Pay Later Financial Services Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 30 June 2019
Company Registration No. 9020100 (England and Wales)
Pay Later Financial Services Limited
Company Information
Directors
J Dykes
M Malik
(Appointed 24 June 2020)
S Jeffrey
(Appointed 24 June 2020)
Company number
9020100
Registered office
4th Floor, 33 Cannon Street
London
United Kingdom
EC4M 5SB
Pay Later Financial Services Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 6
Pay Later Financial Services Limited
Balance Sheet
As at 30 June 2019
Page 1
2019
2018
as restated
Notes
£
£
£
£
Current assets
Debtors
2
712,478
843,048
Cash at bank and in hand
329,066
109,679
1,041,544
952,727
Creditors: amounts falling due within one year
3
(1,132,865)
(567,154)
Net current (liabilities)/assets
(91,321)
385,573
Creditors: amounts falling due after more than one year
4
-
(500,000)
Net liabilities
(91,321)
(114,427)
Capital and reserves
Called up share capital
5
1
1
Profit and loss reserves
(91,322)
(114,428)
Total equity
(91,321)
(114,427)
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 30 June 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act 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.
Pay Later Financial Services Limited
Balance Sheet (Continued)
As at 30 June 2019
Page 2
The financial statements were approved by the board of directors and authorised for issue on 30 June 2020 and are signed on its behalf by:
J Dykes
Director
Company Registration No. 9020100
Pay Later Financial Services Limited
Notes to the Financial Statements
For the year ended 30 June 2019
Page 3
1
Accounting policies
Company information
Pay Later Financial Services Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
4th Floor, 33 Cannon Street, London, United Kingdom, EC4M 5SB.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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 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 pound.
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 company relies on support from an associated company, Pay Later Group Limited (PLG), for its working capital. A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that
PLG
has adequate resources to continue
to support the
operational existence
of the company
for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the settlement and managements fees earned from the administration of a finance arrangement between an individual and a third party investing company.
Turnover from origination, servicing and settlement services are recognised on a receipt basis as this is when it is probable that the Company will receive the consideration due under contract. Fees which are paid upfront are deferred over the loan term.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Cash at bank and in hand
Cash at bank and in hand
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.
1.5
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.
Pay Later Financial Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2019
1
Accounting policies
(Continued)
Page 4
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Trade debtors are fully provided for when the debtor pasts 90 days outstanding.
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
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2
Debtors
2019
2018
as restated
Amounts falling due within one year:
£
£
Trade debtors
4,377
623,189
Other debtors
708,101
219,859
712,478
843,048
Pay Later Financial Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2019
Page 5
3
Creditors: amounts falling due within one year
2019
2018
as restated
£
£
Trade creditors
28,516
76,158
Other creditors
1,104,349
490,996
1,132,865
567,154
Fixed and floating charges over the company's assets exist as part of the loans sale agreement entered into with Honeycomb Finance Limited (HFL). At the balance sheet date a net amount of £469,339 is payable to H
F
L under this agreement and repayable within one year
.
Included in other creditors are convertible loan notes of £188,000 issued during the year. The loan notes
are unsecured with a fixed interest rate of 10% per annum. Loan notes are redeemable from 12 months
of the issue date.
4
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
-
500,000
5
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1 each
1
1
1
1
6
Related party transactions
Included within debtors is an amount of £
707,845
(201
8:
£195,694) owed by
Pay Later Group Limited, a company
under common ownership.
I
ncluded within creditors due in less than one year is an amount of £
488,229
(2018: £589
,
984) due
Pay Later Financial Services II Limited, a
company under common ownership.
7
Parent company
The ultimate controlling party is J Dykes by virtue of his shareholding.
Pay Later Financial Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2019
Page 6
8
Prior period adjustment
The prior year balances have been restated to reflect adjustments identified during the review of the year ending 30 June 2019.
Changes to the balance sheet
At 30 June 2018
As previously reported
Adjustment
As restated
£
£
£
Current assets
Debtors due within one year
766,678
76,370
843,048
Creditors due within one year
Creditors
(489,624)
(77,530)
(567,154)
Net assets
(314,183)
(1,160)
(315,343)
Capital and reserves
Profit and loss
(113,268)
(1,160)
(114,428)
Changes to the profit and loss account
Period ended 30 June 2018
As previously reported
Adjustment
As restated
£
£
£
Cost of sales
(150,950)
(1,160)
(152,110)
Loss for the financial period
(33,627)
(1,160)
(34,787)