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Registered number: 11604773
PIXXLES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
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PIXXLES LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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PIXXLES LIMITED
CONTENTS
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Independent auditors' report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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PIXXLES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 OCTOBER 2023
The principal activity of Pixxles Limited ("the Company") is that of financial payment services.
The 2023 financial year marked a period of strong operational progress for Pixxles. Following the successful launch of our core offering in the prior year—a merchant account linked to an e-wallet—Pixxles focused on scaling our platform to support increased transaction volumes and expanded service offerings.
Throughout the year, the Company made significant progress in improving its infrastructure, enhancing onboarding processes, strengthening risk and compliance frameworks, and diversifying its supplier network to bolster resilience and operational efficiency. These enhancements were necessary to meet increasing regulatory expectations from the Financial Conduct Authority (FCA), particularly in light of the introduction and implementation of the Consumer Duty.
Pixxles maintained its unwavering commitment to customer support, which continues to be a key differentiator in a competitive market. Our service ethos aligns naturally with the principles of the Consumer Duty, placing good customer outcomes at the heart of everything we do. In 2023, we implemented further customer-centric controls, including enhanced transparency in merchant communications, improvements in dispute resolution handling, and robust vulnerability assessments.
Page 1
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PIXXLES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 OCTOBER 2023
Principal risks and uncertainties
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Pixxles is exposed to several external and internal risks that the Directors continuously monitor and manage. Key risks in the 2023 period include:
Economic Risks
Macroeconomic Pressures on E-Commerce:
Inflation and rising interest rates continued to affect consumer purchasing power. This has shifted spending behaviour away from discretionary items toward essential goods.
Business Risks
Competitive Landscape for Card Payments:
Competitive pressures intensified in the UK payment processing market. Pixxles continued to mitigate this by focusing on innovation, value-added services (e.g. detailed analytics dashboards, flexible settlement options), and differentiated service delivery.
Labour Market Pressures:
Inflationary wage expectations persisted in 2023. To control costs while retaining talent, Pixxles enhanced its staff development framework, introduced performance-linked incentives, and invested in automation to reduce reliance on manual processes.
Operational Risks
Third-Party Dependencies:
The Company remains reliant on acquiring partners and technical providers for card processing and fund settlement.
Financial Crime & Compliance Risks
Increased Financial Crime Attempts:
Rising economic hardship and geopolitical instability have contributed to a growing volume of fraud attempts across the payments landscape. Pixxles strengthened its anti-financial crime systems, implemented automated transaction monitoring enhancements, and undertook mandatory compliance refreshers for all staff.
Financial key performance indicators
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Pixxles saw continued growth in merchant onboarding, with an increase in both the number of new accounts and active daily transactions. While revenues remain modest relative to large competitors, there has been improvements in transaction volume and gross margin due to a higher-quality merchant mix and efficiency gains.
Investment in regulatory compliance, including upgrades to our AML and onboarding platforms, remained a significant cost centre, reflecting our commitment to safe, compliant operations. Marketing spend was refined to focus on ROI-driven campaigns.
Page 2
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PIXXLES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 OCTOBER 2023
Other key performance indicators
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Marketing and growth initiatives delivered solid performance:
• Increased organic traffic to www.pixxles.com, attributed to improved SEO and content strategy.
• Enhanced digital advertising efficiency through data-driven campaign iteration.
• Improved merchant reviews, evidencing satisfaction with support and service reliability.
Section 172 Statement
The Directors have had regard to the matters set out in Section 172 of the Companies Act 2006, and consider that the Company has acted in good faith to promote the success of the business for the benefit of its stakeholders.
Shareholders
The Board continues to maintain open lines of communication with the Company’s Ultimate Beneficial Owner (UBO), ensuring alignment on long-term growth strategies and risk appetite.
Customers
Customer-centricity remains central to our strategy. We have embedded Consumer Duty principles across our operations and conducted reviews of product design, pricing structures, and complaint handling to safeguard customer outcomes.
Suppliers
The Company has formalised supplier governance processes, implementing performance metrics and business continuity assessments to ensure reliable partnerships.
Community
Pixxles further advanced its social commitments by upholding diversity and meritocracy within its team culture. This has contributed to overall employee satisfaction and an employee turnover rate of zero for the financial year.
Regulatory Compliance
Pixxles has established compliance framework that will continue to evolve alongside the growth and complexity of the business. In addition to conducting its own internal compliance reviews, Pixxles engages with highly qualified third-party consultants, auditors, and legal counsel to ensure adherence to all FCA Regulatory Requirements.
This report was approved by the board and signed on its behalf.
Page 3
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PIXXLES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 28 OCTOBER 2023
The directors present their report and the financial statements for the period ended 28 October 2023.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and of the profit or loss of the Company for that period.
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;
∙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 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.
The loss for the period, after taxation, amounted to £389,165 (2022 - loss £1,242,366).
The directors who served during the period were:
Looking ahead, Pixxles will continue developing its prepaid card product, with plans to pilot its use among select merchant cohorts first. The Company also aims to complete regulatory filings and integrations required for European expansion. These initiatives are expected to grow revenue streams while maintaining the Company’s lean cost base.
Operationally, a continued focus on automation, cyber resilience, and regtech implementation will support scalable, compliant growth. Regulatory engagement will remain a key focus, with proactive submissions and readiness assessments conducted in partnership with external advisors.
Page 4
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PIXXLES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 OCTOBER 2023
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Page 5
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PIXXLES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIXXLES LIMITED
We have audited the financial statements of Pixxles Limited (the 'Company') for the period ended 28 October 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity 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).
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 28 October 2023 and of its loss for the period 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 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.
Conclusions relating to going concern
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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.
Page 6
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PIXXLES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIXXLES LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
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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 period 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.
Matters on which we are required to report by exception
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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.
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, or returns adequate for our audit have not been received from branches not visited by us; or
∙the 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
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As explained more fully in the Directors' responsibilities statement set out on page 4, 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 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 Company or to cease operations, or have no realistic alternative but to do so.
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PIXXLES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIXXLES LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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:
∙Enquiring of management around actual and potential litigation and claims.
∙Enquiring of company staff in finance and compliance functions to identify any instances of non-compliance with laws and regulations.
∙Reviewing minutes of meeting of those charged with governance
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
∙Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
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PIXXLES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIXXLES LIMITED (CONTINUED)
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
Michael Wedge FCA (Senior statutory auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
25 July 2025
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PIXXLES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 OCTOBER 2023
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Loss for the financial period
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There was no other comprehensive income for 2023 (2022:£NIL).
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The notes on pages 14 to 25 form part of these financial statements.
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Page 10
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PIXXLES LIMITED
REGISTERED NUMBER: 11604773
STATEMENT OF FINANCIAL POSITION
AS AT 28 OCTOBER 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Safeguarded funds liability
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Net current (liabilities)/assets
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by
The notes on pages 14 to 25 form part of these financial statements.
Page 11
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PIXXLES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 OCTOBER 2023
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Shares issued during the year
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Total transactions with owners
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At 1 November 2022 (as previously stated)
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Prior year adjustment - correction of error
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At 1 November 2022 (as restated)
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Comprehensive income for the period
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Total comprehensive income for the period
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The notes on pages 14 to 25 form part of these financial statements.
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Page 12
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PIXXLES LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 OCTOBER 2023
Cash flows from operating activities
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Loss for the financial period
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Amortisation of intangible assets
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Depreciation of tangible assets
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Increase/(decrease) in creditors
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Increase safeguarded funds liability
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Increase in safeguarded funds held
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of period
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Cash and cash equivalents at the end of period
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Cash and cash equivalents at the end of period comprise:
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The notes on pages 14 to 25 form part of these financial statements.
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Page 13
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
The principal activity of Pixxles Limited ("the Company") is that of financial payment services.
The Company is a private company limited by shares and is incorporated in England and Wales.
The Registered Office address is Cannon Place, 78 Cannon Street, London, United Kingdom, EC4N 6AF.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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.
The following principal accounting policies have been applied:
The financial statements have been prepared on the going concern basis which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of the approval of these financial statements, and will be able to meet its debt as they fall due.
During the year, the Company has increased sales significantly and has a gross profit. The period after year end shows that the sales are continuing to grow as the business onboards more merchants. This is supported by strong cashflow forecasts which the directors regularly review and are confident in the businesses ability to continue as a going concern for the foreseeable future.
Page 14
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Page 15
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
2.Accounting policies (continued)
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The Company only enters basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
(i) Financial assets
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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
Page 17
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled, or expires.
(iii) Offsetting
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.
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Financial payment services
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All turnover arose within the United Kingdom.
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The operating loss is stated after charging:
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Other operating lease rentals
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During the period, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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Fees payable to the Company's auditors in respect of:
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Taxation compliance services
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Page 18
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the period was as follows:
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Company contributions to defined contribution pension schemes
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During the period retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.
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Page 19
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
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Factors affecting tax charge for the period/year
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The tax assessed for the period/year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 22.5% (2022 - 19%) as set out below:
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Loss on ordinary activities before tax
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Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 22.5% (2022 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Short-term timing difference leading to an increase (decrease) in taxation
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Unrelieved tax losses carried forward
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Other differences leading to an increase (decrease) in the tax charge
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Total tax charge for the period/year
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Factors that may affect future tax charges
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The Company has carried forward tax losses of £3,434,000 that are available to offset against future trading profits.
Page 20
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
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Charge for the period on owned assets
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Page 21
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
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Charge for the period on owned assets
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Prepayments and accrued income
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Page 22
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
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The Company holds funds on behalf of clients in accordance with the Electronic Money Regulations of its regulator, the Financial Conduct Authority. Included within creditors due within one year is the corresponding liability of monies owed back to clients of the Company.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Page 23
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
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Safeguarded funds liability
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Safeguarded funds liability
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The Company holds funds on behalf of clients in accordance with the Electronic Money Regulations of its regulator, the Financial Conduct Authority. Included within safeguarded funds held is the corresponding asset held by the Company which are owed back to clients.
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Allotted, called up and fully paid
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3,510,733 (2022 - 3,510,733) Ordinary shares of £1.00 each
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The comparative information in these financial statements has been restated from the figures previously reported in the prior year financial statements to reflect the following:
- increase in accruals. The impact of this adjustment is an increase in accruals of £85,837 and administrative expenses of the same amount. This had no impact on the corporation tax payable.
The impact of this adjustment has decreased profit and net assets as previously reported by £85,837.
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 £1,320 (2022: £1,355). Contributions totalling £645 (2022: £Nil) were payable to the fund at the reporting date and are included in creditors.
Page 24
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PIXXLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 OCTOBER 2023
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Commitments under operating leases
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At 28 October 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Related party transactions
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Included within other creditors is a balance of £59,961 (2022: other debtor of £165,445) owed to one of the directors. This balance is unsecured and interest free and is repayable on demand.
An amount included in other debtors is a balance of £1,276,606 (2022: £nil) paid to a company with a shareholder and director in common.
Included in administrative expenses is intermediary service fees of £618,765 (2022: £nil) paid to a company with a common shareholder and director.
Included in administrative expenses is commission fees of £110
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The ultimate controlling party is A Fairchild.
Page 25
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