Company Registration No. 10497349 (England and Wales)
INVESTOO LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
INVESTOO LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
INVESTOO LTD
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
3,727,736
3,293,246
Tangible assets
4
15,660
17,955
Investments
5
161,875
161,875
3,905,271
3,473,076
Current assets
Debtors
6
2,671,264
897,060
Cash at bank and in hand
320,582
222,768
2,991,846
1,119,828
Creditors: amounts falling due within one year
7
(1,093,057)
(679,480)
Net current assets
1,898,789
440,348
Total assets less current liabilities
5,804,060
3,913,424
Capital and reserves
Called up share capital
15
15
Share premium account
8
5,466,926
5,466,926
Profit and loss reserves
8
337,119
(1,553,517)
Total equity
5,804,060
3,913,424
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
INVESTOO LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2020
31 December 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 5 February 2021 and are signed on its behalf by:
Mr D N Merry
Director
Company Registration No. 10497349
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 2020
1
Accounting policies
(Continued)
- 4 -
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
33% 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 2020
1
Accounting policies
(Continued)
- 5 -
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.
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.
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 2020
1
Accounting policies
(Continued)
- 6 -
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
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
27
39
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
3
Intangible fixed assets
Website
Internally generated website
Total
£
£
£
Cost
At 1 January 2020
5,130,597
762,131
5,892,728
Additions
483,656
-
483,656
Transfers
358,694
(358,694)
-
At 31 December 2020
5,972,947
403,437
6,376,384
Amortisation and impairment
At 1 January 2020
2,514,881
84,601
2,599,482
Amortisation charged for the year
474,376
33,271
507,647
Impairment losses
312,863
92,841
405,704
Reversal of past impairment loss
(864,185)
-
(864,185)
Transfers
98,334
(98,334)
-
At 31 December 2020
2,536,269
112,379
2,648,648
Carrying amount
At 31 December 2020
3,436,678
291,058
3,727,736
At 31 December 2019
2,615,716
677,530
3,293,246
An number of websites are purchased and maintained for use within the trade. The following websites are individually material to the accounts:
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INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
4
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2020
3,958
31,396
35,354
Additions
-
13,219
13,219
Disposals
(3,958)
-
(3,958)
At 31 December 2020
-
44,615
44,615
Depreciation and impairment
At 1 January 2020
562
16,837
17,399
Depreciation charged in the year
391
12,118
12,509
Eliminated in respect of disposals
(953)
-
(953)
At 31 December 2020
-
28,955
28,955
Carrying amount
At 31 December 2020
-
15,660
15,660
At 31 December 2019
3,396
14,559
17,955
5
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
1
1
Other investments other than loans
161,874
161,874
161,875
161,875
Movements in fixed asset investments
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 January 2020 & 31 December 2020
1
161,874
161,875
Carrying amount
At 31 December 2020
1
161,874
161,875
At 31 December 2019
1
161,874
161,875
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 9 -
6
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
189,459
131,545
Corporation tax recoverable
-
329,117
Other debtors
2,481,805
128,326
2,671,264
588,988
2020
2019
Amounts falling due after more than one year:
£
£
Deferred tax asset
-
308,072
Total debtors
2,671,264
897,060
7
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
50,000
-
Trade creditors
708,259
569,401
Corporation tax
137,058
-
Other taxation and social security
59,357
42,743
Other creditors
138,383
67,336
1,093,057
679,480
8
Reserves
Share premium
The share premium account
represents additional amounts paid for shares in excess of their nominal value
.
Profit and loss reserves
The
profit and loss
reserve represents cumulative profits and losses
.
9
Events after the reporting date
There are no events to report post the balance sheet date.
INVESTOO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
10
Related party transactions
During the year
Investoo Ltd reimbursed
D Merry, a director,
for expenses paid on behalf of the company
of £7
95,380
(2019: £
148,154
). The balance outstanding at the balance sheet date was £nil.
During the year Investoo Ltd made sales of £
16,256
(2019: £40,676) to KI Capital Ltd, a company in which D Merry is a director. Investoo Ltd made purchases of £2,
353,200
(2019: £
489,388
) from KI Capital Ltd. The balance outstanding at the balance sheet date was £614,211 due to KI Capital Ltd (2019: £38,115), which is shown within trade creditors. In addition a loan was made by Investoo Ltd to KI Capital of £
745,137
in the year which is outstanding in full at the balance sheet date. The loan is interest free and repayable on demand.
During the year Optimizer Invest Ltd (a company incorporated in Malta), a shareholder with significant influence over the company
charged management fees of £99,953. In addition a loan was ma
de
by Investoo Ltd to Op
timizer Invest Ltd
of £910,520 which is outstanding in full
at the balance sheet date
.
The loan is interest free and repayable on demand.
During the year Investoo Ltd made sales of £
70,810
(2019: £58,624) to Insurgence Ltd, a company in which D Merry is a director. Investoo Ltd made purchases of £
411,125
(2019: £309) from Insurgence Ltd. The balance outstanding at the balance sheet date was £14,860 due to Insurgence Ltd (2019: £17,753).
11
Parent company
There is no ultimate controlling party.