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Registered number: 04296927 CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED FINANCIAL STATEMENTS INFORMATION FOR FILING WITH THE REGISTRAR FOR THE YEAR ENDED 31 DECEMBER 2024
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED REGISTERED NUMBER: 04296927 BALANCE SHEET AS AT 31 DECEMBER 2024
|  |  |  | As restated
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 4 |  | 386,262 |  | 493,792
|  |  | 386,262 |  | 493,792
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 5 | 559,366 |  | 635,224 |
Cash at bank and in hand | 6 | 1,180,028 |  | 2,656,895 |
|  | 1,739,394 |  | 3,292,119 |
Creditors: amounts falling due within one year | 7 | (974,197) |  | (1,434,818) |
Net current assets |  |  | 765,197 |  | 1,857,301
Total assets less current liabilities |  |  | 1,151,459 |  | 2,351,093
Creditors: amounts falling due after more than one year | 8 |  | (287,477) |  | (462,525)
Provisions for liabilities |  |  |  |  |
Deferred tax | 10 | (17,922) |  | (26,162) |
|  |  | (17,922) |  | (26,162)
Net assets |  |  | 846,060 |  | 1,862,406
Capital and reserves |  |  |  |  |
Called up share capital | 11 |  | 1,250 |  | 1,250
Capital contributions reserve | 12 |  | 864,072 |  | 813,092
Profit and loss account | 12 |  | (19,262) |  | 1,048,064
|  |  | 846,060 |  | 1,862,406
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities. The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime. The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 April 2025. Page 1
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED REGISTERED NUMBER: 04296927 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024
P Copperwheat
Director
The notes on pages 4 to 17 form part of these financial statements. Page 2
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Capital contribution reserve | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2023 | 1,250 | 762,112 | 987,838 | 1,751,200
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 60,226 | 60,226
Contributions by and distributions to owners |  |  |  |
Capital contribution | - | 50,980 | - | 50,980
At 1 January 2024 | 1,250 | 813,092 | 1,048,064 | 1,862,406
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 158,409 | 158,409
Dividends: Equity capital | - | - | (1,225,735) | (1,225,735)
Capital contribution | - | 50,980 | - | 50,980
At 31 December 2024 | 1,250 | 864,072 | (19,262) | 846,060
| The notes on pages 4 to 17 form part of these financial statements.
Page 3
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
The company is a private company limited by shares and is incorporated in England and Wales, registration number 04296927. The address of its registered office is 5th Floor Midpoint, Alencon Link, Basingstoke, United Kingdom, RG21 7PP. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. The Company has early adopted the FRS 102 'Periodic Review 2024 amendments' in the preparation of these financial statements from the transition date of 1 January 2024. Prior period adjustments resulted from the transition are explained in Note 13. The following principal accounting policies have been applied:
| 2.2 | Going concern
The financial statements have been prepared on a going concern basis on the assumption that continued financial support will be forthcoming from the immediate parent company JCIA Holdings, LLC.
| 2.3 | Foreign currency translation
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'. Page 4
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.4 | Revenue
Prior to adoption of the FRS102 'Periodic Review 2024 Amendment' at transition date of 1 January 2024 Revenue consists of commissions paid by clients either on debt recoveries or a fixed amount based on debt serviced. It is determined by the contractual agreement set out between the Company and our Clients. Revenue is recorded when the terms of the contract have been met to an appropriate satisfaction. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year. Effect of adoption of the FRS102 'Periodic Review 2024 Amendment' at transition date of 1 January 2024 Revenue consists of commissions paid by clients either on debt recoveries or a fixed amount based on debt serviced. Revenue represents the amount of consideration to which the Company is expected to be entitled in exchange for transferring the promised services to its customers. The Company recognises its revenue comprises of commissions on debt recovery services based on the following five step model: • Identify the contract(s) with the customer. • Identify the performance obligations in the contract. • Determine the transaction price. • Allocate the transaction price to the performance obligations. • Recognise revenue when or as a performance obligations is satisfied. If an entity transfers services to a customer before the customer pays consideration (or before payment is due), the entity shall recognise a contract asset, excluding any amounts presented as a trade receivable If an entity has received consideration (or consideration is due) from the customer before the entity transfers services to the customer, the entity shall recognise a contract liability when the payment is made or the payment is due The Company has chosen not to adopt the practical expedient transition treatment allowed by FRS102 'Periodic Review 2024 Amendment'. The sole performance obligation of the Company is the provision of a debt recovery service which is considered to be satisfied when debt monies have collected on behalf of its clients. There is no impact from the adoption of the FRS102 'Periodic Review 2024 Amendment' on how revenue has been recognised by the Company due to the simple nature of its trade contracts with its customers. Transfers of services to a customer before the customer pays consideration previously recognised as Accrued income has now been recognised as a Contract asset from the transition date. A reclassification of Contract asset from Prepayments and Accrued income has been made in the comparative figures - see Note 13. Page 5
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.5 | Operating leases: the Company as lessee
Prior to adoption of the FRS102 'Periodic Review 2024 Amendment' at transition date of 1 January 2024 The rental lease agreement on the Company's premises was recognised as a finance lease in the prior period. See accounting policy 2.5 'Leased assets: the Company as lessee' for details. Effect of adoption of the FRS102 'Periodic Review 2024 Amendment' at transition date of 1 January 2024 The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For the short-term leases or leases of low value assets, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. The lease liability is initially measured from the transition date at the present value of the lease payments that are not paid at the commencement date of 7 September 2022, discounted by using the rate implicit in the lease. For right of use assets, the weighted average lessee’s incremental borrowing rate applied to the lease liabilities is 4.6%. Lease payments included in the measurement of the lease liability comprise fixed lease payments, less any lease incentives. The lease liability is included in Creditors on the Balance sheet. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. As the right-of-use asset was capitalised as a leasehold property asset before the FRS102 'Periodic Review 2024 Amendment' transition date, management consider it suitable to adopt the brought forward net book value of the leasehold property assets as the initial measured value of the right-of- use asset at the transition date. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the remaining lease term and useful life of the underlying asset. The Company has chosen not to adopt the practical expedient transition treatment allowed by FRS102 'Periodic Review 2024 Amendment'. The adoption of the FRS102 'Periodic Review 2024 Amendment' on operating leases has not resulted in a prior year adjustment to the comparative figures. Page 6
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.6 | Leased assets: the Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability. Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. Prior to the FRS102 'Periodic Review 2024 Amendment' transition date of 1 January 2024, the rental lease agreement on the Company's premises was recognised as a finance lease in the prior period. See accounting policy 2.4 'Operating leases: the Company as lessee' for details.
| 2.7 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.8 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.9 | Pensions
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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds. Page 7
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.10 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
| 2.11 | Tangible fixed assets
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. The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. Page 8
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.11 | Tangible fixed assets (continued)
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:
|  |  |  | Leasehold property | - | Over the term of the lease
|  |  |  | Right of use assets | - | Over the term of the lease from 'FRS102 Periodic Review 2024 Amendment' transition date of 1 January 2024
|  |  |  | Fixtures and fittings | - | 8 years straight line
|  |  |  | Office equipment | - | 6 years straight line
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.
| 2.12 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.13 | Cash and cash equivalents
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.
| 2.14 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.15 | Provisions for liabilities
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. Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation. Increases in provisions are generally charged as an expense to profit or loss. Page 9
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.16 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments. Contract assets Contract assets are initially measured at cost, which include any costs that relate to satisfied or partially satisfied performance obligations are expensed. They are subsequently measured at the lower of cost or recoverable amount, with any impairment losses recognised in profit or loss. Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts Page 10
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.16 | Financial instruments (continued)
discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
| 2.17 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
3. | Employees
| The average monthly number of employees, including directors, during the year was 72 (2023 - 72).
Page 11
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
4. | Tangible fixed assets
|  | Leasehold property | Right of use assets | Fixtures and fittings | Office equipment | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 January 2024 | 429,872 | - | 157,130 | 492,326 | 1,079,328
| Impact of change in accounting policy | (429,872) | 363,378 | - | - | (66,494)
| At 1 January 2024 (adjusted balance) | - | 363,378 | 157,130 | 492,326 | 1,012,834
| Additions | - | - | 1,082 | 1,936 | 3,018
| At 31 December 2024 | - | 363,378 | 158,212 | 494,262 | 1,015,852
| Depreciation |  |  |  |  |
| At 1 January 2024 | 66,494 | - | 137,642 | 381,400 | 585,536
| Impact of change in accounting policy | (66,494) | - | - | - | (66,494)
| At 1 January 2024 (adjusted balance) | - | - | 137,642 | 381,400 | 519,042
| Charge for the year on owned assets | - | - | 10,618 | 22,063 | 32,681
| Charge for the year on right of use assets | - | 77,867 | - | - | 77,867
| At 31 December 2024 | - | 77,867 | 148,260 | 403,463 | 629,590
| Net book value |  |  |  |  |
| At 31 December 2024 | - | 285,511 | 9,952 | 90,799 | 386,262
| At 31 December 2023 | 363,378 | - | 19,488 | 110,926 | 493,792
Page 12
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
5. | Debtors
|  |  |  |  |  | As restated
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade debtors | 276,973 | 328,879
| Amounts owed by group undertakings | 13,657 | 188,461
| Other debtors | 41,832 | 12,545
| Contract assets | 158,815 | 42,812
| Prepayments and accrued income | 68,089 | 62,527
|  | 559,366 | 635,224
6. | Cash and cash equivalents
|  |  |  |  |  | As restated
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Cash at bank and in hand | 1,180,028 | 2,656,895
|  | 1,180,028 | 2,656,895
| Included in cash at bank is client funds in the total of £574,806 (2023 - £2,500,012), with the related liability included in Other creditors - see Note 7.
7. | Creditors: Amounts falling due within one year
|  |  |  |  |  | As restated
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade creditors | 76,233 | 206,346
| Corporation tax | 62,277 | 6,270
| Other taxation and social security | 101,623 | 85,106
| Lease liability | 89,213 | -
| Other creditors | 584,144 | 1,054,786
| Accruals and deferred income | 60,707 | 82,310
|  | 974,197 | 1,434,818
Page 13
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Lease liability | 287,477 | 462,525
|  | 287,477 | 462,525
9. | Lease liability
| Minimum lease payments on leased assets fall due as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Within one year | 82,327 | 74,360
| Between 1-5 years | 339,929 | 446,158
|  | 422,256 | 520,518
| The above lease liability in relation to the office lease was initially recognised at the transition date of 1 January 2024 as a result of the adoption of the FRS102 'Periodic Review 2024 Amendment'. Lease payments in total of £21,246 has been excluded from the calculation of the lease liability as they were made before the transition date. A discounting rate of 4.6% has been applied in the calculation of the lease liability included in creditors as shown in Note 7 and Note 8. The above minimum lease payments represent the full lease payment excluding any discounting. The cash outflow for leases in the year was £74,360 (2023 - £21,246).
10. | Deferred taxation
|  | 2024
|  | £
| At beginning of year | (26,162)
| Charged to profit or loss | 8,240
| At end of year | (17,922)
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CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 10.Deferred taxation (continued)
| The provision for deferred taxation is made up as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Accelerated capital allowances | (20,541) | (28,263)
| Pension surplus | 2,619 | 2,101
|  | (17,922) | (26,162)
11. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 100,000 (2023 - 100,000) 'A' Ordinary shares of £0.01 each | 1,000 | 1,000
|  | 20,000 (2023 - 20,000) 'B' Ordinary shares of £0.01 each | 200 | 200
|  | 5,000 (2023 - 5,000) 'C' Ordinary shares of £0.01 each | 50 | 50
|  |  | 1,250 | 1,250
| Ordinary 'A' shares entitle the shareholder to full voting rights, dividends and participation in a distribution. Ordinary 'B' and 'C' shares entitle the shareholder to dividends and participation in a distribution but do not give the right to vote or to receive notice of a general meeting of the company or to attend such meetings
12. | Reserves
Capital contribution reserve This represents all current and prior period capital contributions made by the Company's immediate parent company JCIA Holdings, LLC. Profit and loss account This represents all current and prior period retained profits and losses. Page 15
CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | Prior year adjustment
Early adopted the FRS 102 'Periodic Review 2024 amendments' The Company has early adopted the FRS 102 'Periodic Review 2024 amendments' in the preparation of these financial statements from the transition date of 1 January 2024. Transfers of services to a customer before the customer pays consideration previously recognised as Accrued income has now been recognised as Contract assets from the transition date. A prior year adjustment of £42,812 has been made to the comparatives to reclassify the amounts previously shown in Accrued income to be presented as Contract assets. The prior period adjustment has no impact on the comparative net profit, current assets and retained earnings. Reclassification of client money bank account In the prior year client money bank account balance of £2,500,012 was included in Other assets. A prior year adjustment has been made to reclassify this to Cash at bank as management considers such disclosure is deemed appropriate. Reclassification of inter-company cost recharges received In the prior year inter-company cost recharges received of £715,232 were included in turnover. A prior year adjustment has been made to reclassify £354,340 of the income to cost of sales and the remaining £360,892 to administrative expenses as management considers it is appropriate for the cost recharges received to be set against the relevant costs incurred by the Company. The prior year adjustment has resulted a decrease of £360,892 in the comparative gross profit while there is no impact on the net profit.
14. | Pension commitments
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 £39,593 (2023 - £35,530). Contributions totalling £10,477 (2023 - £8,403) were payable to the fund at the balance sheet date and are included in creditors.
15. | Related party transactions
| During the year, the Company received commission income of £401,315 (2023 - £341,039) from its immediate parent company. The Company also received cost recharges income of £855,052 (2023 - £739,995) from the group companies. At the year end date, the Company had inter-company balances in the sum of £13,657 owed by the group companies (2023 - £188,461).
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CREDIT LINK ACCOUNT RECOVERY SOLUTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. | Controlling party
The Company's immediate parent company is JCIA Holdings, LLC, by virtue of their 100% shareholding. The ultimate parent company is Jefferson Capital Holdings LLC. The Company's results for the year are included in the consolidated financial statements of CL Holding LLC, which is the smallest group of undertakings to prepare consolidated financial statements. The registered office for all parent companies is 16 McLeland Road, St Cloud, MN 56303, United States of America.
17. | Auditors' information
The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified. The audit report was signed on 4 April 2025 by Shilen Manek ACA FCCA (Senior statutory auditor) on behalf of Sumer Auditco Limited.
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