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Registered number:
For the Year Ended
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mkodo Limited
Company Information
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mkodo Limited
Contents
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mkodo Limited
Strategic Report
For the Year Ended 31 December 2024
This strategic report provides a concise overview of the financial performance and position of mkodo Limited for the fiscal year ended 31st December 2024.
mkodo continues its commitment to clients by reliably delivering projects, investing in security, infrastructure, innovative new products and our team. The annual accounts reflect our commitment to financial transparency, sustainable growth, and long-term value creation.
The Executive team has focused on strategic investments and operational efficiencies to achieve our objectives of delivering value to our clients and innovating and scaling GeoLocs solutions. The past year has been marked by milestones, including strengthened recurring revenue streams through customer retention, new market penetration, and product innovation. We are proud, as a company, to be investing in our people who drive our business and positively contribute to the UK economy. Key Highlights mkodo Limited continued to focus on innovation and product development to enhance its competitiveness in the market. Our flagship product, GeoLocs, saw significant growth in 2024, both in terms of the Markets it launched in as well as the Revenue growth. The year 2024 marked a significant year for mkodo and our partners, when we launched several significant Apps into the market, with the high levels of quality and useability that is expected of a mkodo delivered product. This further strengthened our relationships with key clients, and as a business, we remain committed to delivering value in partnership to support their digital roadmap in the years ahead. With a clear strategic vision, mkodo is well-equipped for continued growth and long-term profitability. Financial Performance We continued our growth into FY 2024 with total revenues reaching £14m resulting in a 7% increase from the previous year. Gross profit margin remained healthy at 37% due to effective cost management strategies and optimized operational efficiencies. We are further pursuing our growth plan by increasing our Marketing spend as well as investing into appropriate software tooling across the business as we scale. These resulted in operating expenses increasing by 6.5% from the previous year with a net profit of £2.1m for the fiscal year. mkodo Limited maintains a strong financial position under the stewardship of the executive team, with total assets valued at £9,669,920 and total liabilities of £2,551,495. The company's solid liquidity position ensures its ability to meet short-term obligations and invest in the future growth.
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mkodo Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
The technology market is fast-paced and dynamic, with constant changes ranging from AI advancements to App Store updates. We continuously monitor and review developments, as well as our clients' needs, against emerging market trends. By staying agile with our service offerings and evolving our business plans throughout the fiscal year, we can accommodate changes in the market climate.
Key commercial risks include the ever-evolving Betting and Gaming industry and the political landscape. Our Compliance Manager oversees our corporate risk, ensuring that we stay current with changes that may impact our industry. Liquidity risk - The company effectively manages its cash on hand to ensure that all liabilities can be paid when due, while, where possible, contributing to the group's overall cash flow position. Compliance risk - mkodo successfully achieved ISO27001 accreditation in February 2024. The company has established solid processes, policies, and training programs for compliance and security within the business. Currency risk - the company works closely with its financial services provider and parent company to mitigate currency risk.
This report was approved by the board and signed on its behalf.
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mkodo Limited
Directors' Report
For the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors who served during the year were:
The profit for the year, after taxation, amounted to £2,130,039 (2023 -£2,074,197).
The directors do not recommend payment of a final dividend.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Key objectives for the upcoming year include entering new markets with our best-in-market product offerings, working in partnership with our clients to achieve the highest levels of client satisfaction and continually innovating our product offerings and business processes.
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mkodo Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
The directors have chosen to set out the disclosures relating to financial risk objectives & policies and information on exposure to price risk, credit risk, liquidity risk, and cash flow risk in the strategic report.
There have been no significant events affecting the Company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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mkodo Limited
Independent Auditors' Report to the Members of mkodo Limited
We have audited the financial statements of mkodo Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 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 Auditors' 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.
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mkodo Limited
Independent Auditors' Report to the Members of mkodo Limited (continued)
In our opinion, based on the work undertaken in the course of the 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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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mkodo Limited
Independent Auditors' Report to the Members of mkodo Limited (continued)
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations.
°Detecting and responding to the risks of fraud.
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risk identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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mkodo Limited
Independent Auditors' Report to the Members of mkodo Limited (continued)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG
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mkodo Limited
Statement of Income and Retained Earnings
For the Year Ended 31 December 2024
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mkodo Limited
Registered number: 03991840
Statement of Financial Position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 25 form part of these financial statements.
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
mkodo Limited is a private company limited by members capital incorporated in England and Wales. The registered office and principal place of business is Third Floor, 2 Throgmorton Avenue, London, EC2N 2DG.
The nature of the company's operation and its principal activity is the creation of customised user experiences and best-in-class apps and websites exclusively for sportsbook, casino and lottery operators.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirement of Section 7 Statement of Cash Flows - the requirement of Section 3 Financial Statement Presentation paragraph 3.17 (d) - the requirement of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments - the requirement of Section 33 Related Party Disclosures paragraph 33.7 This information is included in the consolidated financial statements of Pollard Banknote Limited as at 31 December 2024 and these financial statements may be obtained from its website, www.pollardbanknote.com.
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The company generated a profit after tax of £2,130,039 (2023: £2,074,197) for the year ended 31 December 2024. At the balance sheet date the company had net assets of £7,118,425 (2023: £4,988,386) including cash at bank of £88,934 (2023: £71,444).
At the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Long term contract income is recognised in line with progress on the project or where relating to a quantifiable service a proportion of the income is recognised based on the amount of that service provided during the period. The amount by which turnover exceeds payments on account is classified as accrued income and included in debtors; to the extent that payments on account exceed relevant turnover and work in progress balances, the excess is included as deferred income. Where a long term contract is anticipated to make a foreseeable loss the loss is recognised in full during the period and is included as a provision.
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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.
Amortisation is provided on the following bases:
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.
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s (or CGU’s) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Accrued income Revenue from the design and development contracts is assessed on an individual basis with revenue earned being ascertained based on time spent to date. The revenue earned in excess of the revenue billed is recognised as accrued income. The time costs incurred on a particular contract are assessed regularly and subject to management review, who make an estimate of the recoverable value of the contract. Loss making contracts The performance on the design and development contracts is assessed regularly by the management, who assess the overall future expected income and costs. Where a contract is expected to be loss making the management will provide for the future expected loss in full at the reporting date. Amortisation of intangible fixed assets Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful lives once the asset comes in to economic use, as ascertained by management.
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Analysis of turnover by country of destination:
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Page 17
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Page 18
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Page 20
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Page 21
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Page 22
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Share premium account
Capital redemption reserve
Profit and loss account
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 £239,598 (2023: £191,292). Contributions totalling £55,875 (2023: £44,984) were payable to the fund at the reporting date and are included in creditors.
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mkodo Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
The Company is a subsidiary undertaking of Pollard Banknote Limited which is also the ultimate controlling party.
The group in which they are consolidated is that headed by Pollard Banknote Limited whose registered office address is 140 Otter Street, Winnipeg, Manitoba, Canada, R3T 0M8.
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