Company Registration No. 11648369 (England and Wales)
Bluechain Ltd
Annual Accounts
for the year ended 31 October 2024
Bluechain Ltd
Annual Accounts
Contents
Bluechain Ltd
Company Information
for the year ended 31 October 2024
Directors
Michalakis Christofi
Conectid Limited
Secretary
Conectid Limited
Company Number
11648369 (England and Wales)
Registered Office
Conectid Group
20 - 22 Wenlock Road,
London
N1 7GU
England
Bluechain Ltd
Statement of financial position
as at 31 October 2024
Intangible assets
505,000
450,000
Cash at bank and in hand
22,581
25,486
Net current assets
102,337
115,240
Total assets less current liabilities
607,337
565,240
Creditors: amounts falling due after more than one year
(12,447)
(25,350)
Net assets
594,890
539,890
Called up share capital
500,000
500,000
Profit and loss account
94,890
39,890
Shareholders' funds
594,890
539,890
For the year ending 31 October 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 15 July 2025 and were signed on its behalf by
Conectid Limited
Director
Company Registration No. 11648369
Bluechain Ltd
Notes to the Accounts
for the year ended 31 October 2024
Bluechain Ltd is a private company, limited by shares, registered in England and Wales, registration number 11648369. The registered office and principal place of business is Conectid Group, 20 - 22 Wenlock Road, , London, N1 7GU, England.
2
Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts. Actual results may differ from these estimates.
Key Judgments:
2.1. Going Concern Assessment: The Directors have made critical judgments regarding the Company's ability to continue as a going concern despite material uncertainties arising from restricted access to UK banking facilities. This assessment considered:
- Alternative banking arrangements through international facilities
- Group financial support commitments
- Cash flow forecasts under stressed scenarios
- Legal remedies being pursued
2.2. Intangible Asset Valuation: Management exercised significant judgment in revaluing intangible assets by £55,000, based on:
- Revised projected cash flows from developed technologies
- Market assessment of blockchain and integrated technology solutions
- Strategic partnerships and commercial pipeline developments
2.3. Contingent Liabilities Recognition: Judgment was applied in determining that no provision should be recognised for ongoing legal proceedings, as neither the likelihood nor amount of potential outflows can be reliably measured.
2.3. Key Sources of Estimation Uncertainty:
- Recovery of Legal Claims: The Company is pursuing remedies against financial institutions and regulatory bodies. The timing and quantum of any recoveries remain uncertain and dependent on legal proceedings.
- Intangible Asset Recoverable Amounts: The carrying value of intangible assets (£505,000) is sensitive to assumptions regarding future cash flows and market conditions in the technology sector.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.
The accounts are presented in £ sterling.
Intangible fixed assets (including purchased goodwill and patents) are included at cost less accumulated amortisation.
Expenditure on research and development is written off in the year in which it is incurred.
Bluechain Ltd
Notes to the Accounts
for the year ended 31 October 2024
Tangible fixed assets and depreciation
Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
Year ended 31 October 2024::
Gain on revaluation of intangible assets: £55,000
The exceptional gain arose from the Directors' annual review of intangible fixed assets. Based on improved commercial prospects and revised projected cash flows from the Company's technology portfolio, particularly in blockchain-secured database platforms and AI-driven solutions, the carrying value was increased. This revaluation reflects:
Strategic partnerships secured during the year
Enhanced market positioning in integrated technology systems
Successful proof-of-concept deployments with key clients
Bluechain Ltd
Notes to the Accounts
for the year ended 31 October 2024
Assessment:
The Directors have prepared these financial statements on a going concern basis, having carefully evaluated the Company's capacity to meet obligations for at least twelve months from the approval date of these accounts. Despite operational challenges, the Directors maintain confidence in the Company's ability to continue operations, supported by the Group's commitment to provide necessary financial support.
Banking Facility Restrictions
Since 2019, the Group has experienced significant disruptions to UK banking facilities arising from identity misappropriation incidents. These have resulted in:
- Restricted access to normal UK banking services
- Requirement to operate through alternative international banking arrangements
- Extended payment terms with suppliers (60-90 days)
- Implementation of commission-based sales models
Mitigation Measures
Management has implemented comprehensive measures to ensure operational continuity:
Financial Arrangements:
- Secured alternative banking facilities through offshore jurisdictions
- Established internal cash pooling arrangements within the Group
- Obtained commitment from Conectid Limited for financial support of up to £1.25 million
Operational Adaptations:
- Transitioned to digital payment methods where possible
- Negotiated extended credit terms with key suppliers
- Implemented cost reduction measures
Legal Actions:
- Pursuing claims against financial institutions for restoration of services
- Seeking damages for operational losses and reputational harm
- Engaged specialist legal counsel for regulatory matters
Cash Flow Projections
Detailed forecasts for twelve months from approval date demonstrate the Company can meet obligations under base case and stressed scenarios, assuming:
- Continued access to alternative banking arrangements
- Maintenance of current trading levels
- Ongoing financial support from the parent company
Material Uncertainty
While mitigation measures are in place, material uncertainty exists regarding:
- Timeline for restoration of normal UK banking facilities
- Success of legal proceedings against financial institutions
- Potential impact of continued operational constraints
The financial statements do not include adjustments that would result if the Company were unable to continue as a going concern.
Bluechain Ltd
Notes to the Accounts
for the year ended 31 October 2024
4
Intangible fixed assets
Other
At 1 November 2023
500,000
At 31 October 2024
555,000
At 31 October 2024
505,000
At 31 October 2023
450,000
The Company's intangible fixed assets comprise R&D, patents and similar intellectual property rights. These assets are initially recorded at cost and subsequently amortised based on their expected economic life, which is reviewed annually. The Company does not apply a fixed amortisation period; instead, the Directors assess the economic benefit and useful life of each asset annually, adjusting amortisation rates accordingly.
During the year ended 31 October 2024, the Directors conducted their annual review and revalued the intangible assets based on revised projected cash flows from products developed. This resulted in a revaluation gain of £55,000, reflecting improved commercial prospects for the Company's technology portfolio. The revaluation was recognised in the income statement as required under FRS 102 for assets not held under the revaluation model.
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Tangible fixed assets
Plant & machinery
Amounts falling due within one year
Amounts due from group undertakings etc.
45,502
30,625
Bluechain Ltd
Notes to the Accounts
for the year ended 31 October 2024
7
Investments held as current assets
2024
2023
Unlisted investments
34,254
34,254
8
Creditors: amounts falling due after more than one year
2024
2023
Amounts owed to group undertakings and other participating interests
12,447
25,350
Allotted, called up and fully paid:
500,000 Ordinary shares of £1 each
500,000
500,000
Legal Proceedings
The Company, as part of the Connected Group, is actively pursuing legal remedies against various parties including:
Financial Institutions: Claims for wrongful restriction of banking services, operational losses, and reputational damage arising from misidentification incidents.
Regulatory Bodies: Proceedings regarding failure to correct erroneous records and provide appropriate oversight of financial institutions.
Law Enforcement Agencies: Claims related to mishandling of identity theft matters and failure to properly investigate reported crimes.
Recognition and Measurement
No provisions have been recognised as:
- The outcome of proceedings remains uncertain
- Reliable estimates of amounts recoverable cannot be made
- Success depends on complex legal determinations
Potential Recoveries
Any amounts recovered will be applied first to compensate affected parties. Surplus amounts will be donated to the Fair and Correct Foundation to support fraud victims and advocate for systemic reforms.
Disclosure Considerations
These disclosures have been prepared to:
- Comply with FRS 102 requirements
- Maintain the Company's position in ongoing proceedings
- Avoid prejudicing potential recoveries
The Directors continue to work with legal counsel to pursue all available remedies while protecting the Company's interests.
Bluechain Ltd
Notes to the Accounts
for the year ended 31 October 2024
11
Transactions with related parties
All transactions with group companies have been conducted on terms comparable to those with independent third parties, including the pricing of goods, services, and typical settlement terms.
However, due to the exceptional circumstances described in Notes 13-15, Conectid Limited has provided enhanced financial support including:
- Extended credit terms beyond normal commercial arrangements
- Conversion of certain payables to long-term loans
- Contingency funding commitments estimated at £1.25 million
These supportive arrangements, while not strictly at arm's length, are necessary to ensure operational continuity and are disclosed in accordance with FRS 102 Section 33.
During the year, key related party transactions included:
- Amounts due from group undertakings: £45,502 (2023: £30,625)
- Amounts due to group undertakings: £12,447 (2023: £25,350)
On 9 February 2021, Conectid Limited obtained a 100% interest in the company.
Conectid Limited is registered as a limited company in England and Wales, Company No. 10810165. Registered office: Conectid Group, 400 Thames Valley Park Drive, Thames Valley Park, Reading, Berkshire, England, RG6 1PT, United Kingdom. www.conectid.com
13
Post balance sheet events
Banking Facility Developments
Subsequent to year end, the Company experienced further disruptions to UK banking facilities. Key developments include:
November 2024 - January 2025:
- Temporary suspension of certain payment processing capabilities
- Implementation of enhanced alternative banking arrangements
- Escalation of legal proceedings against financial institutions
Resolution Status: Legal proceedings initiated in early 2024 achieved partial resolution by September 2024, resulting in:
- Restoration of limited banking functionality
- Agreement on framework for full service restoration
- Commitment to address historical operational impacts
Operational Impact
The Directors implemented immediate measures to ensure business continuity:
- Diversified banking relationships across multiple jurisdictions
- Enhanced treasury management procedures
- Accelerated migration to digital payment platforms
Going Concern Implications:
These events have been considered in the going concern assessment. While creating additional operational challenges, implemented measures ensure the Company can continue to meet its obligations.
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Average number of employees
During the year the average number of employees was 1 (2023: 1).