Registration number:
Investengine (UK) Limited
for the Year Ended 31 March 2021
Investengine (UK) Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Investengine (UK) Limited
Company Information
Directors |
Simon Ramsey Strasser Crookall Andrey Dobrynin Aleksandr Rupin Oliver Lee Andrew Rodwell |
Registered office |
|
Auditors |
|
Investengine (UK) Limited
Strategic Report for the Year Ended 31 March 2021
The directors present their strategic report for the year ended 31 March 2021.
Principal activity
Investengine (UK) Limited delivers smart-designed portfolios expertly managed to put our clients' money to work through its online platform.
We aim to understand our clients' requirements including the level of investment and risks that they are comfortable with. We then carefully select a globally diversified portfolio consisting of exchange-traded funds to build wealth over the long term whilst avoiding the risk of investing too much in a specific company, industry or country.
Investengine continuously monitors our clients' portfolios rebalancing where necessary. We do all of this for a competitive low fee meaning more of our clients' wealth is invested expertly and professionally.
Fair review of the business
Investengine (UK) Limited began trading in April 2019. The results for the year and the financial position at the year end were considered satisfactory by the directors who expect growth in the foreseeable future. The firm continues to mange its cost base whilst driving the business forward.
The firm has expanded its offering with the inclusion of Income portfolios to its client base of Individuals and Businesses via its Individual Savings and General Investment Accounts.
With regard to the financial performance and position for the year the administrative expenses have increased in large part to increases in staff costs and also in computer and website expenses. The balance sheet remains strong including significant cash at bank following a successful additional funding round with figures as set out in the balance sheet.
Key Performance Indicators
Investengine (UK) Limited continues to improve its financial forecasts and key performance indicators. For the year ended 31 March 2021 the firm has exceeded the number of retail clients onboarded in the previous year by 128% of target.
The Assets Under Management were lower than expected coming in at 37% of the forecast however the firm continues to see a growing client base and increased client deposits to 95% of the target set for the year.
Investengine (UK) Limited
Strategic Report for the Year Ended 31 March 2021
Principal risks and uncertainties
The firm faces a number of business risks and uncertainties due to the current and future trading conditions all of which have been captured in the firm's ICAAP.
A full review of the firm's risk has been undertaken noting Credit and Counterparty Risk, Liquidity Risk and Operational Risk as the main risks that the firm faces. In view of this the directors are paying careful attention to both market conditions and liquidity of the firm.
Further information can be located in the annual Pillar 3 disclosure on the website:
https://investengine.com/relevant-regulatory/
Statutory duties in accordance with s172 (1) Companies Act 2006
The main decision made by the Board of directors during the year was to offer the discretionary portfolio management services to Businesses with the inclusion of Income portfolios for all clients.
The Board of directors acknowledge that they will continue to act in good faith promoting the success of the firm by:
- Discussing and agreeing the likely consequences of any decision that would have an impact on the firm in the long term
- Taking into account the interests of the firm's employees, clients and suppliers
- The impact of the firm's operations on the community and the environment
The directors agree to maintain high standards of business conduct and to treat all members fairly.
The firm employs 6 members of staff and is contracted to 4 consultants. No factors have been identified which could affect employees' interests.
Approved by the
.........................................
Director
.........................................
Director
Investengine (UK) Limited
Directors' Report for the Year Ended 31 March 2021
The directors present their report and the financial statements for the year ended 31 March 2021.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Financial instruments
See note 20 to the accounts.
Business development
In addition to the Growth portfolios offered to clients the firm has also introduced Income portfolios which were launched in May 2020. The Income portfolios are designed to provide our clients with a higher income than cash savings along with the potential for some capital growth all whilst aiming to limit capital risk.
The firm continues to work on new financial products and innovative technology in order to enhance its offering to new and existing clients.
Technology Developments
Innovation and automation remain a key priority for the firm. The main focus during the year included the introduction of Business accounts and a faster client onboarding experience with the launch of Income portfolios which went live at the beginning of the following financial year.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to the members or 28 days after the latest date prescribed for filing the accounts with the Registrar, whichever is earlier.
Results and dividends
The loss for the year, after taxation, amounted to £2,075,121 (2020 - £1,225,346).
The company had no distributable reserves from which to declare a dividend.
Investengine (UK) Limited
Directors' Report for the Year Ended 31 March 2021
Approved by the
.........................................
Director
.........................................
Director
Investengine (UK) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The 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.
Investengine (UK) Limited
Independent Auditors' Report to the Members of Investengine (UK) Limited
Opinion
We have audited the financial statements of Investengine (UK) Limited (the 'Company') for the year ended 31 March 2021, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the Company's affairs as at 31 March 2021 and of its loss for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' 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.
Investengine (UK) Limited
Independent Auditors' Report to the Members of Investengine (UK) Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors’ remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit; or |
• |
the directors were not entitled to take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic Report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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.
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.
Investengine (UK) Limited
Independent Auditors' Report to the Members of Investengine (UK) Limited
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including The Companies Act, Health and Safety regulations and Client Money regulations issued by the FCA. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
• We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary. We corroborated our inquiries through our review of board minutes.
• The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
- Challenging assumptions and judgements made by management in its significant accounting estimates; and
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
• As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
- Lack of segregation of duties in the accounts department.
- Posting of unusual journals.
- Management of Client Money accounts.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Investengine (UK) Limited
Independent Auditors' Report to the Members of Investengine (UK) Limited
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
7 - 12 Tavistock Square
WC14 9LT
Investengine (UK) Limited
Profit and Loss Account for the Year Ended 31 March 2021
Note |
2021 |
2020 |
|
Turnover |
|
|
|
Cost of sales |
( |
- |
|
Gross (loss)/profit |
( |
|
|
Administrative expenses |
( |
( |
|
Operating loss |
( |
( |
|
Other interest receivable and similar income |
|
|
|
18 |
49 |
||
Loss before tax |
( |
( |
|
Taxation |
|
|
|
Loss for the financial year |
( |
( |
Investengine (UK) Limited
Statement of Comprehensive Income for the Year Ended 31 March 2021
2021 |
2020 |
|
Loss for the year |
( |
( |
Total comprehensive income for the year |
( |
( |
Investengine (UK) Limited
(Registration number: 10438231)
Balance Sheet as at 31 March 2021
Note |
2021 |
2020 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
6,750,000 |
4,750,000 |
|
Profit and loss account |
(4,126,726) |
(2,051,605) |
|
Shareholders' funds |
2,623,274 |
2,698,395 |
Approved and authorised by the
.........................................
Director
.........................................
Director
Investengine (UK) Limited
Statement of Changes in Equity for the Year Ended 31 March 2021
Share capital |
Profit and loss account |
Total |
|
At 1 April 2020 |
|
( |
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
New share capital subscribed |
|
- |
|
At 31 March 2021 |
|
( |
|
Share capital |
Profit and loss account |
Total |
|
At 1 April 2019 |
|
( |
|
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
New share capital subscribed |
|
- |
|
At 31 March 2020 |
|
( |
|
Investengine (UK) Limited
Statement of Cash Flows for the Year Ended 31 March 2021
Note |
2021 |
2020 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Research and development tax credit |
( |
( |
|
( |
( |
||
Working capital adjustments |
|||
Decrease/(increase) in trade debtors |
|
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
( |
( |
|
Research and development tax credit |
|
|
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Acquisition of intangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Proceeds from issue of ordinary shares, net of issue costs |
|
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
2,231,494 |
2,458,249 |
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
General information |
The company is a private company limited by share capital, incorporated in the United Kingdom.
The address of its registered office is:
England
The principal place of business is:
Office 327
The Metal Box Factory
30 Great Guildford Street
London
SE1 0HS
The Principal activity of the firm can be found in the Strategic report on page 2.
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
The financial statements are presented in Pounds Sterling, which is also the functional currency of the Company.
Rounding of amounts shown in the financial statements is to the nearest Pound.
The financial statements present information about the company as a single entity.
Consolidated financial statements are not prepared as the wholly owned subsidiary is dormant and immaterial.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see policy note regarding judgements and estimation uncertainty).
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Revenue recognition
Turnover comprises the fair value of the consideration received for the provision of discretionary management services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, goodwill payments, rebates and discounts.
The discretionary management fee is accrued daily however the company recognises revenue when the amount of discretionary management fees can be reliably measured and at the end of each calendar month.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Furniture, fittings and equipment |
25% Reducing balance method |
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives as follows:
Leased software: over the period of the lease
Internally generated enhancements to leased software: over the period of the lease
These amounts are referred to in the intangible assets note as "Website and trading platform".
Amortisation is included in 'administrative expenses' in the profit and loss account.
Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.
The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.
Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Company are recognised as intangible assets when the following criteria are met:
• it is technically feasible to complete the software so that it will be available for use;
• management intends to complete the software and use or sell it;
• there is an ability to use or sell the software;
• it can be demonstrated how the software will generate probable future economic benefits;
• adequate technical, financial and other resources to complete the development and to use or sell the software are available; and
• the expenditure attributable to the software during its development can be reliably measured.
Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.
Investments
Investment in the subsidiary company is held at cost less accumulated impairment losses.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Operating leases
Rentals in respect of operating leases are charged to the profit and loss account on a straight-line basis over the term of the lease.
Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like other debtors and creditors. Financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instruments.
Debtors and creditors
Basic financial assets and liabilities, including other debtors, trade and other creditors, are initially recognised at transaction price, unless the arrangements constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets and liabilities are subsequently carried at amortised cost using the effective interest method, less any impairment.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Going concern
The directors consider that there are no material uncertainties about the company's ability to continue as a going concern. In forming their opinion, the directors have considered a period of one year from the date of signing the financial statements. In view of continuing losses, further rounds of funding will be sought as and when required.
Judgements in applying accounting policies and key sources of estimation uncertainty
There are no complex accounting estimates or key sources of estimation uncertainty within the financial statements that are considered to be significant.
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
2021 |
2020 |
|
Sales |
|
|
Operating loss |
Arrived at after charging/(crediting)
2021 |
2020 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease rental |
|
|
Other interest receivable and similar income |
2021 |
2020 |
|
Interest income on bank deposits |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2021 |
2020 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
11,051 |
4,436 |
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2021 |
2020 |
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2021 |
2020 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
202,626 |
111,999 |
In respect of the highest paid director:
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
2021 |
2020 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
Auditors' remuneration |
2021 |
2020 |
|
Audit of the financial statements |
|
|
Taxation |
Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 31 March 2021.
Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:
2021 |
2020 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate (19%) |
( |
( |
Accelerated depreciation |
( |
( |
Research and development tax credit |
( |
( |
Increase in potential UK tax losses |
|
|
Total tax credit |
( |
( |
Deferred tax
Deferred tax assets and liabilities
The Company has trading losses of £4,109,966 (2020 - £1,979,472) available to carry forward against future trading profits.
The Company has a contingent deferred tax asset amounting to approximately £780,894 (2020 - £376,100) which has not been recognised on the basis that there are not likely to be sufficient profits for the foreseeable future to allow the losses to be recouped.
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Intangible assets |
Website and trading platform |
Total |
|
Cost or valuation |
||
At 1 April 2020 |
|
|
Additions acquired separately |
|
|
At 31 March 2021 |
|
|
Amortisation |
||
At 1 April 2020 |
|
|
Amortisation charge |
|
|
At 31 March 2021 |
|
|
Carrying amount |
||
At 31 March 2021 |
|
|
At 31 March 2020 |
|
|
Tangible assets |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 April 2020 |
|
|
Additions |
|
|
At 31 March 2021 |
|
|
Depreciation |
||
At 1 April 2020 |
|
|
Charge for the year |
|
|
At 31 March 2021 |
|
|
Carrying amount |
||
At 31 March 2021 |
|
|
At 31 March 2020 |
|
|
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Investments |
2021 |
2020 |
|
Investments in subsidiary |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2020 |
|
Provision |
|
Carrying amount |
|
At 31 March 2021 |
|
At 31 March 2020 |
|
The company has a wholly owned subsidiary, Investengine Nominees Ltd, a company incorporated in England & Wales. Investengine Nominees Ltd year end is 31 January and the company is dormant. The aggregate amount of its capital and reserves as at 31 January 2021 is £1.
The address of Investengine Nominees Ltd registered office is:
3rd Floor
Lawford House
Albert Place
London
N3 1QA
United Kingdom
Debtors |
2021 |
2020 |
|
Other debtors |
|
|
Prepayments |
|
|
Accrued income |
- |
|
Total current trade and other debtors |
|
|
Cash and cash equivalents |
2021 |
2020 |
|
Cash at bank |
|
|
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Creditors |
Note |
2021 |
2020 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Accrued expenses |
|
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
|
|
6,750,000 |
|
6,750,000 |
New shares allotted
During the year 2,000,000 |
Operating lease commitments |
Rentals in respect of operating leases are charged to the profit and loss account on a straight line basis over the term of the lease.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
Operating leases which expire |
2021 |
2020 |
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Investengine (UK) Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Analysis of changes in net debt |
At 1 April 2020 |
Operating and investing cash flows |
Issue of ordinary |
At 31 March 2021 |
|
Cash and cash equivalents |
||||
Cash at bank |
2,458,249 |
(2,226,755) |
2,000,000 |
2,231,494 |
|
( |
|
|
|
Financial instruments |
The company's financial instruments comprise cash and cash equivalents and various items such as other debtors, trade and other creditors, that arise directly from operations.
Financial assets measured at fair value through profit or loss comprise fixed asset investments of £1.
The main purpose of these financial instruments is to finance the company's operations.
The board regularly reviews and agrees policies for managing the level of risk arising from the company's financial instruments. This is summarised below:
Liquidity risk
Liquidity risk is the risk the company will not be able to meet its financial obligations as they fall due. The company's policy throughout the period has been to ensure that it has adequate liquidity to meet its liabilities when due, by careful management of working capital.
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The ultimate controlling party is Mr S Crookall by virtue of his majority shareholding in
Their registered office address is:
Douglas
Isle of Man
Related party transactions |
During the year ended March 2021, fees amounting to £565,749 (2020 - £310,038) were charged by a related company, controlled by two of the directors of Investengine (UK) Limited.