FOR THE YEAR ENDED 28 FEBRUARY 2022
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
COMPANY INFORMATION
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
CONTENTS
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022
The directors present their report and the financial statements for the year ended 28 February 2022.
The directors are responsible for preparing 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 judgments and accounting estimates that are reasonable and prudent;
∙
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 who served during the year were:
At Moneyhub, the health, safety and wellbeing of every employee, contractor and customer is our priority. Throughout the coronavirus (COVID-19) pandemic, we have taken practical steps, and implemented robust measures, to ensure the welfare of everyone. We have also supported our wider community by offering free use of the Moneyhub App to assist people in managing their personal finances at this difficult time.
In advance of the statutory lockdown implemented by the Government we implemented a full working from home initiative. All of the Moneyhub team are able to work effectively, remotely, and this has been part of our culture for some time so the impact of the Covid-19 restrictions on the day to day operations of the business was minimal. We have continued to recruit and on-board new team members during this period, delivering IT equipment direct to their home address. We have set up regular online social activities to keep everyone connected. We continue to monitor Government and Public Health advice to ensure that we maintain a safe and compliant working environment.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
The auditors, Bishop Fleming Bath Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONEYHUB FINANCIAL TECHNOLOGY LIMITED
We have audited the financial statements of Moneyhub Financial Technology Limited (the 'Company') for the year ended 28 February 2022, 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).
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.
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.
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.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONEYHUB FINANCIAL TECHNOLOGY LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Directors' report has 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 Directors' report.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONEYHUB FINANCIAL TECHNOLOGY LIMITED (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 identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
∙
the nature of the industry and sector, control environment and business performance;
∙
the results of our enquiries of management and the directors about their own identification and assessment of the risk of irregularities;
∙
any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to:
°
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°
detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected, or alleged fraud; and
°
the internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
∙
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, and incorrect recognition of revenue was identified as the greatest potential area for fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102 and UK tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included health and safety regulations, employment legislation, data protection laws and regulations stipulated by the Financial Conduct Authority (FCA).
Our procedures to respond to risks identified included the following:
∙
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙
enquiring of management concerning actual and potential litigation claims;
∙
reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
∙
reviewing Board meeting minutes;
∙
reviewing correspondence with the FCA for indications of non-compliance; and
∙in addressing the risk of fraud through management override of controls, testing the appropriateness of
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONEYHUB FINANCIAL TECHNOLOGY LIMITED (CONTINUED)
journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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
10 Temple Back
BS1 6FL
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2022
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
REGISTERED NUMBER:
06909772
STATEMENT OF FINANCIAL POSITION
AS AT
28 FEBRUARY 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 10 to 23 form part of these financial statements.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
28 FEBRUARY 2022
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
28 FEBRUARY 2021
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
The principal activity of Moneyhub Financial Technology Ltd is that of connecting consumers with financial products and services through the innovative use of technology. During the year, the company undertook further development of its Moneyhub financial technology to better serve the needs of both its individual and financial advisory customers.
The company is a private company limited by shares and is incorporated and domiciled in England. The registered office address is C/O Roxburgh Milkins Limited Merchants House North, Wapping Road, Bristol, United Kingdom, BS1 4RW.
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:
The
Company
is a parent
company
that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of
any part of the United Kingdom
and is therefore exempt from the requirement to prepare consolidated financial statements under
section 400 of the Companies Act 2006
.
The Directors have considered the going concern status of the business in light of the results for the year, and are satisfied that the accounts are correctly completed on a going concern basis.
In arriving at this conclusion the Director's are satisfied that the business is functioning effectively whilst everyone is working from home. We have onboarded new employees, contractors and clients during the pandemic and have seen an upturn in the level of new enquiries. Existing customers also have an appetite to roll out current projects more quickly than previously planned. We are in the enviable position of offering a money management solution that is critical in the current economic environment. We therefore have no concerns around the viability of the business. During the period the parent company raised an additional £7.1m of equity investment. Since the year end further funding via growth capital debt finance of £5m has been raised to continue the development of the Group's products and offerings. After making enquiries, the directors have reasonable expectation that the company have access to adequate resources to continue in operational existence for the forseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
2.
ACCOUNTING POLICIES (continued)
Functional and presentation currency
Transactions and balances
Revenue from the sale of software licenses to consumers is recognised on a straight line basis over the period of the license. Fees arising from the provision of financial technology and associated services to businesses are recognised by reference to the delivery of separately identifiable components using the percentage of completion method. All revenue is measured at the fair value of the consideration received or receivable and is net of Value Added Tax.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
2.
ACCOUNTING POLICIES (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
2.
ACCOUNTING POLICIES (continued)
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
Research and development Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all the following criteria are met: • there is a clearly defined project • expenditure is separately identifiable • the project is commercially viable • the project is technically feasible • project income is expected to outweigh cost • resources are available to complete the project.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
2.
ACCOUNTING POLICIES (continued)
Other reserves included within equity comprise of capital contributions from the parent company in relation to share based payment arrangements where equity instruments in the parent company are issued to employees of the subsidiary company. Capital contributions that arise from the waiver of intercompany loans from the parent company are recognised through the profit and loss account reserve.
We do not believe there to be any critical accounting judgements in the financial statements. Key sources of estimation uncertainty The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of asets and liabilities within the next financial year are addressed below. Revenue recognition The revenue recognised relates to the rendering of services regarding the development and implementation of software and apps. The recognition of this revenue is subject to a degree of estimation as the milestones and completion of projects is ultimately estimated until the customer agrees to sign off.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
There were no factors that are expected to materially affect future tax charges.
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £234,482 (2021: £223,635).
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MONEYHUB FINANCIAL TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
The company's immediate and ultimate parent company is Hub Investment Holdings Limited, a company incorporated in the United Kingdom. The registered office of Hub Investment Holdings Limited is C/O Roxburgh Milkins Limited Merchants House North, Wapping Road, Bristol, United Kingdom, BS1 4RW.
The only group in which the results of the company are consolidated is that headed by Hub Investment Holdings Limited. Copies of these financial statements are available from its registered office.
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