Mr MJ Thorpe
Mr S Suri
(Resigned 31 October 2024)
Mr H Dowling
Mr D Beeckman
(Resigned 31 October 2024)
Mr M Aubourg
Mr TD Payne
(Appointed 31 October 2024)
Ms J Wassenaar
(Appointed 31 October 2024)
Financial instruments
Financial risk management
The group’s operations expose it to a variety of financial risks. In the course of its business, the group is exposed to interest rate risk, liquidity risk and credit risk. Financial risk management is an integral part of the way that the group is managed. Financial risk management policies are set by the Board of Directors. The group has met all of its financial and banking covenants during the year.
Liquidity risk
Liquidity risk represents the risk that the group will not be able to meet its financial obligations as they fall due. The group’s approach to managing this risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the group’s reputation. The group manages this risk by maintaining adequate committed lines of funding.
Interest rate risk
Interest rate risk arising from borrowing at variable rates is not hedged.
Foreign currency risk
The group does not materially transact foreign currency business on a frequent basis.
Credit risk
The Group's principal assets are cash deposits and trade debtors. The credit risk associated with cash deposits is limited as the accounts are held with major UK and French high street banks only. The principal credit risk arises therefore from loans with associate investments, which are monitored closely by the board.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Reserving risk
The group broker maintains reserves which are released against the future costs of servicing insurance policies incepted in prior underwriting periods. Notably the group holds reserves for:
Policy administration; the group incurs costs over the policy year to administer the policy. The reserve is released to income against those costs;
Commission claw-back; where policies cancel mid-term, and the group returns a pro-rata element of its commission income associated with those cancellations; this return is met via a release from the expected commission clawback reserve.
There is a risk that these reserves are insufficient to meet the forecast requirements.
Auditor
Bright Grahame Murray were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible 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 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 then 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Going Concern
The directors consider it appropriate to adopt the going concern basis in preparing these financial statements. Further commentary in this regard is set out in the Strategic Report, the Accounting Policies and Note 1.5 to the financial statements.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
Mr MJ Thorpe
Mr TD Payne
Director
Director
27 May 2025
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
- 5 -
Opinion
We have audited the financial statements of Correlation One Investments (Europe) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 2024 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.
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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 directors' 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 and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:
We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation, health and safety and Financial Conduct Authority.
We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.
We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition, related parties outside normal course of business and management override.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
- 7 -
We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
We enquired of the directors about actual and potential litigation and claims.
We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
Reviewing correspondence between the Company and Financial Conduct Authority (FCA) in relation to compliance with laws and regulations.
In addressing the risk of fraud due to management override of internal controls, we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Robert Moore (Senior Statutory Auditor)
For and on behalf of Bright Grahame Murray
28 May 2025
Chartered Accountants
Statutory Auditor
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Year
Period
ended
ended
31 December
31 December
2024
2023
Notes
£
£
Turnover
3
11,780,690
3,612,076
Cost of sales
(12,641,431)
(4,599,448)
Gross loss
(860,741)
(987,372)
Administrative expenses
(14,513,095)
(5,516,257)
Operating loss
4
(15,373,836)
(6,503,629)
Share of results of associates
(1,575,461)
(264,361)
Interest receivable and similar income
7
666,487
77,027
Interest payable and similar expenses
8
(3,120,540)
(1,000,009)
Loss before taxation
(19,403,350)
(7,690,972)
Tax on loss
9
(101,314)
Loss for the financial year
(19,504,664)
(7,690,972)
Loss for the financial year is attributable to:
- Owners of the parent company
(18,062,430)
(6,958,324)
- Non-controlling interests
(1,442,234)
(732,648)
(19,504,664)
(7,690,972)
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Year
Period
ended
ended
31 December
31 December
2024
2023
£
£
Loss for the year
(19,504,664)
(7,690,972)
Other comprehensive income
Currency translation loss taken to retained earnings
(84,119)
(3,435)
Cash flow hedges gain arising in the year
Total comprehensive income for the year
(19,588,783)
(7,694,407)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(18,146,549)
(6,961,759)
- Non-controlling interests
(1,442,234)
(732,648)
(19,588,783)
(7,694,407)
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
34,814,415
38,893,923
Other intangible assets
10
664,569
975,509
Total intangible assets
35,478,984
39,869,432
Tangible assets
11
113,970
84,223
Debtors falling due after more than one year
15
183,788
931,998
Investments
12
15,598,573
9,648,546
51,375,315
50,534,199
Current assets
Debtors falling due within one year
1,309,959
1,316,717
Cash at bank and in hand
5,023,498
6,989,991
6,333,457
8,306,708
Creditors: amounts falling due within one year
16
(4,369,262)
(3,436,030)
Net current assets
1,964,195
4,870,678
Total assets less current liabilities
53,339,510
55,404,877
Creditors: amounts falling due after more than one year
17
(43,397,316)
(25,957,865)
Provisions for liabilities
Provisions
19
325,672
241,707
(325,672)
(241,707)
Net assets
9,616,522
29,205,305
Capital and reserves
Called up share capital
22
2,005,000
2,005,000
Share premium account
34,293,204
34,293,204
Other reserves
4,279,489
4,610,128
Profit and loss reserves
(25,870,901)
(8,054,991)
Equity attributable to owners of the parent company
14,706,792
32,853,341
Non-controlling interests
(5,090,270)
(3,648,036)
Total equity
9,616,522
29,205,305
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 27 May 2025 and are signed on its behalf by:
27 May 2025
Mr MJ Thorpe
Mr TD Payne
Director
Director
Company registration number 14364051 (England and Wales)
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Non current assets
Debtors falling due after more than one year
15
788,208
Investments
12
80,672,685
60,845,610
80,672,685
61,633,818
Current assets
Debtors falling due within one year
15
39,419
Cash at bank and in hand
1,766,675
4,610,301
1,806,094
4,610,301
Creditors: amounts falling due within one year
16
(512,815)
(253,479)
Net current assets
1,293,279
4,356,822
Total assets less current liabilities
81,965,964
65,990,640
Creditors: amounts falling due after more than one year
17
(42,693,151)
(25,469,772)
Net assets
39,272,813
40,520,868
Capital and reserves
Called up share capital
22
2,005,000
2,005,000
Share premium account
34,293,204
34,293,204
Other reserves
4,279,489
4,610,128
Profit and loss reserves
(1,304,880)
(387,464)
Total equity
39,272,813
40,520,868
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,248,055 (2023 - £517,910 loss).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 May 2025 and are signed on its behalf by:
27 May 2025
Mr MJ Thorpe
Mr TD Payne
Director
Director
Company registration number 14364051 (England and Wales)
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Share premium account
Capital contribution reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 20 September 2022
-
-
-
-
Period ended 31 December 2023:
Loss for the period
-
-
-
(6,958,324)
(6,958,324)
(732,648)
(7,690,972)
Other comprehensive income:
Currency translation differences
-
-
-
(3,435)
(3,435)
-
(3,435)
Total comprehensive income
-
-
-
(6,961,759)
(6,961,759)
(732,648)
(7,694,407)
Issue of share capital
22
2,005,000
34,293,204
-
-
36,298,204
-
36,298,204
Transfers
-
-
4,740,574
130,446
4,871,020
-
4,871,020
Acquisition of subsidiary
-
-
-
-
-
(3,632,816)
(3,632,816)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
(1,223,678)
(1,223,678)
717,428
(506,250)
Other movements
-
-
(130,446)
-
(130,446)
-
(130,446)
Balance at 31 December 2023
2,005,000
34,293,204
4,610,128
(8,054,991)
32,853,341
(3,648,036)
29,205,305
Year ended 31 December 2024:
Loss for the year
-
-
-
(18,062,430)
(18,062,430)
(1,442,234)
(19,504,664)
Other comprehensive income:
Currency translation differences
-
-
-
(84,119)
(84,119)
-
(84,119)
Total comprehensive income
-
-
-
(18,146,549)
(18,146,549)
(1,442,234)
(19,588,783)
Release from reserves
-
-
(330,639)
330,639
-
-
-
Balance at 31 December 2024
2,005,000
34,293,204
4,279,489
(25,870,901)
14,706,792
(5,090,270)
9,616,522
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Share premium account
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 20 September 2022
-
-
Period ended 31 December 2023:
Loss and total comprehensive income for the period
-
-
-
(517,910)
(517,910)
Issue of share capital
22
2,005,000
34,293,204
-
-
36,298,204
Transfers
-
-
4,740,574
130,446
4,871,020
Other movements
-
-
(130,446)
-
(130,446)
Balance at 31 December 2023
2,005,000
34,293,204
4,610,128
(387,464)
40,520,868
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
(1,248,055)
(1,248,055)
Other movements
-
-
(330,639)
330,639
-
Balance at 31 December 2024
2,005,000
34,293,204
4,279,489
(1,304,880)
39,272,813
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(9,840,351)
(3,172,289)
Interest paid
-
(38,000)
Net cash outflow from operating activities
(9,840,351)
(3,210,289)
Investing activities
Purchase of business
-
(1,007,205)
Cash acquired upon purchase of business
-
1,826,644
Purchase of intangible assets
(26,269)
(190,351)
Purchase of tangible fixed assets
(78,184)
(8,393)
Proceeds from disposal of tangible fixed assets
2,322
-
Purchase of associates
-
(38,365)
Loans made to associates
(3,741,600)
(875,000)
Purchase of minority investments
(3,326,453)
-
Loans repaid/(paid) to other entities
875,000
(875,000)
Interest received
122,261
-
Net cash used in investing activities
(6,172,923)
(1,167,670)
Financing activities
Proceeds from issue of shares
-
1,005,100
Proceeds from borrowings
14,130,900
10,869,100
Purchase of shares in subsidiary from non-controlling interest
-
(506,250)
Net cash generated from financing activities
14,130,900
11,367,950
Net (decrease)/increase in cash and cash equivalents
(1,882,374)
6,989,991
Cash and cash equivalents at beginning of year
6,989,991
Effect of foreign exchange rates
(84,119)
Cash and cash equivalents at end of year
5,023,498
6,989,991
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(861,177)
(53,941)
Interest paid
-
(38,001)
Net cash outflow from operating activities
(861,177)
(91,942)
Investing activities
Purchase of subsidiaries
-
(1,513,455)
Purchase of associates
-
(38,365)
Acquisition of investments
(3,326,453)
Loans made to subsidiaries and associates
(13,784,155)
(5,620,137)
Interest received
122,259
-
Net cash used in investing activities
(16,988,349)
(7,171,957)
Financing activities
Proceeds from issue of shares
-
1,005,100
Repayment of convertible loans
875,000
Proceeds from borrowings
14,130,900
10,869,100
Net cash generated from financing activities
15,005,900
11,874,200
Net (decrease)/increase in cash and cash equivalents
(2,843,626)
4,610,301
Cash and cash equivalents at beginning of year
4,610,301
Cash and cash equivalents at end of year
1,766,675
4,610,301
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
1
Accounting policies
Company information
Correlation One Investments (Europe) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3rd Floor, 114a Cromwell Road, London, UK, SW7 4AG.
The group consists of Correlation One Investments (Europe) Limited and all of its subsidiaries.
1.1
Reporting period
Correlation One Investments (Europe) Limited was incorporated on 20 September 2022 and this is the second reporting period of the company and the group. Given that the prior period was greater than 12 months long it will not be immediately comparable to the present year.
1.2
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.
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. The principal accounting policies adopted are set out below.
1.3
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Correlation One Investments (Europe) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.5
Going concern
In order that the parent company is able to continue funding growth in the subsidiaries, the company shareholders have agreed to provide financial support to the company and its subsidiaries for at least 12 months from the date of approving the financial statements.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.6
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover also represents commissions received from the sale of insurance policies. Commissions are recognised at the inception of the policy, as the insurance is arranged and placed, and are adjusted for commissions refundable in the event of policy cancellation. Commissions earned in respect of newly written policies are not recognised until the 14-day cooling off period has expired.
1.7
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.8
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.9
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
Amortisation 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:
Development costs
20% on a straight line basis
1.10
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:
Fixtures and fittings
25% on a straight line basis
Computers
33% on a straight line basis
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 recognised in the profit and loss account.
1.11
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.12
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.13
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.
1.14
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.15
Equity instruments
Equity instruments issued by the group 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 group.
1.16
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 group’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 if, and only if, there is 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.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.17
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.
1.18
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.
1.19
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.20
Share-based payments
For cash-settled share-based payments, a liability is recognised for the goods and services acquired, measured initially at the fair value of the liability. At each succeeding financial reporting period end and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit or loss for the period.
1.21
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.22
Insurance debtors and creditors
The group acts as an agent of insurance companies in broking and administering insurance products and is liable as a principal for premiums due to those underwriters. The group has followed generally accepted accounting practice for insurance brokers by showing receivables, payables and cash balances relating to insurance business as assets and liabilities of the group itself. Revenue is recognised on such agency arrangements as set out in the turnover accounting policy.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Critical judgements
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Intangible and tangible fixed assets
Determining whether there are indicators of impairment of the group's intangible and tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Clawback provision
At each year end, a provision is made in respect of active policies that may be cancelled before the end of their term, resulting in the payment of refunds. Assumptions regarding dropout rates are made by the directors when computing this provision.
Key sources of estimation uncertainty
Technical reserves creditor
Each year end, the group makes a provision in respect of income deferred at that date to match against future costs, such as claims and customer resolutions. The provision is calculated using an estimate of future costs based on historical averages.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,087,643
3,358,524
France
693,047
253,552
11,780,690
3,612,076
2024
2023
£
£
Other revenue
Interest income
122,261
364
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
7,595
(7,595)
Fees payable to the group's auditor for the audit of the group's financial statements
30,000
15,000
Depreciation of owned tangible fixed assets
46,115
15,474
Amortisation of intangible assets
4,416,717
1,825,707
Share-based payments
190,309
15,357
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
30,000
15,000
Audit of the financial statements of the company's subsidiaries
23,579
9,760
53,579
24,760
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
8
7
-
-
IT, product & data
27
21
-
-
Operations
48
26
-
-
Support
20
16
-
-
Total
103
70
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,433,471
1,927,400
Social security costs
546,240
219,396
-
-
Pension costs
327,181
143,957
6,306,892
2,290,753
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
122,261
364
Income from fixed asset investments
Income from participating interests - associates
544,226
76,663
Total income
666,487
77,027
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
122,261
364
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
3,120,540
1,000,009
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
101,314
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(19,403,350)
(7,690,972)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(4,850,838)
(1,808,917)
Tax effect of expenses that are not deductible in determining taxable profit
1,479,011
506,434
Change in unrecognised deferred tax assets
3,574,455
1,302,483
Under/(over) provided in prior years
(101,314)
Taxation charge
101,314
-
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
10
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2024
40,572,766
1,122,373
41,695,139
Additions - internally developed
26,269
26,269
At 31 December 2024
40,572,766
1,148,642
41,721,408
Amortisation and impairment
At 1 January 2024
1,678,843
146,864
1,825,707
Amortisation charged for the year
4,079,508
337,209
4,416,717
At 31 December 2024
5,758,351
484,073
6,242,424
Carrying amount
At 31 December 2024
34,814,415
664,569
35,478,984
At 31 December 2023
38,893,923
975,509
39,869,432
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
11
Tangible fixed assets
Group
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2024
68,738
30,959
99,697
Additions
59,926
18,258
78,184
Disposals
(12,337)
(12,337)
At 31 December 2024
116,327
49,217
165,544
Depreciation and impairment
At 1 January 2024
10,773
4,701
15,474
Depreciation charged in the year
33,942
12,173
46,115
Eliminated in respect of disposals
(10,015)
(10,015)
At 31 December 2024
34,700
16,874
51,574
Carrying amount
At 31 December 2024
81,627
32,343
113,970
At 31 December 2023
57,965
26,258
84,223
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Tangible fixed assets
(Continued)
- 28 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
36,636,012
33,622,227
Loans to subsidiaries
13
26,598,278
17,310,476
Investments in associates
14
5,871,205
7,542,370
7,711,027
7,806,731
Loans to associates
14
6,400,915
2,106,176
6,400,915
2,106,176
Unlisted investments
3,326,453
3,326,453
15,598,573
9,648,546
80,672,685
60,845,610
Movements in fixed asset investments
Group
Shares in associates
Loans to associates
Other investments
Total
£
£
£
£
Cost or valuation
At 1 January 2024
7,542,370
2,106,176
-
9,648,546
Additions
-
4,294,739
3,326,453
7,621,192
Associate loss
(1,575,461)
-
-
(1,575,461)
Disposals
(95,704)
-
-
(95,704)
At 31 December 2024
5,871,205
6,400,915
3,326,453
15,598,573
Carrying amount
At 31 December 2024
5,871,205
6,400,915
3,326,453
15,598,573
At 31 December 2023
7,542,370
2,106,176
-
9,648,546
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
Loans to subsidiaries and associates
Other investments
Total
£
£
£
£
Cost or valuation
At 1 January 2024
41,428,958
19,416,652
-
60,845,610
Additions
3,013,785
13,582,541
3,326,453
19,922,779
Disposals
(95,704)
-
-
(95,704)
At 31 December 2024
44,347,039
32,999,193
3,326,453
80,672,685
Carrying amount
At 31 December 2024
44,347,039
32,999,193
3,326,453
80,672,685
At 31 December 2023
41,428,958
19,416,652
-
60,845,610
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Architech Software Limited
3rd Floor 114a Cromwell Road, London, England, SW7 4AG
Ordinary
75.00
-
AFX Ventures Limited
3rd Floor 114a Cromwell Road, London, England, SW7 4AG
Ordinary
100.00
-
Waggel Limited
3rd Floor 114a Cromwell Road, London, England, SW7 4AG
Ordinary
0
75.00
Kibble Ltd
3rd Floor 114a Cromwell Road, London, England, SW7 4AG
Ordinary
0
75.00
Waggel Membership Limited
3rd Floor 114a Cromwell Road, London, England, SW7 4AG
Ordinary
0
75.00
Kozoo SAS
10-14 rue Jean Perrin, 17000 La Rochelle, France
Ordinary
80.00
-
14
Associates
Details of associates at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Vet-AI Ltd
C/O Azets, 12 King Street, Leeds, England, LS1 2HL
Ordinary
21.55
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
99,572
82,589
Other debtors
830,461
1,116,906
Prepayments and accrued income
379,926
117,222
39,419
1,309,959
1,316,717
39,419
-
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
788,248
-
788,208
Other debtors
183,788
143,750
183,788
931,998
-
788,208
Total debtors
1,493,747
2,248,715
39,419
788,208
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Trade creditors
1,838,697
1,140,771
89,717
6,368
Other taxation and social security
561,301
378,146
190,524
-
Technical reserves creditor
20
861,769
548,912
Other creditors
94,067
80,736
Accruals and deferred income
1,013,428
1,287,465
232,574
247,111
4,369,262
3,436,030
512,815
253,479
Included in trade creditors as at the year end are amounts of £1,361,903 (2023: £797,553) relating to monies and other assets held on behalf of the insurer.
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
18
42,693,151
25,469,772
42,693,151
25,469,772
Other creditors
704,165
488,093
43,397,316
25,957,865
42,693,151
25,469,772
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Creditors: amounts falling due after more than one year
(Continued)
- 31 -
Included in other creditors due after one year are amounts due to non-controlling interest shareholders, which are interest free, unsecured and repayable in 2029.
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Loans from joint venture partners
42,693,151
25,469,772
42,693,151
25,469,772
Payable after one year
42,693,151
25,469,772
42,693,151
25,469,772
During the prior year the company issued the following loan notes:
2,500,000 "A" loan notes of £1 each repayable on 4 August 2033. The loan notes are unsecured and do not bear interest. In line with FRS 102 s.11, the loans have been remeasured at amortised cost at a discount rate of 8.5%.
6,000,000 "B" loan notes of £1 each repayable on 4 August 2033. The loan notes are unsecured and do not bear interest. In line with FRS 102 s.11, the loans have been remeasured at amortised cost at a discount rate of 8.5%.
1,142,622 "C" loan notes of £1 each repayable 30 August 2033. The loan notes are unsecured and accrue interest at Bank of England base rate + 8% on a PIK basis.
8,616,100 "D" loan notes of £1 each repayable 4 August 2033. The loan notes are unsecured and accrue interest at Bank of England base rate + 8% on a PIK basis.
10,869,000 "E" loan notes of £1 each repayable 30 August 2033. The loan notes are unsecured and accrue interest at Bank of England base rate + 2.5% on a PIK basis.
19
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Clawback provision
325,672
241,707
-
-
Movements on provisions:
Clawback provision
Group
£
At 1 January 2024
241,707
Additional provisions in the year
83,965
At 31 December 2024
325,672
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Provisions for liabilities
(Continued)
- 32 -
A provision is maintained to meet potential commission clawbacks for policies that could cancel in the future.
20
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from Technical reserves creditor
861,769
548,912
-
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
327,181
143,957
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000,000
2,000,000
2,000,000
2,000,000
Carry shares of £1 each
5,000
5,000
5,000
5,000
2,005,000
2,005,000
2,005,000
2,005,000
The Ordinary shares and the Carry shares rank pari passu in respect of both voting and economic rights.
23
Analysis of changes in net debt - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
6,989,991
(1,966,493)
5,023,498
Borrowings excluding overdrafts
(25,469,772)
(17,223,379)
(42,693,151)
(18,479,781)
(19,189,872)
(37,669,653)
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
24
Analysis of changes in net debt - company
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
4,610,301
(2,843,626)
1,766,675
Borrowings excluding overdrafts
(25,469,772)
(17,223,379)
(42,693,151)
(20,859,471)
(20,067,005)
(40,926,476)
25
Cash absorbed by group operations
2024
2023
£
£
Loss after taxation
(19,504,664)
(7,690,972)
Adjustments for:
Share of results of associates and joint ventures
1,575,461
264,361
Taxation charged
101,314
Finance costs
3,120,540
1,000,009
Investment income
(666,487)
(77,027)
Amortisation and impairment of intangible assets
4,416,717
1,825,707
Depreciation and impairment of tangible fixed assets
46,115
15,474
Increase in provisions
83,965
54,577
Movements in working capital:
Increase in debtors
(134,555)
(177,568)
Increase in creditors
1,121,243
1,613,150
Cash absorbed by operations
(9,840,351)
(3,172,289)
26
Cash absorbed by operations - company
2024
2023
£
£
Loss after taxation
(1,248,055)
(517,910)
Adjustments for:
Finance costs
3,092,479
992,197
Investment income
(2,925,517)
(781,707)
Movements in working capital:
Increase in debtors
(39,420)
-
Increase in creditors
259,336
253,479
Cash absorbed by operations
(861,177)
(53,941)
CORRELATION ONE INVESTMENTS (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
27
Events after the reporting date
Since the year end the Company has acquired a strategic investment in a Spanish-based entity in the pet technology sector, representing 30.53% of the share capital of the business.
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