| Registered number |
| Inovattec Ltd | |
| Report and accounts | |
| Contents | |
| Page | |
| Company information | 1 |
| Directors' report | 2 - 3 |
| Strategic report | 4 - 5 |
| Independent auditor's report | 6 - 9 |
| Income statement | 10 |
| Statement of comprehensive income | 11 |
| Statement of financial position | 12 |
| Statement of changes in equity | 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15 - 23 |
| Company Information |
| Directors |
| Auditors |
| Unit 5 Swaker Yard |
| 2b Theobald Street |
| Borehamwood |
| Herts |
| WD6 4SE |
| Registered office |
| 71-75 Shelton Street |
| Covent Garden |
| London |
| WC2H 9JQ |
| Registered number |
| Registered number: 11645199 | |||||||
| Directors' Report | |||||||
| The directors present their report and financial statements for the year ended |
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| Principal activities | |||||||
| Directors | |||||||
| The following persons served as directors during the year: | |||||||
| Directors' responsibilities | |||||||
| The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 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 and then apply them consistently; | ||||||
| ● | make judgements and 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 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. | |||||||
| Disclosure of information to auditors | |||||||
| Each person who was a director at the time this report was approved confirms that: | |||||||
| ● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
| ● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. | ||||||
| This report was approved by the board on |
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| Mr Borja Del Castillo Ramirez | |||||||
| Director | |||||||
| Strategic Report | |||||||
| The directors present their strategic report for the period ended 31 December 2024. | |||||||
| Business review | |||||||
| The company provides software and consulting services. These services include modules for the fulfilment of digital cross-border payments, alternative payment methods integration, reporting and reconciliation, wallet solutions, as well as related consulting services. Revenue is generated from commissions assessed on the transaction volumes processed through our proprietary technology. The period to 31 December 2024 is the seventh year of operations for the company. Regulatory reforms in our principal customer's main market opened the sector to large, well-capitalised incumbents and fintechs. The intensified competition compressed margins and reduced overall transaction volumes, curtailing commission income. During the year, the company recognised total turnover of £7,253,744 (2023 - £26,643,598). The profit on ordinary activities before taxation of the company decreased to £5,468,243 (2023 - £24,934,269) and the profit after taxation decreased to £4,042,630 - (2023 - £19,068,660). The net assets at the year end were £15,418,470 (2023 - £19,078,920). |
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| Principal risks and uncertainties | |||||||
| The Directors establish policies and manage risks to help the business reach its long-term growth goals while maintaining a responsible risk management framework. Foreign currency risk, credit risk, and liquidity risk are the three primary risks associated with the Company's financial instruments. The Directors regularly review the exposure to each of these risks and determine whether or not it is appropriate to adopt appropriate risk-mitigation measures. | |||||||
| Foreign Currency Risk: | |||||||
| The Company is exposed to foreign exchange risk as a result of business dealings and recognised assets and liabilities that are valued in currencies other than the functional currency. In order to reduce exposure to foreign currency risk, the directors keep track of changes in exchange rates and cash holdings in different currencies. | |||||||
| Credit Risk: | |||||||
| This risk pertains to the possibility that our counterparties won't fulfil their commitments. The directors control credit risk by collaborating closely with reputable market players, such as banks and non-bank financial institutions, and making sure that our risk management framework incorporates the necessary third-party due diligence. | |||||||
| Liquidity Risk: | |||||||
| This is the risk that the company is unable to meet its obligations to partners or that partners are unable to meet their obligations to the company. In order to ensure there are enough capital resources to cover cash flow liabilities, the directors manage this risk by closely coordinating incoming and outgoing funds. | |||||||
| Financial instruments | |||||||
| The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities. The company does not enter into any hedging transactions. | |||||||
| Future developments | |||||||
| The directors anticipate continued competition in the business environment. Margin pressure experienced in financial year 2024 is expected to persist through financial year 2025; however, the company's robust cash reserves and variable-cost operating model provide flexibility to navigate the continuing competitive enviroment. | |||||||
| Financial key performance indicators | |||||||
| The Board monitors the progress of the company by reference to the following KPIs: | |||||||
| Year ended | Year ended | ||||||
| 2024 | 2023 | ||||||
| £ | £ | ||||||
| Turnover for the period | 7,253,744 | 26,643,598 | |||||
| Net Assets | 15,418,470 | 19,078,920 | |||||
| This report was approved by the board on 5 August 2025 and signed on its behalf. | |||||||
| Mr Borja Del Castillo Ramirez | |||||||
| Director | |||||||
| Inovattec Ltd | ||
| Independent auditor's report | ||
| to the members of Inovattec Ltd | ||
| Opinion | ||
| We have audited the financial statements of Inovattec Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the 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 the 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 31 December 2024 and of its profit for the year then ended; | |
| ● | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; | |
| ● | have been prepared in accordance with the requirements of the Companies Act 2006. | |
| Basis for opinion | ||
| 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 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 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. | ||
| Other information | ||
| 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 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. | |
| Matters on which we are required to report by exception | ||
| 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 |
| 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 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. |
| 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. |
| 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: | ||
| We obtained a general understanding of the Company's legal and regulatory frameworks through enquiry of management in respect of their understanding of the relevant laws and regulations. We obtained an understanding of the Company's policies and procedures in relation to compliance with relevant laws and regulations and how management identify breaches of the applicable requirements. We also drew on our existing understanding of the Company's industry and regulation. | ||
| We understand that the Company complies with requirements of the framework through: | ||
| ● | Updating operating procedures, manuals and internal controls as legal and regulatory requirements change: and | |
| ● | The directors' close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly and are considered at board meetings. | |
| In the context of the audit we considered those laws and regulations which determine the form and content of the financial statements, which are central to the Company's abilities to conduct its business and where failure to comply could result in material penalties. We have identified the following laws and regulations as being of significance in the context of the Company: | ||
| ● | The Companies Act 2006 and FRS 102 'The Financial Reporting Standard applicable in the UK ans Republic of Ireland' in respect of the preparation and presentation of the financial statements. | |
| To gain evidence about compliance with the significant laws and regulations above we reviewed board meeting minutes, reviewed the legal expense account and obtained written management representations regarding the adequacy of procedures in place. | ||
| The senior statutory auditor led a discussion with engagement team regarding the susceptibility of the Company's financial statements to material misstatement. including how fraud might occur. The key areas identified as part of the discussion were the risk of manipulation of the financial statements through manual journal entries and incorrect recognition of revenue. | ||
| We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition. We performed the following procedures over this risk area: | ||
| ● | We performed walkthroughs to understand the key processes and identify key controls; | |
| ● | We performed procedures to test on a sample basis the appropriateness of journal entries recorded in the general ledger by correlating sales postings with cash receipts throughout the year; | |
| ● | We tested all material manual journals to assess for any evidence of management bias by checking supporting documentation; and | |
| ● | We assessed the adequacy of the related disclosures in the Financial Statements. | |
| Based on our audit procedures we have concluded that revenue is appropriately recognised and that there was no evidence of management 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 judgment 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 on 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 auditor’s 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 auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. | |
| ● | 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. | ||
| Use of our 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. | ||
| For and on behalf of Platts Chartered Accountants (Statutory Auditor) | ||
| Unit 5 Swaker Yard | ||
| 2b Theobald Street | ||
| Borehamwood | ||
| Herts | ||
| WD6 4SE | ||
| Income Statement | ||||||||
| for the year ended |
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| Notes | 2024 | 2023 | ||||||
| £ | £ | |||||||
| Turnover | 3 | |||||||
| Cost of sales | ( |
( |
||||||
| Gross profit | ||||||||
| Administrative expenses | ( |
( |
||||||
| Operating profit | 4 | |||||||
| Interest receivable | - | |||||||
| Interest payable | ( |
- | ||||||
| Profit on ordinary activities before taxation | ||||||||
| Tax on profit on ordinary activities | 7 | ( |
( |
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| Profit for the financial year | ||||||||
| Statement of Comprehensive Income | |||||||
| for the year ended |
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| Notes | 2024 | 2023 | |||||
| £ | £ | ||||||
| Profit for the financial year | |||||||
| Other comprehensive income | - | - | |||||
| Total comprehensive income for the year | |||||||
| Statement of Financial Position | |||||||
| as at |
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| Notes | 2024 | 2023 | |||||
| £ | £ | ||||||
| Fixed assets | |||||||
| Intangible assets | 8 | ||||||
| Tangible assets | 9 | ||||||
| Current assets | |||||||
| Debtors | 10 | ||||||
| Cash at bank and in hand | |||||||
| Creditors: amounts falling due within one year | 11 | ( |
( |
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| Net current assets | |||||||
| Net assets | |||||||
| Capital and reserves | |||||||
| Called up share capital | 12 | ||||||
| Capital redemption reserve | 13 | 4,260 | 4,260 | ||||
| Profit and loss account | 14 | ||||||
| Total equity | |||||||
| Mr Borja Del Castillo Ramirez | |||||||
| Director | |||||||
| Approved by the board on |
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| Statement of Changes in Equity | ||||||||
| for the year ended |
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| Capital | ||||||||
| Share | Redemption | Profit | Total | |||||
| capital | Reserve | and loss | ||||||
| account | ||||||||
| £ | £ | £ | £ | |||||
| At 1 January 2023 | ||||||||
| Profit for the financial year | 19,068,660 | 19,068,660 | ||||||
| Dividends | ( |
( |
||||||
| At 31 December 2023 | 5,740 | 4,260 | 19,068,920 | 19,078,920 | ||||
| At 1 January 2024 | ||||||||
| Profit for the financial year | ||||||||
| Dividends | ( |
( |
||||||
| At 31 December 2024 | ||||||||
| Statement of Cash Flows | |||||
| for the year ended |
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| Notes | 2024 | 2023 | |||
| £ | £ | ||||
| Operating activities | |||||
| Profit for the financial year | 4,042,630 | 19,068,660 | |||
| Adjustments for: | |||||
| Interest receivable | (17,276) | - | |||
| Interest payable | 96,166 | - | |||
| Tax on profit on ordinary activities | 1,346,723 | 5,865,609 | |||
| Depreciation | 3,219 | 1,110 | |||
| Amortisation of website | 2,856 | 2,856 | |||
| Decrease in debtors | 4,749,247 | 1,802,022 | |||
| (Decrease)/increase in creditors | (162,983) | 39,943 | |||
| Interest received | - | ||||
| Interest paid | ( |
- | |||
| Corporation tax paid | ( |
( |
|||
| Cash generated by operating activities | |||||
| Investing activities | |||||
| Payments to acquire intangible fixed assets | - | ( |
|||
| Payments to acquire tangible fixed assets | ( |
- | |||
| Cash used in investing activities | ( |
( |
|||
| Financing activities | |||||
| Equity dividends paid | ( |
( |
|||
| Cash used in financing activities | ( |
( |
|||
| Net cash generated | |||||
| Cash generated by operating activities | |||||
| Cash used in investing activities | ( |
( |
|||
| Cash used in financing activities | ( |
( |
|||
| Net cash generated | |||||
| Cash and cash equivalents at 1 January | 14,107,507 | 11,935,525 | |||
| Cash and cash equivalents at 31 December | 15,030,858 | 14,107,507 | |||
| Cash and cash equivalents comprise: | |||||
| Cash at bank | |||||
| Inovattec Ltd | ||||||||
| Notes to the Accounts | ||||||||
| for the year ended 31 December 2024 | ||||||||
| 1 | Summary of significant accounting policies | |||||||
| General Information | ||||||||
| Inovattec Ltd ('the company') provides software development services of proprietary technology and consulting services for licensed financial service providers. The company is a private company Ltd by shares and is incorporated in the United Kingdom and registered in England. The address of its registered office is 71-75 Shelton Street, Covent Garden, London, England, WC2H 9QJ. |
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| Statement of Compliance | ||||||||
| The financial statements of Inovattec Ltd have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’ (‘FRS 102’) and the Companies Act 2006. | ||||||||
| Basis of preparation | ||||||||
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2. |
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| Going concern | ||||||||
The company's forecasts and projections, taking account a severe but plausible change in trading performance, show that the company should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
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| Exemptions for qualifying entities under FRS 102 | ||||||||
| The company has not taken advantage of any of the FRS 102 disclosure exemptions available to qualifying entities. | ||||||||
| Foreign currency | ||||||||
| i. Functional and presentation currency The company’s functional and presentation currency is the pound sterling. ii. 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. |
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| 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 the profit and loss account. Foreign exchange gains and losses that relate to borrowings are presented in the profit and loss account within 'finance (expense) / income'. All other foreign exchange gains and losses are presented in the profit and loss account within 'other operating income'. |
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| Revenue recognition | ||||||||
| Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for services rendered, net of returns, discounts and rebates allowed by the company. The company bases its estimate of returns on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to the company's sales channel has been met, as described below. |
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| i. Rendering of services When the outcome of a transaction can be estimated reliably, turnover from consulting services is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business. The company's technology allows consumers to securely transact with international merchants through local payment methods. The company charges a commission of the total value of the transactions completed to the licensed financial service providers. ii. Interest income Interest income is recognised using the effective interest method. |
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| Taxation | ||||||||
| Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively. Current or deferred taxation assets and liabilities are not discounted. i. Current tax Current tax is the amount of corporation tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. |
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Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
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| Intangible fixed assets | ||||||||
Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Section 18 of FRS 102 considers intangible assets other than goodwill. |
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| Tangible fixed assets | ||||||||
| Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs. i. Fixtures, fittings, tools and equipment Fixtures, fittings, tools and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. ii. Depreciation and residual values Depreciation on other assets is calculated, using the straight-line method, to allocate the cost to their residual values over their estimated useful lives, as follows: |
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| Fixtures, fittings, tools and equipment | over 4 years | |||||||
| The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. iii. Derecognition Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss and included in ‘Other operating (losses)/gains’. |
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| Cash and cash equivalents | ||||||||
| Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. | ||||||||
| Provisions and contingencies | ||||||||
| i. Provisions Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. |
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| Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations might be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost. ii. Contingencies Contingent liabilities are not recognised, except those acquired in a business combination. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable. |
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| Financial instruments | ||||||||
| i. Financial assets Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, 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 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. 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) despite having retained some significant risks and rewards of ownership, 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. |
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| ii. Financial liabilities Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. |
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| Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the 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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| Share capital | ||||||||
| Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. | ||||||||
| Distribution to equity holders | ||||||||
| Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity. | ||||||||
| Related party transactions | ||||||||
| 2 | Critical accounting estimates and judgements | |||||||
| Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. | ||||||||
| The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that will have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. | ||||||||
| (i) Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
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| 3 | Analysis of turnover | 2024 | 2023 | |||||
| £ | £ | |||||||
| Services rendered | ||||||||
| By geographical market: | ||||||||
| Australia | ||||||||
| 4 | Operating profit | 2024 | 2023 | |||||
| £ | £ | |||||||
| This is stated after charging: | ||||||||
| Depreciation of owned fixed assets | ||||||||
| Amortisation of goodwill | ||||||||
| Auditors' remuneration for audit services | ||||||||
| Auditors' remuneration for other services | ||||||||
| 5 | Directors' emoluments | 2024 | 2023 | |||||
| £ | £ | |||||||
| Emoluments | ||||||||
| Highest paid director: | ||||||||
| Emoluments | ||||||||
| 6 | Staff costs | 2024 | 2023 | |||||
| £ | £ | |||||||
| Wages and salaries | ||||||||
| Average number of employees during the year | Number | Number | ||||||
| Development | ||||||||
| Sales and Administration | ||||||||
| 7 | Taxation | 2024 | 2023 | |||||
| £ | £ | |||||||
| Analysis of charge in period | ||||||||
| Current tax: | ||||||||
| UK corporation tax on profits of the period | ||||||||
| Tax on profit on ordinary activities | ||||||||
| Factors affecting tax charge for period | ||||||||
| The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
| 2024 | 2023 | |||||||
| £ | £ | |||||||
| Profit on ordinary activities before tax | ||||||||
| £ | £ | |||||||
| Profit on ordinary activities multiplied by the standard rate of corporation tax | ||||||||
| Effects of: | ||||||||
| Capital allowances for period in excess of depreciation | ( |
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| Current tax charge for period | ||||||||
| Tax rate changes | ||||||||
In the Autumn Statement in November 2022, the government confirmed the increase in corporation tax rate to 25% from April 2023. |
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| 8 | Intangible fixed assets | £ | ||||||
| Website: | ||||||||
| Cost | ||||||||
| At 1 January 2024 | ||||||||
| At 31 December 2024 | ||||||||
| Amortisation | ||||||||
| At 1 January 2024 | ||||||||
| Provided during the year | ||||||||
| At 31 December 2024 | ||||||||
| Carrying amount | ||||||||
| At 31 December 2024 | ||||||||
| At 31 December 2023 | ||||||||
| 9 | Tangible fixed assets | |||||||
| Fixtures, fittings, tools and equipment | Total | |||||||
| At cost | ||||||||
| £ | £ | |||||||
| Cost or valuation | ||||||||
| At 1 January 2024 | ||||||||
| Additions | ||||||||
| At 31 December 2024 | ||||||||
| Depreciation | ||||||||
| At 1 January 2024 | ||||||||
| Charge for the year | ||||||||
| At 31 December 2024 | ||||||||
| Carrying amount | ||||||||
| At 31 December 2024 | ||||||||
| At 31 December 2023 | ||||||||
| 10 | Debtors | 2024 | 2023 | |||||
| £ | £ | |||||||
| Trade debtors | - | |||||||
| Other debtors | ||||||||
| 11 | Creditors: amounts falling due within one year | 2024 | 2023 | |||||
| £ | £ | |||||||
| Other creditors | - | |||||||
| Accruals and deferred income | ||||||||
| 12 | Share capital | Nominal | 2024 | 2024 | 2023 | |||
| value | Number | £ | £ | |||||
| Allotted, called up and fully paid: | ||||||||
| £ |
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| 13 | Capital redemption reserve | 2024 | 2023 | |||||
| £ | £ | |||||||
| At 1 January | 4,260 | 4,260 | ||||||
| At 31 December | 4,260 | 4,260 | ||||||
| 14 | Profit and loss account | 2024 | 2023 | |||||
| £ | £ | |||||||
| At 1 January | ||||||||
| Profit for the financial year | ||||||||
| Dividends | ( |
( |
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| At 31 December | ||||||||
| 15 | Dividends | 2024 | 2023 | |||||
| £ | £ | |||||||
| Dividends on ordinary shares (note 14) | ||||||||
| Dividends proposed after the reporting date | - | |||||||
| 16 | Related party transactions | |||||||
Also during the year, the company paid total dividends to Elephas Ltd in the sum of £3,247,640, being a company in which Mr P Schirmer is a shareholder. |
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| 17 | Controlling party | |||||||
| 18 | Legal form of entity and country of incorporation | |||||||
| Inovattec Ltd is a private company limited by shares and incorporated in England. | ||||||||