REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
FOR |
MONEYPLUS GROUP LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
FOR |
MONEYPLUS GROUP LIMITED |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 28th February 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
MONEYPLUS GROUP LIMITED |
COMPANY INFORMATION |
for the Year Ended 28th February 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
100 Barbirolli Square |
Manchester |
M2 3BD |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
STRATEGIC REPORT |
for the Year Ended 28th February 2023 |
The directors present their strategic report for the year ended 28th February 2023. |
BUSINESS REVIEW, STRATEGY & OUTLOOK |
Turnover for the year decreased to £7.3m as compared to £7.6m for the prior year. Despite the year-on-year drop in turnover, turnover of the core debt advice revenue stream increased by 4% on prior year. The company's loss increased to £3.6m driven by various factors including the cessation of trade with a group company - MoneyPlus Legal and an increase in investment in new customers by £1.7m on the prior year. The up-front investment in new customers has a negative impact on short-term profitability but creates a robust asset of recurring revenues that will drive increased EBITDA over future years. The loss for the year also includes non-cash costs of depreciation and amortisation totalling £2.52m relating to various historic acquisitions of debt advice books and businesses that continue to deliver monthly recurring revenues. |
Following a review, the Directors have determined that shared costs and introducer fees should be apportioned to MoneyPlus Insolvency Limited. The impact is to restate the comparative, and to reduce the loss by £1.04m. |
Management believe that a key indicator of future trading performance is the size of the consumer base after taking into account the attrition rate (see more below under principal risks). Given the agility of the firm, it is well placed to reflect its staff and operating costs in comparison to the size of the consumer base. |
During the year the company cemented its position as one of the largest providers of debt advice in the UK, growing its customer base by 10%, whilst at the same time seeing attrition rates and complaints remain at historic low levels. During the year the company's investment yielded the equivalent of one third of its opening book size in new debt advice customer plans with 8% of the opening book successfully completing their plan and becoming debt free. |
Advising an ever-growing number of new customers, results in the value of our back book increasing. Across the year under review our asset value increased by £6.9m which underpins future collections net of costs to manage the customer book. As the company has been built on a robust platform of customers who require professional debt advice the growth this year demonstrates that we are well on the way to achieving our aim of being the number one trusted provider of debt advice in the UK. In order to achieve our aspirations, we are assisted by our investors and colleagues, as well as OakNorth Bank, who during the year under review provided a £6.5m loan to the group, which will enable the firm to invest in serving an ever-increasing number of new customers. |
The Directors consider the key performance indicators of the group to be consumer book size, attrition and operating profitability. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The board of directors has identified that the key risks facing the Company are 1) Regulatory, 2) Banking facilities, 3) Attrition rates of consumers and 4) Marketplace. |
REGULATORY |
During the Pandemic the company engaged regularly with its regulator The Financial Conduct Authority (FCA). These positive discussions then continued into dialogue surrounding the costs of living crisis faced by the average consumer. In this regard the Group has been delighted to share its market intelligence and experience which has been welcomed by the regulator. The Group also continues to submit to the FCA and other regulators ideas and proposals for enhanced regulatory restrictions which will lead to better outcomes for consumers. |
BANKING FACILITIES |
The Group continues to rely on support from Intriva Capital and OakNorth Bank and post the period under review the Group saw additional support from OakNorth Bank, by way of a £10m Revolving Credit Facility. |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
STRATEGIC REPORT |
for the Year Ended 28th February 2023 |
ATTRITION RATES OF CONSUMERS |
As part of the ongoing performance of the company a key consideration is the monthly attrition rate of the consumer base. The company has and continues to demonstrate low levels of consumer attrition which management believe is reflective of positive consumer outcomes. These rates are continuously reviewed by not only the company but also external auditors commissioned on behalf of its finance providers. |
MARKETPLACE |
The UK having seen and witnessed the COVID - 19 Pandemic, consumers are now having to deal with the economic aftereffects of the same, coupled with the war in Ukraine, leading to the 'Cost of Living Crisis' and 40 year highs in inflation. These complicated issues translate into very simple but severe implications for the average consumer and place a huge number of consumers under severe financial pressure. There is an expectation that the macroeconomic environment will suffer a slow recovery from these impacts and MoneyPlus expects to position itself as the number one provider of debt advice to the impacted consumers across the economic cycle. |
ON BEHALF OF THE BOARD: |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
REPORT OF THE DIRECTORS |
for the Year Ended 28th February 2023 |
The directors present their report with the financial statements of the company for the year ended 28th February 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the Company in the year under review was that of the provision of financial and legal advice, predominantly to over indebted consumers. |
DIVIDENDS |
No dividends will be distributed for the year ended 28 February 2023 (2022: £Nil). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st March 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
EMPLOYMENT AND EMPLOYMENT POLICIES |
The company has implemented detailed human resources policies and acts as an equal opportunities employer. It currently holds Investors in People gold status and is accredited by the National Skills Academy. |
Communication with all employees continues through formal training and presentations, the intranet and regular staff meetings and events. |
DIRECTORS’ INDEMNITIES |
The Company has made qualifying third party indemnity provisions for the benefit of its Directors, which were made during the year and remain in force at the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors' Report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this Directors' Report, specifically in respect of the review of the business, future developments and key risks in the business. |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
REPORT OF THE DIRECTORS |
for the Year Ended 28th February 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently; |
- | make judgements 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 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MONEYPLUS GROUP LIMITED |
Opinion |
We have audited the financial statements of Moneyplus Group Limited (the 'company') for the year ended 28th February 2023 which comprise the Profit and Loss Account, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, 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 28th February 2023 and of its loss 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MONEYPLUS GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MONEYPLUS GROUP LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
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 including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets; |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have 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 noncompliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate 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 any 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 identified the greatest potential for fraud in the following areas: timing of recognition of income and going concern. 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 UK Companies Act, environmental laws, employment law, health and safety, pensions legislation and 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. |
Audit response to risks identified |
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 and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MONEYPLUS GROUP LIMITED |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 |
100 Barbirolli Square |
Manchester |
M2 3BD |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
PROFIT AND LOSS ACCOUNT |
for the Year Ended 28th February 2023 |
2023 | 2022 |
Notes | £'000 | £'000 |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
(1,786 | ) | 32 |
Other operating income | 5 |
OPERATING (LOSS)/PROFIT | 7 | ( |
) |
Impairment charge | 8 | ( |
) |
(3,033 | ) | 49 |
Interest payable and similar expenses | 9 | ( |
) | ( |
) |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 10 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | ( |
) | ( |
) |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
STATEMENT OF FINANCIAL POSITION |
28th February 2023 |
2023 | 2022 |
Notes | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 | ( |
) | ( |
) |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 28th February 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£'000 | £'000 | £'000 |
Balance at 1st March 2021 |
Deficit for the year | - | (138 | ) | (138 | ) |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 28th February 2022 |
Deficit for the year | - | (3,553 | ) | (3,553 | ) |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 28th February 2023 |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 28th February 2023 |
1. | STATUTORY INFORMATION |
Moneyplus Group Limited is a private company limited by share capital, incorporated in England & Wales, registration number 07310059. The address of the principal place of business and the registered office is Riverside, New Bailey Street, Manchester, M3 5FS. |
2. | ACCOUNTING POLICIES |
Basis of preparation |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
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. For the purpose of aligning with the company/group’s internal financial reporting period end, the profit and loss account is inclusive of turnover and expenditure which has been accrued in relation to the period up to 10 March 2023. Similarly, turnover and expenditure for the period prior to 11 March 2022 has been excluded. Due to a high proportion of customer payments being received around calendar month end, this treatment ensures any fluctuations in fee income which may arise due to how business processing days may fall around calendar month end are eliminated. This treatment allows management to evaluate performance in a more meaningful way and is consistent with reporting in the prior year. |
The financial statements are prepared in sterling, which is the functional currency of the group. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by 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 33 Related Party Disclosures paragraph 33.7. |
Group exemption |
The financial statements contain information about Moneyplus Group Limited as an individual company and do not contain financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statement as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its ultimate parent company, Moneyplus Holdings Limited, whose registered office is Riverside, New Bailey Street, Manchester, M3 5FS. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Going concern |
Assurances have been received from other group entities that the balances owed by the company will not be demanded until adequate alternative funds are in place. Accordingly the directors consider it reasonable to prepare these financial statements on a going concern basis. |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents amounts in respect of the provision of financial solutions to individuals experiencing personal debt problems and is recognised as set out below. Turnover is exclusive of Value Added Tax where applicable. |
Debt management - Turnover is recognised on a cash received basis reflecting the proportion of work performed. Initial fees are recognised when a customer makes their first contribution to the plan. Subsequent fees are recognised on receipt of funds into the plan, which reflects when the service is provided. |
Intangible assets |
Intangible assets are represented by: |
- | Acquired customer contracts which represent the rights to ongoing management fees income from clients within back books acquired by the Company and is amortised over a period that reflects the attrition experience of the back book in line with the Company’s policy; and |
- | Deferred development expenditure which is capitalised where there is a clearly defined project, related expenditure is separately identifiable and it has been assessed for technical and commercial viability. |
Amortisation is calculated to write off the cost of the intangible assets over their useful life as follows: |
Contracts | - | 10% straight line |
Development costs | - | 10% to 25% straight line |
The carrying amounts of the company's assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated and an impairment provision made if appropriate. |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any provisions for impairment. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Short leasehold | - | 25% on cost |
Plant and machinery | - | 25% on cost |
Fixtures and fittings | - | 25% on cost |
Computer equipment | - | 25% on cost |
The carrying amounts of the company's assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated and an impairment provision made if appropriate. |
Investments in subsidiaries |
Investments in subsidiary undertakings, associates and joint ventures are stated at cost less provision for impairment. |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Leasing commitments |
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Differences between contributions payable in the period and contributions actually paid are shown as either accruals or prepayments in the balance sheet. |
Trade and other debtors |
Trade and other debtors are recognised and carried at their nominal value and are reduced by appropriate allowances for irrecoverable amounts. Provision for impairment is made through profit or loss when there is objective evidence that the Company will not be able to recover balances in full. Balances are written off when probability of recovery is assessed as being remote. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand. |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies above, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period. |
Amortisation |
The company accounts for amortisation in relation to the acquisition of debt management plan backbooks in accordance with FRS 102. The amortisation and expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgements are made on the estimated useful life of the assets based on historical experience of the length of a typical plan. The amortisation charge in the year is £2,389k (2022 - £2,824k). |
Depreciation |
The company accounts for depreciation in accordance with FRS 102. The depreciation and expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgements are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment. The depreciation charged in the year is £129k (2022 - £162k). |
Impairment on investments |
Investments in subsidiary undertakings are reviewed at each period end for recoverability and valuation to assess whether an impairment charge is necessary; impairment losses of £1,248k (2022 - £Nil) have been provided for at the reporting date in respect of investments that are not expected to return their book value. |
4. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£'000 | £'000 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£'000 | £'000 |
United Kingdom |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£'000 | £'000 |
Rents received |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£'000 | £'000 |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration |
2023 | 2022 |
£ | £ |
Directors' remuneration |
The emoluments of the directors are paid by Moneyplus Group Limited, which are recharged to the ultimate parent company. They are directors of both the parent company and a number of fellow subsidiaries. The total emoluments are included in the aggregate of directors emoluments disclosed in the financial statements of the ultimate parent company; Moneyplus Holdings Limited. |
7. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging: |
2023 | 2022 |
£'000 | £'000 |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Contracts amortisation |
Development costs amortisation |
Auditors' remuneration |
8. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£'000 | £'000 |
Impairment charge | ( |
) |
In the year, exceptional items comprise the impairment of Moneyplus Legal Limited investment. |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£'000 | £'000 |
Bank loan interest |
10. | TAX ON PROFIT ON ORDINARY ACTIVITIES |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 28th February 2023 nor for the year ended 28th February 2022. |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£'000 | £'000 |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2022 - |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Group relief surrendered / (claimed) | - | (426 | ) |
Losses not utilised | 46 | - |
Total tax charge | - | - |
At Budget 2021 the government announced that from 1 April 2023 the rate of corporation tax will be 25% for companies with annual profits over £250,000. For companies with annual profits below £50,000 the rate will remain at 19%. Marginal relief provisions will also be introduced so that, where a company's profits fall between the lower (£50,000) and upper (£250,000) limits, it will be able to claim an amount of marginal relief that bridges the gap between the lower and upper limits providing a gradual increase in the corporation tax rate. |
11. | RESTATEMENT OF COMPARATIVE FIGURES |
Following a review, the directors have determined that shared costs and introducer fees should be apportioned to MoneyPlus Insolvency Limited. |
The impact of this is on the financial statements is as follows: |
- | Reduced cost of sales by £667k. |
- | Reduced administrative expenditure by £373k. |
- | Increased inter-company balance with MoneyPlus Insolvency by £1,040k. |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
12. | INTANGIBLE FIXED ASSETS |
Development |
Contracts | costs | Totals |
£'000 | £'000 | £'000 |
COST |
At 1st March 2022 |
Additions |
At 28th February 2023 |
AMORTISATION |
At 1st March 2022 |
Amortisation for year |
At 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
13. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Computer |
leasehold | machinery | fittings | equipment | Totals |
£'000 | £'000 | £'000 | £'000 | £'000 |
COST |
At 1st March 2022 |
Additions |
At 28th February 2023 |
DEPRECIATION |
At 1st March 2022 |
Charge for year |
At 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
14. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£'000 |
COST |
At 1st March 2022 |
and 28th February 2023 |
PROVISIONS |
At 1st March 2022 | 2,545 |
Impairments | 1,248 |
At 28th February 2023 | 3,793 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
The directors believe that the carrying value of the investment is supported by the underlying net assets and future forecast cashflows. |
The following were subsidiary undertakings of the company: |
Name |
Country of incorporation |
Class of shares |
Holding |
Principal Activity |
Debt in Control Limited * | England and Wales | Ordinary | 100% | Dormant |
Moneyplus Legal Limited " | England and Wales | Ordinary | 100% | Legal services |
Moneyplus Blackburn Limited * | England and Wales | Ordinary | 100% | Dormant |
Kensington Knight Limited * | England and Wales | Ordinary | 100% | Dormant |
Clear Financial Solutions (UK) Limited * | England and Wales | Ordinary | 100% | Dormant |
The Debt People Limited * | England and Wales | Ordinary | 100% | Dormant |
Moneyplus 2010 Limited * | England and Wales | Ordinary | 100% | Dormant |
Patronus Group Limited * | England and Wales | Ordinary | 100% | Dormant |
R&R Financial Solutions Limited * | England and Wales | Ordinary | 100% | Dormant |
Hamilton Locke & Co. Limited * | England and Wales | Ordinary | 100% | Dormant |
Pathfinder Financial Services Limited * | England and Wales | Ordinary | 100% | Dormant |
Mollykit Ltd * | England and Wales | Ordinary | 100% | Dormant |
Bright Oak Limited * | England and Wales | Ordinary | 100% | Financial services |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
The following are subsidiaries of MoneyPlus 2010 Limited: |
Chiltern (UK) Limited* | England and Wales | Ordinary | 100% | Dormant |
The following are subsidiaries of Moneyplus Legal Limited: |
Richardson Mail Limited ' | England and Wales | Ordinary | 100% | Financial services |
Tenant Protect Limited ' | England and Wales | Ordinary | 100% | Financial services |
The registered office and principal place of business of all of the above mentioned companies is Riverside, New Bailey Street, Manchester, M3 5FS. |
* Subsidiary is exempt from the requirements of the Companies Act 2006 relating to the audit of its individual accounts by virtue of Section 477. |
' Subsidiary is exempt from the requirements of the Companies Act 2006 relating to the audit of its individual accounts by virtue of Section 479A. |
^ Subsidiary entered into administration on 21st September 2021 and moved to dissolution on 8th September 2022. |
" Subsidiary entered into liquidation on 10th November 2023. |
The financial year end of all of the subsidiaries is on 28th February 2023. |
15. | DEBTORS |
2023 | 2022 |
£'000 | £'000 |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 64 | 66 |
Tax |
Deferred tax asset |
Prepayments and accrued income |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£'000 | £'000 |
Trade creditors |
Amounts owed to group undertakings |
Taxation |
Social security and other taxation |
VAT | 27 | 112 |
Other creditors |
Accruals and deferred income |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£'000 | £'000 |
Other loans (see note 18) |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£'000 | £'000 |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
19. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£'000 | £'000 |
Within one year |
Between one and five years |
In more than five years |
20. | DEFERRED TAX |
£'000 |
Balance at 1st March 2022 | ( |
) |
Balance at 28th February 2023 | ( |
) |
The deferred tax balance is made up solely of timing differences in relation to the excess of capital allowances over depreciation. |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £'000 | £'000 |
Ordinary | £1.00 | 8 | 8 |
Ordinary A | £1.00 | - | - |
Deferred | £1.00 | 1 | 1 |
9 | 9 |
The ordinary shares and ordinary A shares carry equal voting rights. Deferred shares have no voting rights and have no rights to receive a dividend. In the event of winding up of the Company, the deferred shareholders shall receive up to the amount of the nominal value held, proportional with ordinary and ordinary A shareholders, with the balance of any remaining assets distributed proportionally to ordinary and ordinary A shareholders. |
22. | ULTIMATE PARENT COMPANY |
The immediate parent undertaking at the balance sheet date was Moneyplus Midco Limited and the ultimate parent undertaking was Moneyplus Holdings Limited, both companies are registered in England and Wales and their registered office is Riverside, New Bailey Street, Manchester M3 5FS. |
The parent company of the largest group that includes the company and for which consolidated financial statements are prepared is Moneyplus Holdings Limited. Copies of these financial statements can be obtained from the registered office at Riverside, New Bailey Street, Manchester M3 5FS. |
23. | CONTINGENCIES AND GUARANTEES |
The company is subject to an unlimited composite guarantee. The guarantee secures the liabilities of MoneyPlus Holdings and its subsidiaries. At 28 February 2023 the total amount of liabilities totalled £48,266,404 (2022 - £41,525,889). |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 28th February 2023 and 28th February 2022: |
2023 | 2022 |
£'000 | £'000 |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
MONEYPLUS GROUP LIMITED (REGISTERED NUMBER: 07310059) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 28th February 2023 |
25. | RELATED PARTY DISCLOSURES |
During the year, the Company entered into transactions, in the ordinary course of business, with the related parties below: |
Fees of £36k (2022: £50k) were incurred during the period to connected entities of E McNicol and C Davis. There was £1k (2022: £7k) outstanding at the reporting date. |