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Registered number:
FOR THE PERIOD ENDED 31 DECEMBER 2024
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MONETLEY LTD
COMPANY INFORMATION
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MONETLEY LTD
CONTENTS
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MONETLEY LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
The Directors present the Strategic Report and financial statements for 15 months ended 31 December 2024. The prior period was for the year ended 30 September 2023.
The Company is an electronic money institution authorised by the Financial Conduct Authority of the United Kingdom (the “FCA”) under the FCA reference number 900921.
The Company is established in the United Kingdom (the “UK”) under the registered company number 10978538, with registered office address at 77 Coleman Street, London EC2R 5BJ. Management were satisfied with the period’s performance with revenue of £4,533,638 (2023: £1,316,592) and net profit amounting to £44,136 (2023: net loss of £28,559). This is set out in the Statement of Comprehensive Income on page 12. The main business revenue continues to be generated from fees charged on the issue of electronic money, the provision of payment services and fees relating to agency licensing. The Company provides services both for mainly corporate entities but also a small percentage of private individuals. The majority of the business activity is focused on customers from the United Kingdom and across Europe. During the period, the Company amended its agency agreement with MoneyTea, a related entity within the same corporate group. The amendment introduced a volume-based tiered pricing structure in place of a fixed fee model, with the objective of enhancing the Company’s revenue potential. The parent company, MRCR Holdings Ltd, will continue to provide additional financial support and long-term security for the Company. The Company continues to monitor its performance using a number of KPI’s. These include revenue generation as well as a focus on e-money liabilities as one of its main performance indicators. Customer e-money liabilities reduced during the period to £3,136,518 (2023: £22,483,018). During the previous financial year, management decided to increase the capability of the key functions in the business to be able to perform well above the standards laid out by regulation, which in turn has placed increased administrative costs on the company and leading to forecasted losses in the short term. To preserve capital levels above the regulatory minimum, Management approached the parent Company for a capital injection of €3 million which was approved in April 2024. The capital levels are continually monitored, and Management are confident that there are sufficient reserves for the foreseeable future. In June 2023, the Company was informed that the Bank of Lithuania would be ceasing to provide banking services to Monetley as a result of a change in their risk appetite towards the underlying transactions of Monetley’s customers which included the sale proceeds of their crypto related transactions. The loss of the Bank of Lithuania as a key banking partner has meant that some of the features of the e-money accounts the Company provides to end users have been temporarily suspended while alternative suppliers are being engaged. Management is confident that a new banking partner will be secured, as the onboarding process with a new partner is in its final stages. However, the business is well-capitalized and maintains sufficient liquidity to continue operations well beyond this transition.
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MONETLEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
In order to achieve successful business realisation of our business strategy, the Company has defined and assessed the following risks, which may have a negative impact on the Company performance:
Global conflict The invasion of Ukraine is being monitored closely by management to assess the risks to the Company. Most of these risks are not unique to Monetley, such as the heightened risk of cyber-attack or disruption to internet connectivity impacting the Company’s operations or those of its suppliers. At present, Management believe controls are in place to sufficiently mitigate the potential risks. Prices and interest rate risk The main impact is reflected in negative impact to global markers due to: (i) military conflicts; (ii) political confrontations; (iii) economic embargoes and sanctions; The Company is not currently materially affected by global market price fluctuations due to the nature of services provided. It is also not involved in any significant investment activity in external market. Currency exchange risk The Company provides multi-currency services and the main impact is reflected by: (i) fluctuations in global market and stocks; (ii) import and export cycle breaks; and (iii) jurisdiction risk (restrictive nature changes in applicable laws and regulations). The Company currently reports its financials in GBP but provides services in two currencies EUR and GBP. The relative stability of the two currencies means the Company is not materially impacted by currency risk although any exposure is constantly monitored. Liquidity risk The main risk comes from the Company’s inability to meet the obligations as they fall which could threaten its stable financial position. Staff costs are the highest demand on company resources as it retains employees in a number of areas to meet its operational and regulatory requirements. Management regularly reviews the performance of the business to ensures its costs base is sustainable and is confident that the Company is able to achieve its business goals and exceed regulatory minimums. Although currently the business is not profitable management has received assurances from its parent company that it will continue to provide support as required for the foreseeable future. IT systems and software risk This is the risk that systems such as worldwide payment systems functionality experience interruption, disruption, or collapse). This would lead to: (i) probability that customers will incur losses as a result of damage to information systems; electronic systems or remote online banking systems; (ii) unauthorised access to the systems by third parties (using credentials of the customer or otherwise); and (iii) other external circumstances (cyber-attacks, worldwide nets interruptions). During the financial period no IT systems and software risk incidents were reported. The Company applies strong two factors authentication for its customers and all respective security measures (password, firewalls, fraud monitoring tools) in order to ensure optimal security with its internal systems and safeguard customers' funds held by it.
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MONETLEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Risk of regulatory changes, including tax risk
The is considered to impact the business by: (i) changes that restrict certain markets, jurisdictions or individuals; and (ii) entry into force of new laws and regulation restricting current business processes. The Company has a strong compliance team comprising of experienced compliance experts. The Company also has contractual relationships with advanced and experienced consultants such as Cosegic Ltd, well known in UK regulatory and compliance field. As a result, management believes the Company can remain fully compliant with national and international regulatory requirements. Operational risk This is the risk that loss could result from inadequate or failed internal processes, staff, controls, systems or from external events. The Company continuously monitors its business and IT processes and seeks ways to improve its internal control mechanisms to provide all internal processes effectiveness and risk-based management. Fraud and AML risk This is the risk the Monetley products could be used as a mechanism to facilitate fraudulent or money laundering activity. At the end of the reported period no significant failures were reported. The Company applies sufficient technical and human resources to ensure fraud controls are sufficient to mitigate the risk. Company’s internal system is configurated in a manner which accurately identifies and alerts suspicious transactions or those initiated by countries being under financial sanctions, FATF/OFAC countries or countries identified as ‘prohibited’ or ‘restricted’ by the Company's or ‘restricted’ by the Company’s internal AML/CTF rules and procedures. All the Company’s internal AML/CTF rules and procedures are regularly reviewed and updated and are fully compliant with the regulatory requirements and in accordance with the Company’s set risk appetite. An experienced MLRO is in place and controls all AML/CTF processes with the Company on a day-to-day manner. The Company is in contractual relationship with reliable partners which also helps to ensure the Company’s internal processes compliance remain at a high level. Counterparty or default risk Loss of counterparties in certain circumstances whereby they are unable or refuse to perform its obligations to the Company. At the end of the reported period no counterparty or default risk events were established. To avoid occurrence of such risk, company policy spreads to its counterparty network. Counterparties have precheck parameters which are incorporated in the Company's internal documents, all counterparties are under comprehensive KYC and financial stability checks to avoid risk of default. Conduct risk The risk that any products, services, behaviour, systems and/or controls may cause detriment to a customer and negatively impact the integrity of the market. This area covers customer communications, customer servicing, product & service design, FCA Compliance & Regulatory Affairs, and vulnerable customers. Monetley’s internal conduct rules focus on the fair treatment of customers as well as ensuring appropriate conduct in the Financial Conduct Authority’s (FCA’s) Conduct Rules including those contained in the new Consumer Duty regime. These are managed and monitored by the compliance team which reviews the processes reports to the Risk Committee. Compliance also manages the assessment of new products and their features to ensure they are appropriate, including undertaking annual product assessments. Other risks The Company may be affected by other risks that cannot be fully anticipated or controlled. For example,
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MONETLEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
occurrence of various force majeure circumstances (such as natural disasters, hostilities, strikes, etc.), national sanctions and court judgments. The business maintains a risk register that is reviewed monthly by the risk committee. Any material impact on the Company as a result of previously identified risk or the emergence of new risks are reported to the committee as soon as the occurrence has been established.
The financial indicators of the Company are as follows:
Net profit: £44,136 (2023: net loss of £28,559) Net assets: £3,095,816 (2023: £489,724) Customer liability balance: £3,136,518 (2023: £22,483,018) The Company's financial results are in line with management’s financial expectation for the 15 months ended 31 December 2024.
Management consider there are no other key performance indicators.
The Directors must act in accordance with the duties set out in the Companies Act 2006 (the ‘Act’). Under Section 172, the Directors have a duty to promote the success of the Company for the benefit of its members as a whole. When making decisions, the Directors ensure that they act in a way they consider, in good faith, would most likely promote the Company's success for the benefit of its members as a whole, and in doing so have regard to:
• the likely consequences of any decisions for the longer term; • the interest of the Company’s employees; • the need to foster the Company’s business relationships with suppliers, customers, regulators and others; • the impact of the Company’s operations on the community and environment; and • the desirability of the Company maintaining a reputation for high standards of business conduct. This duty to assess the interests of all stakeholders is central to the Directors' decision-making process. The Directors recognise that it is a key requirement to ensure that when making strategic decisions it has the relevant management information to fully consider the potential impact on the relevant stakeholders of any given decisions they approve. This is demonstrated by the development of the management information received by the Directors and any sub-groups, which has been updated during the course of the period to include relevant metrics to manage the Company. The Directors are also provided with regular reports from its sub-groups of key decisions taken, material risks and performance updates. Long term decisions Management reaffirmed the strategic focus on the individuals and corporate institutions that under-served in the financial services market. Resources and capabilities of the firm across its people, IT systems and governance have been strengthened despite the volatile macro-economic environment. A thorough gap analysis against the new customer duty regulations and other governance expectations was undertaken and any remaining gaps being addressed. Focus was also given to the Equality, Diversity & Inclusion policy, strengthening the Company's Operational Resilience, and ensuring regulatory requirements are met by the set deadlines. The interests of employees Management recognises the need to attract and retain talent and ensure employee well-being. The Company
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MONETLEY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
has a flexible working policy in place, using the lessons learned from the last three years.
All colleague meetings are held weekly that are also used to provide information on a number of key topics. There is also a monthly CEO update that provides information on business performance and key initiatives. Additionally, employees are encouraged to provide feedback and raise concerns to either their immediate line managers or higher if appropriate. Relationships with suppliers, customers and regulators The Company monitors feedback from customers that is provided directly to the Company. This information is used to help inform decision making and prioritise what is important to customers. The Company continues to develop long term business relationships with key suppliers through its supplier review and polices. This involves assessing the importance of each supplier and designing our engagement with them based on a range of risk criteria including financial and information security. The Company is committed to engaging openly and transparently with its regulators. During the course of the period, there was some engagement with the regulators to provide them with key information relating to the capital and issues that may have arisen relating to all aspects of the Company's activities, including risk and compliance. A dedicated resource has been established to manage regulatory affairs. The Company places a high value on compliance with all relevant regulations, promoting the highest level of integrity and ethical behaviour. All colleagues undertake appropriate mandatory training appropriate to their roles on an annual basis. The community and the environment Management recognises the importance of representing and contributing to the communities that are served. The Company is committed to having a positive impact on the environment by using systems that minimise impact on the environment. As a digital business without physical branches the Company already provides a low environmental impact solution to financial services. The Company engages in initiatives for low energy use in the small amount of office space that it does have. The Company will also ensure that its forward-looking decisions on office space will be made with environmental factors in mind. As part of supplier management and in support of anti-slavery the Company seeks assurances from key suppliers in this area ensuring that they have Modern Slavery policies and appropriate commitments are made in key supplier contracts. This process also ensures that key suppliers can also evidence that they have diversity and inclusion policies. Shareholders The Company will continue to engage openly and transparently with both its new and existing investors.
This report was approved by the board and signed on its behalf.
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MONETLEY LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the period ended 31 December 2024.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 Directors have provided a business review and information of the Company's future developments in the Strategic Report.
The profit for the period, after taxation, amounted to £44,136 (2023: loss £28,559).
There were no dividends declared or paid during the period and the prior year.
The Directors who served during the period were:
Megan Armstrong (appointed 27 September 2024)
Matthew Stride was appointed as a director on 18 June 2025.
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MONETLEY LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
The Directors' review of developments and future prospects and principal risks and uncertainties are included in the Strategic Report.
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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MONETLEY LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONETLEY LTD
We have audited the financial statements of Monetley Ltd (the 'Company') for the period ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Analysis of Net Debt, the Balance Sheet, 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 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.
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MONETLEY LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONETLEY LTD (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.
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.
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.
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MONETLEY LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONETLEY LTD (CONTINUED)
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:
In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered: • the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities; • the nature of the Company, including its management structure and control systems (including the opportunity for management to override such controls); • management’s incentives and opportunities for fraudulent manipulation of the financial statements including the Company’s remuneration and bonus policies; and • the industry and environment in which it operates. We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006. Based on this understanding we identified the following matters as being of significance to the entity: • laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation; distributable profits legislation; and Financial Conduct Authority ("FCA") rules; • the timing of the recognition of commercial income; • management bias in selecting accounting policies and determining estimates; and • recoverability of debtors. We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: • enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; • enquiries with the same concerning any actual or potential litigation or claims; • discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud; • assessment of matters reported to management and the result of the subsequent investigation; • obtaining an understanding of the relevant controls during the period; • obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the period; • review documentation relating to compliance with the regulations relating to health and safety including health and safety certificates; fire assessment reports; and the correspondence with the Financial Conduct
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MONETLEY LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONETLEY LTD (CONTINUED)
Authority ("FCA");
• challenging assumptions made by management in their specific accounting policies and estimates; • identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue; • assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding; • reviewing the financial statements for compliance with the relevant disclosure requirements; • performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud; and • reviewing the correspondence with HMRC. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
14th Floor
33 Cavendish Square
W1G 0PW
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MONETLEY LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
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MONETLEY LTD
REGISTERED NUMBER: 10978538
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 34 form part of these financial statements.
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MONETLEY LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
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MONETLEY LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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MONETLEY LTD
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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MONETLEY LTD
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
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MONETLEY LTD
ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2024
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Monetley Ltd is a company incorporated in England and Wales, registration number 10978538. The address of the registered office 77 Coleman Street, London EC2R 5BJ.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
After reviewing the Company's forecasts and projections and taking into account the economic conditions and possible changes in trading performance, 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.
Functional and presentation currency
Transactions and balances
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Platform service recharge represents commission earned on providing a service for the use of the Company's digital banking platform to a fellow group company. In the current period the commission is recognised over the volume of completed transactions on the digital banking platform used by the fellow group company over the contracted period. In the prior periods the commission is recognised as a recurring monthly fee over the contracted period. Revenue from other services provided to the customers is recognised when the service is fully provided.
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (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:
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.
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. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) 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 debtors due with the operating cycle fall into this category of financial instruments.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is 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 creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments 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 creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors 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.
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Management consider there is the following judgments in applying accounting policies and estimates of uncertainty in the preparation of these financial statements: Bad debt provision Management apply their judgments on assessing the bad debt provision to be made on debts which are considered difficult to recover from the Company's customers. Such assessment process would include regular reviews of the ageing profile of the debts and debt to income ratios, together with market economic conditions by Management.
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 25
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 26
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 27
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 28
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 30
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 31
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Page 32
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
During the period, the Company issued 3 million Ordinary shares at a par value of €1 each.
Profit and loss account
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MONETLEY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Reclassification of expenditure
Bank charges related to the client money bank accounts in the comparative period have been reclassified from Administrative Expenses to Cost of Sales for comparability purposes between this year and the prior year. The change results in restatements being made to the comparatives in these financial statements, with an increase of £68,618 in Cost of Sales and an decrease of the same amount in Administrative Expenses. This has no impact on net profit; profit and loss reserves; and net assets respectively in the comparative period.
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 £78,268 (year ended 30 September 2023 - £8,346).
Contributions totalling £NIL (2023 - £11,207) were payable to the fund at the balance sheet date and are included in creditors.
The immediate parent of the Company is MRCR Holdings Ltd, a company incorporated in Cyprus. The ultimate parent of the Company is MoneyBag, a company incorporated in the Cayman Islands.
MRCR Holdings Ltd is the largest and smallest group to consolidate the Company's results. Its consolidated financial statements can be obtained at Bowcliffe Hall, Bramham, Wetherby, West Yorkshire, United Kingdom, LS23 6LP.
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