Registration number:
Paybase Limited
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Brebners
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Paybase Limited
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Statement of Income and Retained Earnings |
|
Statement of Financial Position |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Paybase Limited
Company Information
Director |
A Tsyupko |
Registered office |
|
Auditor |
|
Paybase Limited
Strategic Report for the Year Ended 31 December 2021
The director presents the strategic report for the year ended 31 December 2021.
Principal activity
The principal activity of the company is the delivery of an electronic money payments platform to business partners in a Software-as-a-Service model. Paybase Limited is registered with the FCA and has been granted the status of Authorised Electronic Money Institution.
Fair review of the business
The electronic money payments platform was brought into working order and launched to fee paying business partners in 2019. Revenue is therefore now being generated from the platform. However significant costs have still been incurred in 2021 in relation to the ongoing support of the platform offering.
The loss for the year amounted to £80,510 compared to a loss of £2,641,223 in 2020. However the most significant overhead in 2021 related to amortisation of development costs of £438,012.
HMRC research and development taxation credits of £144,368 (2020: £252,658) were received in the year which assisted with working capital management.
Principal risks and uncertainties
Risk Assessment
The board have carried out an ongoing assessment of the risks facing the company, through their monthly meetings. COVID-19 has had a negative impact on the business with increased business and operational risk. However, preventative measures are being taken and the entity has sufficient capital resources through the ongoing support of the parent company.
As the core focus of the business has been the UK market, we do not foresee Brexit having a significant impact on the business in 2021 and going forwards.
Regulation
The company is authorised by the Financial Conduct Authority as an Electronic Money Institution.
Credit Risk
Credit risk is the risk that counterparties will not be able to meet their obligations as they fall due. The company has a limited number of counterparties and there are regular credit reviews of counterparty limits to ensure
debtors remain at a reasonable level.
Operational Risk
The directors maintain a strong governance and control environment and further, the size of the company lends itself to good levels of control. The company seeks to continually improve its operating efficiencies and standards.
Liquidity Risk
The company ensures that liquidity is maintained by monitoring liquid assets regularly and ensuring the company
retains flexibility in the management of liquid assets.
Foreign Currency Risk
The company is not exposed to significant foreign currency risk as both sales contracts and expenditure are predominantly denominated in Sterling. Where significant loans from parent undertakings are denominated in EUR, the foreign exchange risk is borne by the parent.
Paybase Limited
Strategic Report for the Year Ended 31 December 2021
Future Developments
Subsequent to 31 December 2021 the company transferred its electronic money payments platform to the parent undertaking. Following this transfer the director is assessing the future strategy for the company.
Approved by the
.........................................
Director
Paybase Limited
Director's Report for the Year Ended 31 December 2021
The director presents her report and the financial statements for the year ended 31 December 2021.
Director of the company
The director who held office during the year was as follows:
Disclosure of information to the auditors
The director has taken steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that she knows of and of which she knows the auditors are unaware.
Information included in the Strategic Report
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial risk management and exposure.
Approved by the director on
.........................................
A Tsyupko
Director
Paybase Limited
Statement of Director's Responsibilities
The director acknowledges her responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is 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 director is required to:
• |
select suitable accounting policies and 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; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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.
Paybase Limited
Independent Auditor's Report to the Members of Paybase Limited
for the Year Ended 31 December 2021
Opinion
We have audited the financial statements of Paybase Limited (the 'company') for the year ended 31 December 2021, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, 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 31 December 2021 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 Auditor’s 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.
Material uncertainty related to going concern
We draw attention to note 2 in the financial statements, which indicates that the company had a deficiency of net assets of £1,276,863 at 31 December 2021 and was dependent upon the continued support of the parent undertaking and the director. Additionally, this note refers to the uncertainty connected with the global Covid-19 pandemic. As stated in note 2 these matters indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the entity was unable to continue as a going concern. Our opinion is not modified in respect of this matter.
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Paybase Limited
Independent Auditor's Report to the Members of Paybase Limited
for the Year Ended 31 December 2021
Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
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 director's remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities (set out on page 5), the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s 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 an auditor’s 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.
Paybase Limited
Independent Auditor's Report to the Members of Paybase Limited
for the Year Ended 31 December 2021
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:
Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws, health and safety legislation, data protection legislation and FCA regulations. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing bank receipts; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 an auditor’s 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
130 Shaftesbury Avenue
W1D 5AR
Paybase Limited
Statement of Income and Retained Earnings for the Year Ended 31 December 2021
Note |
2021 |
2020 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross loss |
( |
( |
|
Administrative expenses |
( |
( |
|
Impairment of intangibles |
131,319 |
(971,890) |
|
Other operating income |
|
|
|
Operating loss |
( |
( |
|
Interest payable and similar charges |
( |
( |
|
Loss before tax |
( |
( |
|
Taxation |
|
|
|
Loss for the financial year |
( |
( |
|
Retained earnings brought forward |
(11,328,121) |
(8,686,898) |
|
Retained earnings carried forward |
(11,408,631) |
(11,328,121) |
Paybase Limited
Statement of Financial Position as at 31 December 2021
Note |
2021 |
2020 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
- |
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
( |
( |
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
9,704,094 |
9,704,094 |
|
Share premium reserve |
427,674 |
427,674 |
|
Profit and loss account |
(11,408,631) |
(11,328,121) |
|
Shareholders' deficit |
(1,276,863) |
(1,196,353) |
Company registration number: 08649018
Approved and authorised by the
......................................................................
A Tsyupko
Director
Paybase Limited
Statement of Changes in Equity for the Year Ended 31 December 2021
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 1 January 2020 |
|
|
( |
|
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
New share capital subscribed |
|
- |
- |
|
At 31 December 2020 |
|
|
( |
( |
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 1 January 2021 |
|
|
( |
( |
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
At 31 December 2021 |
|
|
( |
( |
Paybase Limited
Statement of Cash Flows for the Year Ended 31 December 2021
Note |
2021 |
2020 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
- |
|
|
Finance costs |
|
|
|
Income tax expense |
( |
( |
|
Impairment (loss)/reversal on intangible assets |
(131,319) |
971,890 |
|
|
( |
||
Working capital adjustments |
|||
Decrease in debtors |
|
|
|
(Decrease)/increase in creditors |
( |
|
|
Cash generated from operations |
( |
( |
|
Income taxes received |
|
|
|
Net cash flow from operating activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from issue of ordinary shares, net of issue costs |
- |
|
|
(Repayment)/proceeds of other borrowing |
- |
( |
|
Payments to finance lease creditors |
( |
( |
|
Net cash flows from financing activities |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
30,372 |
31,472 |
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company is that of the delivery of an electronic money payments platform to business partners.
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Material uncertainty in relation to going concern
The company made a loss for the year ended 31 December 2021 of £80,510 and the statement of financial position shows net liabilities amounting to £1,276,863 at that date.
The company has few fixed overheads since the the platform was completed in 2020 and therefore no further staff input is required. There are current PAYE/NI arrears of approximately £86,041 which is expected to be settled in 2022 with the assistance from the parent undertaking.
The company has no bank facilities and relies upon share capital and loans provided by the parent undertaking and the director. At 31 December 2021 an amount of £724,957 was due to group undertakings and £452,505 was due to a director, both of whom have agreed not to call for repayment until such time as the company has sufficient working capital.
The ultimate parent undertaking has confirmed it will continue to support the company and to provide further working capital to meet the company's obligations. However, its latest audited financial statements are to 31 December 2019 and show a deficit of assets of €1,086,885. These financial statements include a statement by the directors that there exists a material uncertainty which may cast significant doubt over the company's ability to continue as a going concern.
The director believes however that the ultimate parent undertaking will remain in a position to provide continued support as it has done so to date whilst the board concentrate on the future strategic direction for the company following the transfer of the platform to the parent undertaking in 2022.
The director has also considered the potential effect of the current Covid-19 crisis and with restrictions lifted, the director is hopeful that the worst of the crisis is over. There is no certainty as to when normality will fully return, but the director's view is that the impact will be manageable.
Accordingly the director believes that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons she continues to adopt the going concern basis in preparing the financial statements. However the factors above represent a material uncertainty in relation to going concern.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
i) Goodwill and intangible assets
The entity establishes a reliable estimate of the useful life of goodwill and intangible assets arising from the platform and app development. This estimate is based on a variety of factors such as the expected use of the developments and the expected useful life of the cash-generating units to which development is attributed. The entity tests annually whether intangible assets have suffered any impairment where the carrying value exceeds the recoverable amount.
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
ii) Development expenditure
Development expenditure is capitalised in the statement of financial position. The initial capitalisation of such costs is based on management's judgement as to the technical and economic feasibility of project completion and assumptions regarding expected future cash generation, expected period of benefit and discount rates applied.
Other than those involving estimations there are no judgements that management have made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised by applying the accruals model where there is reasonable assurance that:
(a) the entity will comply with the conditions attaching to them; and
(b) the grants will be received.
Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grant amounts relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.
Where part of a grant relating to an asset is deferred it is recognised as deferred income and not deducted from the carrying amount of the asset and released to profit and loss over the expected useful life of the asset.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Computer equipment |
3 years straight line |
Intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Platform development is carried out in phases. Amortisation of platform development is only provided on a phase once it is operational and generating revenue.
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over the useful life of each phase as follows:
Asset class |
Amortisation method and rate |
Intellectual Property |
5 years straight line |
Development expenditure |
3 to 5 years straight line |
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset , an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Income Statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Financial instruments
Recognition and measurement
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Impairment
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2021 |
2020 |
|
Rendering of services |
|
|
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2021 |
2020 |
|
Government grants |
|
|
Other operating income |
|
- |
220,939 |
62,253 |
Operating loss |
Arrived at after charging/(crediting)
2021 |
2020 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Impairment (reversal)/loss |
( |
|
Foreign exchange (gains)/losses |
( |
|
Loss on disposal of property, plant and equipment |
- |
|
Interest payable and similar expenses |
2021 |
2020 |
|
Interest expense on other finance liabilities |
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2021 |
2020 |
|
Wages and salaries |
- |
|
Social security costs |
- |
|
Redundancy costs |
- |
|
- |
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2021 |
2020 |
|
Production staff |
0 |
|
Management staff |
0 |
|
|
|
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Director's remuneration |
The director's remuneration for the year was as follows:
2021 |
2020 |
|
Remuneration |
- |
|
Auditor's remuneration |
2021 |
2020 |
|
Audit of the financial statements |
|
|
Taxation |
Tax charged/(credited) in the income statement
2021 |
2020 |
|
Current taxation |
||
UK corporation tax |
( |
( |
Intangible assets |
Development costs |
Intellectual property |
Total |
|
Cost or valuation |
|||
At 1 January 2021 |
|
|
|
At 31 December 2021 |
|
|
|
Amortisation |
|||
At 1 January 2021 |
|
|
|
Amortisation charge |
|
- |
|
Impairment |
( |
- |
( |
At 31 December 2021 |
|
|
|
Carrying amount |
|||
At 31 December 2021 |
|
- |
|
At 31 December 2020 |
|
- |
|
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Tangible assets |
Computer equipment |
Total |
|
Cost or valuation |
||
At 1 January 2021 |
|
|
At 31 December 2021 |
|
|
Depreciation |
||
At 1 January 2021 |
|
|
Charge for the year |
|
|
At 31 December 2021 |
|
|
Carrying amount |
||
At 31 December 2021 |
- |
- |
At 31 December 2020 |
|
|
Debtors |
2021 |
2020 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments & accrued income |
- |
|
Total current trade and other debtors |
|
|
Creditors |
2021 |
2020 |
|
Due within one year |
||
Finance leases |
|
|
Trade creditors |
|
|
Amounts due to group undertakings |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals & deferred income |
|
|
|
|
|
Due after one year |
||
Finance leases |
- |
|
Obligations under finance leases are secured on the assets concerned.
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
|
|
9,704,094 |
|
9,704,094 |
Reserves |
The share premium account contains the premium arising on issue of equity shares, net of issue expenses.
The profit and loss account includes all current and prior retained earnings and accumulated losses.
Obligations under operating leases |
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
- |
|
Related party transactions |
Exemption is taken under FRS 102 paragraph 33.1A not to disclose transactions or amounts falling due with companies wholly owned within the group.
Key management compensation
2021 |
2020 |
|
Salaries and other short term employee benefits |
- |
|
Other transactions with related parties
At 31 December 2021 an amount of £452,505 (2020: £433,094) was due to the director. Interest payable to the director for the year ended 31 December 2021 amounted to £12,811 (2020: £11,368).
At 31 December 2021 an amount of £605,436 (2020: £342,138) was due to a group undertaking not wholly owned within the group in respect of working capital provided. Interest payable for the year ended 31 December 2021 amounted to £25,105 (2020: £8,757).
Also at 31 December 2021 an amount of £161,583 (2020: £154,558) was due to a company under the control of the director in respect of working capital provided. Interest payable for the year ended 31 December 2021 amounted to £7,136 (2020: £7,281).
Paybase Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Parent and ultimate parent undertaking |
The controlling party and ultimate parent undertaking is Jareck Limited, incorporated in Cyprus.
The parent company of the smallest and largest group preparing consolidated financial statements incorporating the results of the company is Dolfinancials Limited, whose registered office is 130 Shaftesbury Avenue, London, W1D 5EU. The consolidated financial statements of Dolfinancials Limited may be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.
Non adjusting events after the financial period |
|