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Registered number: 11529161
PAY SET LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PAY SET LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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PAY SET LIMITED
CONTENTS
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Independent auditors' report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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PAY SET LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their Strategic Report for Pay Set Limited (“Payset” or “the Company”) for the year ended 31 December 2024, prepared in accordance with section 414C of the Companies Act 2006. The report provides members with a fair, balanced and comprehensive review of the Company’s business, its performance during the year, the principal risks and uncertainties it faces, and the manner in which the Directors have had regard to the matters set out in section 172(1) of the Companies Act 2006.
The Company is incorporated in England and Wales and is authorised by the Financial Conduct Authority (“FCA”) as an Authorised Electronic Money Institution (“AEMI”) under the Electronic Money Regulations 2011 (Firm Reference Number 900920). All client funds received in exchange for electronic money are safeguarded in accordance with those Regulations and the FCA’s published guidance.
Payset operates a multi-currency electronic money payment account platform with ancillary currency exchange services. Clients can receive, hold and send funds in multiple currencies via a single IBAN-enabled account, make free instant peer-to-peer transfers between Payset accounts, exchange funds across a wide range of currency pairs, and monitor activity through a single online dashboard.
The Company accesses the principal payment networks (SWIFT, SEPA, Faster Payments, CHAPS and FedWire/ACH) through partner banks. Payset does not lend client funds, pay interest on client balances, extend credit, or accept cash; client balances are used exclusively for payment transactions.
Business model and revenue streams
The Company generates revenue from a small number of well-defined streams arising from its core payments and FX activities:
(i) commissions on cross-border and local funds transfers (free between Payset clients, supporting network growth), priced by client risk profile and account type;
(ii) fixed commissions on foreign exchange transactions across supported currency pairs;
(iii) monthly account maintenance fees;
(iv) add-on service fees for urgent payments and, for corporate clients, dedicated account management; and
(v) interest earned on safeguarding accounts to the extent permissible under the Electronic Money Regulations 2011, without diminishing client rights.
Target market and client base
Approximately 90–95% of clients are corporates and 5–10% are individuals. Corporate clients are predominantly UK-incorporated SMEs operating across permitted industries including online marketing, technology, business consulting, construction, cleaning services, transportation, e-commerce and education. Industries are risk-rated against the Company’s Industry Risk List, with higher-risk sectors restricted in line with internal policy. Individual clients are typically the UBOs, principals or employees of corporate clients, or self-employed users seeking multi-currency accounts and competitive FX.
Performance during the year
Revenue for the year was €5,728,924 (2023: €6,333,395), a decrease of approximately 9.5% on the prior year.
The Directors consider the financial position of the Company at the year-end to be consistent with the strategic plan. The Company continues to maintain regulatory capital comfortably in excess of its requirements under the Electronic Money Regulations 2011, and relevant client funds remain safeguarded in accordance with the Company’s safeguarding policy and applicable regulatory requirements.
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PAY SET LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties
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The Board recognises that effective identification, assessment, monitoring and mitigation of risk is fundamental to the long-term success of the business. The Company’s risk framework comprises risk identification through ongoing business review, formal assessment using likelihood and impact criteria, documented mitigating controls, and ongoing monitoring with periodic Board-level review. The principal risks and the Directors’ approach to mitigation are set out below.
Macroeconomic and market environment risk
Inflation, elevated interest rates and broader economic uncertainty in the UK and key markets may affect client transaction volumes, FX flows and SME resilience; conversely, higher rates support income on safeguarded balances.
Mitigation: a diversified client base across industries and currency corridors, regular pricing reviews, and rolling cash-flow forecasts reviewed against a range of macroeconomic scenarios.
Regulatory and compliance risk
As an FCA-authorised AEMI, the Company is subject to the Electronic Money Regulations 2011, the Payment Services Regulations 2017 (where applicable), the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, the FCA’s Consumer Duty and evolving guidance; non-compliance could lead to enforcement, penalties, restrictions on permissions, reputational damage or, in extremis, withdrawal of authorisation.
Mitigation: a Compliance and MLRO function reporting to the Board, documented policies (safeguarding, AML/CFT, sanctions, conduct, complaints, vulnerable customers, Consumer Duty), periodic independent reviews, regulatory horizon-scanning, staff training, and regulatory own funds maintained in excess of the requirement.
Financial crime, fraud and sanctions risk
Services could be misused by third parties for money laundering, terrorist financing, fraud or sanctions evasion, giving rise to losses, enforcement and reputational harm.
Mitigation: a risk-based approach to onboarding (including industry risk-rating and prohibited industry restrictions), ongoing customer due diligence and transaction monitoring, sanctions and PEP screening, and Suspicious Activity Report filing where appropriate.
Operational, technology and cyber risk
Outages, cyber-attacks, data breaches or operational errors at the Company or its third-party providers could disrupt service and damage reputation.
Mitigation: documented business continuity and disaster recovery, an information security framework aligned with industry good practice, access controls and segregation of duties, system and security monitoring, periodic penetration testing, and operational resilience arrangements consistent with FCA expectations for important business services.
Partner bank, concentration and counterparty risk
Payments and safeguarding depend on relationships with a limited number of partner banks and infrastructure providers; loss, restriction or de-risking could affect service delivery.
Mitigation: active monitoring of partner performance and credit standing, expansion of relationships across the principal currencies, contingency arrangements to migrate flows where necessary, and a longer-term intention to seek direct membership of the principal payment systems when permitted for non-bank payment service
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PAY SET LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
providers.
Safeguarding and liquidity risk
The Company must safeguard funds received in exchange for electronic money; failure of controls or insolvency of a safeguarding institution could result in client losses and severe regulatory consequences.
Mitigation: client funds are segregated and held with authorised credit institutions with daily reconciliation; the Company’s working capital is held separately; safeguarding partner credit standing is monitored; and the Company’s liquidity position is reviewed regularly and stress-tested.
Competition and market risk
The UK payments market is highly competitive, with well-capitalised incumbents and challengers offering overlapping propositions.
Mitigation: a verticalisation go-to-market strategy that aligns proposition, pricing and service model to clearly identified ideal client profiles, establishing a defensible position rather than competing on a generalist basis.
Foreign exchange risk
Adverse rate movements between execution and settlement of client FX transactions could give rise to losses on working balances held in multiple currencies.
Mitigation: a matched-book model on client FX transactions wherever practicable, with proprietary exposure limited through internal exposure limits and ongoing position monitoring.
People and key person risk
The departure of key individuals or recruitment difficulties could affect operational capacity and strategic delivery.
Mitigation: investment in the senior team, succession arrangements for key roles, documentation of key processes, market-benchmarked remuneration, and a supportive working environment.
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PAY SET LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Directors' statement of compliance with duty to promote the success of the Company
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The Directors of the Company are aware of the requirement to act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole. In considering this duty, the Directors consider the following stakeholders:
Clients - The Company's client base ranges from large institutional clients to professional clients. The Directors prioritise compliance to ensure the funds of relevant clients are protected, whilst ensuring each client’s best interests are served in accordance with their risk appetite.
Suppliers - The Board seeks to ensure that there is a constructive working relationship with suppliers and service providers and that any contractual arrangements are in line with best practice and that their performance meets the expectation of the Board, the management, the employees and other stakeholders.
The Environment - The Company is committed to minimising the environmental impacts of the business operations particularly with regards to recycling and the re-use of paper.
Our Staff - Positive workplace culture attracts talent, drives engagement, impacts happiness and satisfaction, and affects performance. Management is committed to an open culture with weekly staff meetings, while ensuring that a high standard of business conduct is embedded throughout the company.
Regulators - The Directors prioritise compliance with regulations and best practice to ensure the funds of its customers are protected. As an authorised EMI in the UK, the Directors work closely in partnership with regulators and external parties to ensure a strong working relationship, adequate capital controls, and to ensure all regulatory matters are being addressed and processes strengthened.
This report was approved by the board and signed on its behalf.
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PAY SET LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of Pay Set Limited ("the Company") is the operation of a multi-currency electronic money payment account platform together with ancillary currency exchange services
The profit for the year, after taxation, amounted to €231,569 (2023 - €719,859).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who served during the year were:
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PAY SET LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Pay Set Limited expects further growth in 2026, as the company will continue to grow its client base by investing in staff and marketing activities throughout 2026.
Streamlined Energy and Carbon Reporting (SECR)
The Company has taken advantage of the exemption not to disclose its carbon emissions on the basis that the total emissions for the year were less than 40,000 kWh.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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PAY SET LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAY SET LIMITED
We have audited the financial statements of Pay Set Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 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; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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PAY SET LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAY SET LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial 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
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' responsibilities statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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PAY SET LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAY SET LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiring of management and those charged with governance around actual and potential litigation and
claims;
∙Reviewing the general ledger in detail for all transactions with related parties;
∙Performing walkthrough testing to ensure systems and controls are operating as recorded where
appropriate;
∙Performing audit work over the risk of management override of controls, including testing of journal entries
and other adjustments for appropriateness, evaluating the business rationale of significant transactions
outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙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
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PAY SET LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAY SET LIMITED (CONTINUED)
manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Wedge FCA (Senior statutory auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
8 May 2026
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PAY SET LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Profit for the financial year
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There was no other comprehensive income for 2024 (2023:€NIL).
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The notes on pages 14 to 24 form part of these financial statements.
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PAY SET LIMITED
REGISTERED NUMBER: 11529161
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 24 form part of these financial statements.
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PAY SET LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 14 to 24 form part of these financial statements.
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of Pay Set Limited ("the Company") is the operation of a multi-currency electronic money payment account platform together with ancillary currency exchange services.
The company is limited by shares and is incorporated in England and Wales.
The registered office is First Floor, 5 Fleet Place, London, United Kingdom, EC4M 7RD.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Capitalium Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.
The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for at least 12 months from the date of approval of these financial statements, and will be able to meet its liabilities as they fall due. In making this assessment, the directors have considered the entity’s financial position, cash flow forecasts, and its ongoing compliance with regulatory requirements, including the upcoming CASS 15 changes.
A gap analysis was performed to assess the control environment against regulatory expectations, which identified areas requiring enhancement. Management has implemented a remediation roadmap to address these gaps, with defined actions and timelines subject to management oversight.
Based on the forecast financial information and expected completion of the remediation plan, the directors are satisfied that the entity has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. Accordingly, the going concern basis of accounting has been adopted.
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is Euros.
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.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
(i) Payments commissions are recognised when cross border or local funds transfers are executed. Transfers between Payset clients are provided free of charge.
(ii) Foreign exchange commissions are recognised when the foreign exchange transaction is completed.
(iii) Account maintenance fees are recognised over the period to which the service relates.
(iv) Add on service fees, including urgent payments and dedicated account management for corporate clients, are recognised when the related services are provided.
(v) Interest income on safeguarding accounts is recognised on an accruals basis to the extent permissible under the Electronic Money Regulations 2011 and without diminishing client rights.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in profit or loss using the effective interest method.
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
(i) Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, 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.
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
If there is 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 the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) 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.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the 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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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
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.
There are no judgements, key accounting estimates and assumptions that have been made in the process of applying the above accounting policies.
Analysis of turnover by country of destination:
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The operating profit is stated after charging:
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Other operating lease rentals
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Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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During the year, the directors did not receive remuneration from the Company, as directors were paid for by the parent undertaking.
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Total tax charge for the year
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
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Factors that may affect future tax charges
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There are no factors which may impact future tax charges.
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Charge for the year on owned assets
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured, interest-free and are repayable on demand.
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Cash and cash equivalents
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The Company holds monies on behalf of clients in accordance with the Electronic Money Regulations of its regulator, the Financial Conduct Authority. Included within creditors due within one year is the corresponding liability of monies owed back to the clients of the Company.
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: Amounts falling due within one year
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Safeguarded funds liability
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest-free and repayable on demand.
The Company holds monies on behalf of clients in accordance with the Electronic Money Regulations of its regulator, the Financial Conduct Authority. Safeguarded funds held is the corresponding cash of monies owed back to clients of the Company and is included within cash at bank and in hand.
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Allotted, called up and fully paid
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478,800 (2023 - 478,800) Ordinary shares of £1.00 each
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Profit and loss account
Profit and loss account includes all current and prior period retained profits and losses.
The comparative information in these financial statements has been restated from the figures as previously reported due to a reclassification for safeguarded funds held.
This reclassification is presentational in nature and has no impact on net assets or profit/loss as previously reported.
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PAY SET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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 €790 (2023: £nil). Contributions totaling €310 (2023: £nil) were payable to the fund at the reporting date and are included in creditors.
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Commitments under operating leases
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The Company had no commitments under non-cancellable operating leases at the reporting date.
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Related party transactions
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The company has taken advantage of the exemption available in FRS 102 (s33.1a "Related Party Disclosure"), whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.
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The ultimate parent company is Cloud Innovations PTE. Ltd, a company incorporated in Singapore. The immediate parent company is Capitalium Limited, a company incorporated in England and Wales.
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