Company Registration No. 10497349 (England and Wales)
INVESTOO LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
INVESTOO LTD
COMPANY INFORMATION
Directors
Mr D N Merry
Mr A Lavold
Mr N Chamizo
(Appointed 18 January 2019)
Company number
10497349
Registered office
235 High Holborn
London
WC1V 7DN
Auditor
Kirk Rice LLP
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
INVESTOO LTD
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 30
INVESTOO LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the year ended 31 December 2019.
Introduction
Investoo Limited (the "Company") was incorporated in December 2016.
Principal activities
The company is a digital marketing company in the financial trading industry. It has rapidly grown into one of the largest financial digital marketing companies through its global reach.
The company assists retail investors looking to invest in financial products either through educating them with premium content or by referring them to broker partners ("Partners") through the Company's "Owned Media" assets. These 30+ website assets are either country or language specific and generate significant volumes of customer traffic to our Partners.
Our Partners offer a range of investment opportunities to retail investors, including trading in cryptocurrencies, foreign exchange, stock and shares ("Verticals").
The Company receives a financial commission in return for introducing investors who have expressed an interest in trading to our Partners and the commission is usually triggered when a deposit is made with a Partner. Additional revenue is generated by carrying press release materials or Partner sponsored content on our website assets or distributing such materials via mail shot.
Strategy and Objectives
Investoo's vision is to become the world's primary connection to investing online.
Our mission is to provide a holistic suite of services and platforms which allow investment brokers to reach their target audiences.
The Company will therefore continue to focus on growing the profitability of our Owned Media assets through increasing content quality for varied investor tastes and levels of sophistication, continuing to expand our Vertical diversification, increasing the educational content offered to our sites and potentially by acquiring new complimentary website assets. We will also introduce new Partners to our portfolio to satisfy widening investor needs.
Key Financial Results
An executive committee has established by the directors of the Company to facilitate the implementation of the Company's starategy and to monitor the Company's performance using comprehensive management reports and board poapers that are reviewed and discussed at monthly meetings with Investos's board of directors and shareholders. The most important key peformance indicators are outlined below:
Financial performance
The company's revenue decreased by 75% to £4.7m (2018: £18.5m) for continued operations. Gross profit margin improved to 55% (2018: 40%) for continued operations.
Financial Position
The Company's statement of its financial position remains sound at 31 December 2019 as the business continues to be a cash generative. Net assets at 31 December 2019 were £3.9m. The Company ended the period with £0.2m of cash.
The directors believe that the Company is a sustainable business that continues to build on its existing asset strength and position in the financial trading sector, It is further developing its global reach, investor experience and proposition to investors with better tailored content and education, better product and Partner diversification.
INVESTOO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Principle Risks and Uncertainties
The principal risks facing the Company include the highly competitive, popular and fast-moving nature of the retail financial sector that the Company operates within.
Furthermore, effective website search positioning remains critical to business success, with both the cost of achieving these optimal returns and the certainty of these returns being subject to factors which are to a degree beyond the Company's direct control as these are market led or driven by global concerns.
The Company seeks to mitigate these factors by continuing to invest in high quality employees across marketing content development, product development and research and technological advancement.
Operational risk
The effective management of risk is fundamental to the delivery of the strategic aims of the Company. The principal risks to the Company and the financial trading sector are summari
s
ed below explaining how these risks are managed and mitigated.
Regulatory Environment
The Company has website assets that operate across the globe in different jurisdictions that have differing levels of regulation.
There is a risk that changes to the regulatory environment could force the Company to revise its website content, strategy, operations and/or business model. Changes in regulation may also impact the Company's profitability as certain countries and their revenue streams may be impacted and additional compliance and/or operational costs incurred.
Non-compliance with regulations set by regulatory bodies, including data protection, anti-money laundering and retail investor protection may also have both reputational and financial implications.
This risk is mitigated through:
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Implementing processes to ensure compliance with all mandatory reporting obligations
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The employment of a General Counsel to act as a dedicated Legal, Regulation and Compliance advisor.
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The Chief Executive Officer is our Money Laundering Reporting Officer (MLRO).
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Purchasing of industry standard legal research tools to ensure all regulation is as up to date as possible.
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Diversification of products to prevent over reliance on a single product or Vertical that may be subject
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to a change in regulation
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Structural reorganisation to mitigate the risk of a product, asset or territory being materially impacted
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by a change in regulation
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IT systems and Cyber security
The Company's assets, intellectual property, personal data and day to day management of the business could be impaired through a failure in the Company's IT infrastructure.
Furthermore, any theft or misuse of customer data held by the Company could have reputational and financial implications for the Company.
This risk is mitigated through
:
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Restricting access to data, systems and code, including implementation of 2 Factor Authentication
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security protocols on broker accounts, customer databases, supplier accounts and the Company's
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Effective offboarding processes for leavers removing access rights with immediate effect.
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INVESTOO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
Principal Risks and Uncertainties (continued)
Reputational and Brand damage
Whilst the Company's brand recognition is low due its website assets having differing domain names, its brand nevertheless could be damaged by factors such as poor service, adverse press, unethical or unlawful activity.
Damage to the Company's brand could lead to a fall in retail investor confidence in our website assets, reducing the leads in to our Partners and thereby impacting revenue. Partners may terminate existing relationships due to falls in traffic and/or incurring reputational damage by association. Partners may also seek damages from the Company as a result of reputational damage, further impacting Company revenue.
This risk is mitigated through:
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Instilling a culture of transparency and ethical behaviour throughout the Company.
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The Executive Committee regularly reviewing Company risks and developing internal controls and
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appropriate approval levels to mitigate the risk of fraud or error.
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Executing the Company's strategy which has satisfying both retail investors and Partners as core pillars.
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Macroeconomic conditions
The Company derives its revenue from a multitude of markets globally. Partners are located across the world and Verticals have differing penetration rates by country. Revenue is therefore dependent on macroeconomic conditions, and the economic conditions in each of these markets. Changes in investor and/or Partner behaviour and pricing are impacted by fluctuations in the markets, that could impact the demand for the Company's assets and/or services.
This risk is mitigated through:
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Daily review of trading performance that covers not only Partner behaviour but also investor trends and
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Developing strong Partner relationships and loyalty through developing coherent marketing strategies and
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sharing knowledge of market opportunities and risks for mutual benefit.
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Diversification of products to prevent over reliance on a single product or Vertical that may be impacted by
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Building Customer Relationship Management strategies to build investor loyalty and retention.
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Retention and recruitment
The Company's success depends on the capabilities and commitment of its Executive Committee team and all other employees. The Company needs skilled skilled colleagues across Product, Technology, Marketing, Business
Development, Finance, HR, Legal and Operations that are essential for the business to meet its strategic goals.
The inability to attract, motivate, develop and retain highly skilled specialists and generalists in a competitive labour market could hinder the Company's operations, financial returns and its growth targets.
The Company continued to recruit and invest in its employees, divesting non-strategic business operations and replacing with key hires supporting our 2019 Strategy and ended the period at 43 colleagues.
This risk is mitigated through:
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Investment in learning and development, giving training and career opportunities for employee growth and
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upgrading their skill set.
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Providing competitive reward and compensation packages to all staff and rolling out new employee benefits
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that are appealing to start up colleagues.
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Investment in conducive, entrepreneurial and dynamic office and team environments.
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Instigating regular employee forums to gather feedback on cultural discussion areas that can be addressed
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INVESTOO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
Principal Risks and Uncertainties (continued)
Technology
The Company operates in a dynamic market with technologies becoming redundant and new technologies being developed at a rapid pace. The development of technology which provides superior functionality to our own at an equivalent or lower price point could adversely impact our ability to retain and attract visitors to our sites and Partners and could therefore impact the Company's growth and performance.
This risk is mitigated through:
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Actively developing new market disrupting technologies to be first to market in satisfying our Partner needs.
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Regularly reviewing our technological frameworks to ensure they adapt to be fit for purpose for ever-changing
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Hiring high quality technology resource to bring the most up to date skill set in to the Company
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Investing in our Technology team's training and development with a view to ensuring their skill set remains up
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to date with market changes.
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Investing in the best third-party solutions to support our Product and Technology development to gain
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immediate high-quality support without high operating cost burdens.
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Key Performance Indicators
The Executive Committee team review key performance indicators ("KPIs") on a daily, weekly and monthly basis to ensure performance is in line with the company's strategy and forecasts. These cover commercial and financial KPIs.
We continue to invest in our internal data analysis and insights to facilitate this.
The Company's main commercial KPIs are Traffic, Lead and First Time Deposit (FTD) volumes and Lead conversion %s. The main Financial KPIs are Revenue, Gross Profit (£ and %), Operating expenditure, Operating Profit (£ & %) and Net Profit (£ & %).
Mr D N Merry
Director
29 April 2020
INVESTOO LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 5 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D N Merry
Mr A Lavold
Mr N Chamizo
(Appointed 18 January 2019)
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:
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select suitable accounting policies and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent;
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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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
INVESTOO LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
Transition to FRS 102
The directors have elected to prepare the financial statements in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 (previously prepared
in accordance with International Financial Reporting Standards and IFRIC
interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS
) as the directors are of the opinion that this accounting standard is more appropriate for the size of the company.
On behalf of the board
Mr D N Merry
Director
29 April 2020
INVESTOO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INVESTOO LTD
- 7 -
Opinion
We have audited the financial statements of Investoo Ltd (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 FRS 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 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
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.
The impact of uncertainties due to the UK exiting the European Union on our audit
Uncertainties related to the effects of Brexit are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance.
Brexit is one of the most significant economic events for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the company's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible implications for a company and this is particularly the case in relation to Brexit.
The impact of uncertainties due to the coronavirus crisis on our audit
Uncertainties related to the effects of the coronavirus crisis and the impact this is having on the UK and worldwide economy are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance.
The coronavirus pandemic is a highly unusual event in UK history and it has had a significant impact on both our own and the worldwide economy and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the company’s future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to the coronavirus outbreak.
INVESTOO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTOO LTD
- 8 -
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
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the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
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the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
INVESTOO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTOO LTD
- 9 -
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s 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.
Timothy Neale (Senior Statutory Auditor)
for and on behalf of Kirk Rice LLP
29 April 2020
Statutory Auditor
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
INVESTOO LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations
2019
operations
operations
2018
Notes
£
£
£
£
£
£
Turnover
3
4,661,862
-
4,661,862
18,524,262
8,765,593
27,289,855
Cost of sales
(2,118,088)
-
(2,118,088)
(11,111,946)
(6,812,631)
(17,924,577)
Gross profit
2,543,774
-
2,543,774
7,412,316
1,952,962
9,365,278
Administrative expenses
(2,841,187)
-
(2,841,187)
(8,488,087)
(641,114)
(9,129,201)
Operating (loss)/profit
4
(297,413)
-
(297,413)
(1,075,771)
1,311,848
236,077
Interest payable and similar expenses
7
(55)
-
(55)
(337,869)
-
(337,869)
Amounts written off investments
8
(197,070)
-
(197,070)
-
-
-
Loss before taxation
(494,538)
-
(494,538)
(1,413,640)
1,311,848
(101,792)
Tax on loss
9
695,782
-
695,782
-
-
-
Profit/(loss) for the financial year
201,244
-
201,244
(1,413,640)
1,311,848
(101,792)
INVESTOO LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
2019
2018
£
£
Profit/(loss) for the year
201,244
(101,792)
Other comprehensive income
-
-
Total comprehensive income for the year
201,244
(101,792)
INVESTOO LTD
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 12 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
12
3,293,246
3,057,070
Tangible assets
13
17,955
19,567
Investments
14
161,875
358,944
3,473,076
3,435,581
Current assets
Debtors
16
897,060
1,408,780
Cash at bank and in hand
222,768
458,223
1,119,828
1,867,003
Creditors: amounts falling due within one year
17
(679,480)
(533,524)
Net current assets
440,348
1,333,479
Total assets less current liabilities
3,913,424
4,769,060
Provisions for liabilities
18
-
(1,056,880)
Net assets
3,913,424
3,712,180
Capital and reserves
Called up share capital
21
15
15
Share premium account
22
5,466,926
5,466,926
Profit and loss reserves
22
(1,553,517)
(1,754,761)
Total equity
3,913,424
3,712,180
The financial statements were approved by the board of directors and authorised for issue on 29 April 2020 and are signed on its behalf by:
Mr D N Merry
Director
Company Registration No. 10497349
INVESTOO LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2017
10
1,639,990
(1,652,969)
(12,969)
Year ended 31 December 2018:
Loss and total comprehensive income for the year
-
-
(101,792)
(101,792)
Issue of share capital
21
5
3,826,936
-
3,826,941
Balance at 31 December 2018
15
5,466,926
(1,754,761)
3,712,180
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
201,244
201,244
Balance at 31 December 2019
15
5,466,926
(1,553,517)
3,913,424
INVESTOO LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 14 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(99,002)
1,894,078
Interest paid
(55)
(337,869)
Income taxes refunded/(paid)
442,393
-
Net cash inflow from operating activities
343,336
1,556,209
Investing activities
Purchase of intangible assets
(569,753)
(3,710,123)
Proceeds on disposal of intangibles
-
481
Purchase of tangible fixed assets
(9,037)
(26,317)
Purchase of subsidiaries
(1)
-
Purchase of fixed asset investments
-
(358,944)
Net cash used in investing activities
(578,791)
(4,094,903)
Financing activities
Proceeds from issue of shares
-
3,826,941
Repayment of borrowings
-
(3,410,600)
Net cash (used in)/generated from financing activities
-
416,341
Net decrease in cash and cash equivalents
(235,455)
(2,122,353)
Cash and cash equivalents at beginning of year
458,223
2,580,576
Cash and cash equivalents at end of year
222,768
458,223
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 15 -
1
Accounting policies
Company information
Investoo Ltd is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the company’s operations, albeit not entirely adverse due to the nature of digital marketing. In response to the COVID-19 pandemic, the directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact
true
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.
1.3
Turnover
Revenue is measured at the fair value of the consideration received or receivable for services provided in the normal course of business, net of discounts, VAT and other sales-related taxes. The following revenue activities are carried out:
Commission
The company recognises fixed commission revenue from trading platforms in exchange for the referral of online traffic to each platform.
Revenue is recognised, depending on the agreement in place, over the life of the contract on a fixed basis and is billed monthly base on registered referrals.
Additional revenue is recognised as one-time sums when a referral makes a first time deposit with an online trading platform.
Sale of currencies
The company recognises revenue on the sale of digital currencies that are bought to order. Revenue is recognised when control of the digital currency is transferred to the customer.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
1.4
Intangible fixed assets other than goodwill
Externally acquired intangible assets are recognised initially at cost.
At each reporting date, the Company review the carrying amounts of its intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the
asset is estimated in order to determine the extent of the impairment loss (if any).
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website
10% on cost
Internally generated website
10% on cost
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
33% on cost
Computers
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Fixed asset investments
Interests
in
unlisted investments, which are not
subsidiaries, associates
or
jointly controlled entities
,
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 17 -
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Debtors do not carry interest and are stated at their nominal value. Appropriate allowances for estimated irrecoverable amounts are recognised in the Profit and Loss account when there is objective evidence that the asset is impaired.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Creditors are not interest bearing and are included at their nominal value.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Impairment of non-financial assets
T
he value of non-financial assets is independently reviewed at the balance sheet date
any impairment proposed is shown in the period. In assessing impairment, management estimates the recoverable amount of
each asset or cash generating unit based on expected future cashflows and uses an interest rate to discount them. Estimation
uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.
3
Turnover and other revenue
2019
2018
£
£
Turnover analysed by class of business
Commission
4,661,862
18,524,262
Provision of service of buying cryptocurrencies on behalf of customers
-
8,765,593
4,661,862
27,289,855
2019
2018
£
£
Turnover analysed by geographical market
United Kingdom
4,661,862
27,289,855
4
Operating (loss)/profit
2019
2018
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
48,903
890,656
Fees payable to the company's auditor for the audit of the company's financial statements
9,250
10,640
Depreciation of owned tangible fixed assets
10,649
6,750
Amortisation of intangible assets
333,577
291,461
Impairment of intangible assets
-
1,974,444
Reversal of past impairment of intangible assets
-
(460,103)
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
BD/Sales
-
8
Management
2
3
Marketing
11
15
Operations
5
8
Product/Delivery/Design
5
13
Technology
6
10
Affiliate Services
6
-
Business development
4
-
Total
39
57
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
1,443,014
3,267,411
Social security costs
225,836
363,186
Pension costs
35,158
32,125
1,704,008
3,662,722
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
-
130,317
Company pension contributions to defined contribution schemes
-
1,002
-
131,319
7
Interest payable and similar expenses
2019
2018
£
£
Other finance costs:
Other interest
55
337,869
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 22 -
8
Amounts written off investments
fixed asset investments
2019
2018
£
£
Other gains and losses
(197,070)
-
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
(329,117)
-
Adjustments in respect of research and development
(442,393)
-
Total current tax
(771,510)
-
Deferred tax
Other adjustments
75,728
-
Total tax credit
(695,782)
-
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Loss before taxation
(494,538)
(101,792)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
(93,962)
(19,340)
Tax effect of expenses that are not deductible in determining taxable profit
8,532
10,147
Unutilised tax losses carried forward
93,856
56,080
Permanent capital allowances in excess of depreciation
(8,426)
(46,887)
Research and development tax credit
(771,510)
-
Deferred tax adjustments
75,728
-
Taxation credit for the year
(695,782)
-
10
Discontinued operations
Provision of service of buying cryptocurrencies on behalf of customers
During the prior
year the company decided to no longer provide the service of buying cryptocurrencies on behalf of customers. The company act
ed
as a principal in these transactions
. More information on the discontinued operations arising in the year is given in the Profit and Loss Account.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 23 -
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2019
2018
Notes
£
£
In respect of:
Intangible assets
12
-
1,974,444
Fixed asset investments
14
197,070
-
Recognised in:
Administrative expenses
-
1,974,444
Amounts written off investments
197,070
-
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
Reversals of previous impairment losses have been recognised in profit or loss as follows:
2019
2018
Notes
£
£
In respect of:
Intangible assets
12
-
460,103
Recognised in:
Administrative expenses
-
460,103
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 24 -
12
Intangible fixed assets
Website
Internally generated website
Total
£
£
£
Cost
At 1 January 2019
4,906,363
416,612
5,322,975
Additions
224,234
345,519
569,753
At 31 December 2019
5,130,597
762,131
5,892,728
Amortisation and impairment
At 1 January 2019
2,224,245
41,660
2,265,905
Amortisation charged for the year
290,636
42,941
333,577
At 31 December 2019
2,514,881
84,601
2,599,482
Carrying amount
At 31 December 2019
2,615,716
677,530
3,293,246
At 31 December 2018
2,682,118
374,952
3,057,070
The following websites are individually material to the accounts:
|
|
|
Remaining amortisation period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 25 -
13
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2019
-
26,317
26,317
Additions
3,958
5,079
9,037
At 31 December 2019
3,958
31,396
35,354
Depreciation and impairment
At 1 January 2019
-
6,750
6,750
Depreciation charged in the year
562
10,087
10,649
At 31 December 2019
562
16,837
17,399
Carrying amount
At 31 December 2019
3,396
14,559
17,955
At 31 December 2018
-
19,567
19,567
14
Fixed asset investments
2019
2018
Notes
£
£
Investments in subsidiaries
15
1
-
Unlisted investments
161,874
358,944
161,875
358,944
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
14
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 January 2019
-
358,944
358,944
Additions
1
-
1
At 31 December 2019
1
358,944
358,945
Impairment
At 1 January 2019
-
-
-
Impairment losses
-
197,070
197,070
At 31 December 2019
-
197,070
197,070
Carrying amount
At 31 December 2019
1
161,874
161,875
At 31 December 2018
-
358,944
358,944
During the period ended 31 December 2018,
the company purchased 46,160 shares in Skilling Holdings Limited, a company incorporated in Malta.
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2019 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Investoo Media (UK) Limited
1
Ordinary
100.00
0
Registered office addresses (all UK unless otherwise indicated):
1 Floor 3, 235 High Holborn, London, WC1V 7LE
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 27 -
16
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
131,545
267,648
Corporation tax recoverable
329,117
-
Other debtors
74,416
583,192
Prepayments and accrued income
53,910
174,140
588,988
1,024,980
2019
2018
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 19)
308,072
383,800
Total debtors
897,060
1,408,780
17
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
569,401
393,919
Taxation and social security
42,743
84,389
Other creditors
22,404
14,299
Accruals and deferred income
44,932
40,917
679,480
533,524
18
Provisions for liabilities
2019
2018
£
£
Legal claims
-
1,056,880
Legal claims
provisions
in the prior year
are in respect of three separate legal claims as follows:
A recruitment agency
took
legal action against the company.
A
provision
was
recognised for expected claims based on
the terms of the contract.
This claim was settled during the year and the provision of £36,000 was released.
A second recruitment agency
took
legal action against the company to recover funds.
This claim was settled during the year and the provision of £20,880 was released.
A third party
took
action over the acquisition of a website that did not take place. The third party entered into a legal
claim on the basis that the contract was verbally agreed.
The claimant has not pursued their claim any further and so the provision of £1,000,000 was reversed.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 28 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2019
2018
Balances:
£
£
Tax losses
308,072
383,800
2019
Movements in the year:
£
Asset at 1 January 2019
(383,800)
Charge to profit or loss
75,728
Asset at 31 December 2019
(308,072)
A reduction in the UK corporation tax rate from 20% to 19% (effective from 1 April 2017) was substantially enacted on 26
October 2015. Further reductions to 18% (effective 1 April 2020) were enacted on 26 October 2015 and an additional
reduction to 17% (effective 1 April 2020) was substantively enacted on 6 September 2016. This will reduce the company's
future current tax charge accordingly. The deferred tax
asset
at 31 December 201
9
has been calculated based on these
rates.
20
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,158
32,125
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,501,565 Ordinary shares of 0.00001p each
15
15
Each Ordinary share benefits from full voting, dividend and distribution rights.
22
Reserves
Share premium
The share premium account
represents additional amounts paid for shares in excess of their nominal value
.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
22
Reserves
(Continued)
- 29 -
Profit and loss reserves
The
profit and loss
reserve represents cumulative profits and losses
.
23
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
80,000
465,000
Between two and five years
-
139,500
80,000
604,500
24
Events after the reporting date
There are no events to report post the balance sheet date.
25
Related party transactions
During the year D Merry, a director, made sales of £298,168 (2018: £2,026,381) to Investoo Ltd for contractor and cryptocurrency services. D Merry made purchases of £10,010 (2018: £104,302) from Investoo Ltd. D Merry provided a loan to the company of £nil (2018: £355,000). The balance outstanding at the balance sheet date was £4,168 due to D Merry (2018: £6,799). The loan is interest free and repayable on demand.
During the year Investoo Ltd made sales of £(40,676) (2018: £312,658) to Ki Capital Ltd, a company in which D Merry is a director. Investoo Ltd made purchases of £349,384 (2018: £98,258) from Ki Capital Ltd. The balance outstanding at the balance sheet date was £38,115 due to Ki Capital Ltd (2018: £11,597).
During the year Investoo Ltd made purchases of £nil (2018: £136,632) from Optimizer Invest Ltd (a company incorporated in Malta), a shareholder with significant influence over the company. The balance outstanding at the balance sheet date was £nil (2018: £nil).
During the year Investoo Ltd made sales of £58,624 (2018: £nil) to Insurgence Ltd, a company in which D Merry is a director. Investoo Ltd made purchases of £309 (2018: £nil) from Insurgence Ltd. The balance outstanding at the balance sheet date was £17,753 due to Insurgence Ltd (2018: £nil).
26
Ultimate controlling party
There is no ultimate controlling party.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 30 -
27
Transition to FRS 102
The directors have elected to prepare the financial statements in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 (previously prepared
in accordance with International Financial Reporting Standards and IFRIC
interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS
) as the directors are of the opinion that this accounting standard is more appropriate for the size of the company.
As a result of the transition to FRS 102, the brought forward cost and amortisation of websites have been restated (see Note 11) due to impairment losses incurred in the prior period being recognised against the cost of the websites under IFRS. Under FRS 102, impairment losses are recognised within amortisation.
There have been no other changes to the figures presented in the comparative period.
28
Cash (absorbed by)/generated from operations
2019
2018
£
£
Profit/(loss) for the year after tax
201,244
(101,792)
Adjustments for:
Taxation credited
(695,782)
-
Finance costs
55
337,869
Amortisation and impairment of intangible assets
333,577
1,805,802
Depreciation and impairment of tangible fixed assets
10,649
6,750
Amounts written off investments
197,070
-
(Decrease)/increase in provisions
(1,056,880)
1,056,880
Movements in working capital:
Decrease in debtors
765,109
2,436,534
Increase/(decrease) in creditors
145,956
(3,647,965)
Cash (absorbed by)/generated from operations
(99,002)
1,894,078
29
Analysis of changes in net funds
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
458,223
(235,455)
222,768
2019-12-31
2019-01-01
false
CCH Software
CCH Accounts Production 2020.100
No description of principal activity
Mr D N Merry
Mr A Lavold
Mr N Chamizo
10497349
2019-01-01
2019-12-31
10497349
bus:Director1
2019-01-01
2019-12-31
10497349
bus:Director2
2019-01-01
2019-12-31
10497349
bus:Director5
2019-01-01
2019-12-31
10497349
bus:Director3
2019-01-01
2019-12-31
10497349
bus:RegisteredOffice
2019-01-01
2019-12-31
10497349
2019-12-31
10497349
core:ContinuingOperations
2019-01-01
2019-12-31
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10497349
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2018-12-31
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2018-12-31
10497349
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2019-12-31
10497349
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2018-12-31
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2019-12-31
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2019-12-31
10497349
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2018-12-31
10497349
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2019-12-31
10497349
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2019-12-31
10497349
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2018-12-31
10497349
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2018-12-31
10497349
2018-12-31
10497349
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2019-12-31
10497349
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2019-12-31
10497349
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2018-12-31
10497349
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2018-12-31
10497349
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2019-12-31
10497349
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2018-12-31
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2019-12-31
10497349
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2018-12-31
10497349
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2019-12-31
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2018-12-31
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2019-12-31
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2019-12-31
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2019-12-31
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2019-01-01
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2019-12-31
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2019-01-01
2019-12-31
10497349
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2019-01-01
2019-12-31
10497349
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2019-12-31
10497349
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2018-12-31
10497349
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2018-12-31
10497349
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2019-01-01
2019-12-31
10497349
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2019-01-01
2019-12-31
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2019-01-01
2019-12-31
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