Company Registration No. 10790251 (England and Wales)
SNAP FINANCE UK (GROUP) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
SNAP FINANCE UK (GROUP) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
3 - 10
SNAP FINANCE UK (GROUP) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 1 -
Unaudited
2019
2018
as restated
Notes
£
£
£
£
Fixed assets
Investments
5
17,035,518
6,151,615
Current assets
Debtors
6
100
100
Creditors: amounts falling due within one year
7
(17,661,279)
(6,789,839)
Net current liabilities
(17,661,179)
(6,789,739)
Total assets less current liabilities
(625,661)
(638,124)
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
(625,761)
(638,224)
Total equity
(625,661)
(638,124)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 May 2021 and are signed on its behalf by:
A A Smith
Director
Company Registration No. 10790251
SNAP FINANCE UK (GROUP) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2018:
Balance at 1 January 2018
100
(81,162)
(81,062)
Period ended 31 December 2018:
Loss and total comprehensive loss for the year as restated
-
(557,062)
(557,062)
Balance at 31 December 2018
100
(638,224)
(638,124)
Period ended 31 December 2019:
Loss and total comprehensive loss for the year
-
12,463
12,463
Balance at 31 December 2019
100
(625,761)
(625,661)
SNAP FINANCE UK (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
1
Accounting policies
Company information
Snap Finance UK (Group) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Challenge House Sherwood Drive, Bletchley, Milton Keynes, England, MK3 6DP.
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.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
During the year the company made a profit of £12,463 and at the reporting date had net liabilities of £625,661
true
.
The parent company, Snap Finance Holdings LLC, has undertaken to provide all the necessary support to ensure that the Company is able to meet its liabilities as and when they fall due for a period of 12 months from the date of approval of the balance sheet.
As a consequence, the directors believe that the Company is well placed to manage its business risks successfully despite the current uncertain economic outlook
resulting from the Covid-19 outbreak.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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:
Software
4 years straight line
1.4
Fixed asset investments
Interests in subsidiaries
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
the income statement
.
SNAP FINANCE UK (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
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.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
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.
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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through the statement of income
, 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 the statement of income.
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 the statement of income.
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.
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.
SNAP FINANCE UK (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans
and
loans from
fellow group companies, 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 transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
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.
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.
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.
1.8
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.
1.9
Interest income is recognised in the statement of comprehensive income using the effective interest method.
SNAP FINANCE UK (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
1.10
As explained in note 13, during the year, the company identified transactions which were incorrectly accounted under FRS 102. These specifically related to the investment in subsidiary, amortisation of intangibles, share capital and prepayments. When adjusted for these, it resulted in a overall increase to the statement of income of £3,103,936. Thus the loss as previously reported of £3,660,998 is restated as £557,062. There was no tax impact of these adjustments due to the Company's accumulated tax losses.
Adjustments of £367,534 were identified to equity as at 1 January 2018 as previously reported of £448,596 which resulted in a restated balance of £81,062 as explained in note 13.
Loans to group undertakings were incorrectly classified as intangible assets and has been correctly allocated to loans to group undertakings within fixed asset investments. This has had no impact on the statement of comprehensive income for the prior year
The company identified that it had incorrectly accounted for prepayments of £126,482 for the year ended 31 December 2018 and a prior period adjustment has been made to expense these items within the statement of comprehensive income for the year ended 31 December 2018.
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.
Tax losses
Subject to HM Revenue and Customs approval, the company has estimated tax losses of £866,000 (2018: £879,000). A deferred tax asset has not been recognised in respect of these losses in accordance with FRS 102.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
3
3
SNAP FINANCE UK (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
4
Intangible fixed assets
Other
£
Cost
At 1 January 2019 and 31 December 2019
49,147
Amortisation and impairment
At 1 January 2019 and 31 December 2019
49,147
Carrying amount
At 31 December 2019
At 31 December 2018
5
Fixed asset investments
2019
2018
£
£
Shares in group undertakings
71,000
71,000
Loans to group undertakings
16,964,518
6,080,615
17,035,518
6,151,615
As at 31 December 2019 £16,964,518 was due from Snap Finance Limited. The Company has received confirmation from the ultimate parent company, Snap Finance Holdings LLC, that in the event of a default it will provide the necessary funding to meet the repayment in full. As a result the directors do not consider the loan to be impaired.
In the event an impairment was required this would amount to £9,309,414.
Movements in fixed asset investments
Shares in group undertakings
Loans to group undertakings
Total
£
£
£
Cost or valuation
At 1 January 2019
71,000
6,080,615
6,151,615
Additions
-
10,883,903
10,883,903
At 31 December 2019
71,000
16,964,518
17,035,518
Carrying amount
At 31 December 2019
71,000
16,964,518
17,035,518
At 31 December 2018
71,000
6,080,615
6,151,615
SNAP FINANCE UK (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
6
Debtors
2019
2018
£
£
Amounts falling due within one year:
Other debtors
100
100
7
Creditors: amounts falling due within one year
2019
2018
£
£
Amounts owed to group companies
17,241,441
6,374,440
Other creditors
419,838
415,399
17,661,279
6,789,839
8
Called up share capital
2019
2018
2019
2018
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
9,000
9,000
90
90
B Ordinary shares of 1p each
1,000
1,000
10
10
10,000
10,000
100
100
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Warren Baker FCA.
The auditor was Wilson Wright LLP.
SNAP FINANCE UK (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
10
Related party transactions
Included within other creditors at the balance sheet date, is an amount owed of £419,839 (2018 - £415,399) to M L Hawkins, a director of the company, in respect of a loan. Interest charged in the year was £19,290 (2018 - £18,834).
At the balance sheet date, the company was owed £16,964,518 (2018 - £6,080,615) by Snap Finance Limited in respect of a loan. Interest earned in the year was £500,473 (2018 - £125,325).
At the balance sheet date, the company owed £17,241,441 (2018 - £6,374,440) to Snap Finance Holding LLC in respect of a loan. Interest charged in the year was £522,456 (2018 - £131,583).
11
Parent company
The parent company of Snap Finance UK (Group) Limited is Snap US Holdings LLC whose registered office is 1193 West 2400 South Salt Lake City, UT 84119, United States of America.
SNAP FINANCE UK (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
12
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2018
2018
Notes
£
£
Adjustments to prior year
Prior period adjustment to investment
a
359,243
3,230,418
Prior period adjustment to amortisation
b
8,191
-
Prior period adjustment to share capital
c
100
-
Prior period adjustments to prepayment
d
-
(126,482)
Total adjustments
367,534
3,103,936
Loss for the year as previously reported
-
(3,660,998)
Equity as previously reported
(448,596)
-
Equity restated as at 1 January 2018
-
(81,062)
Equity as adjusted
(81,062)
(638,124)
a) Prior year adjustment to investment
An adjustment has been made to correctly recognise the investment in Snap Finance Limited at cost in accordance with FRS 102. The impact of this adjustment and the other adjustments explained within this note has resulted in an adjustment to opening reserves at 1 January 2018 of £359,243 and an adjustment of £3,230,418 in the year to 31 December 2018. Opening reserves are therefore restated at £81,062 (debit) as at 1 January 2018 and £638,124 (debit) as at 31 December 2018.
b) Prior period adjustment to amortisation
An adjustment in respect of the amortisation charge has been made to correct the balance carried forward at 1 January 2018.
c) Prior period adjustment to share capital
An adjustment has been made to correctly recognise the share capital for the year ended 31 December 2018. This had a subsequent effect on the equity.
d) Prior period adjustments to prepayment
An adjustment in respect of legal fees which was incorrectly treated as a prepayment in the prior year.
2019-12-31
2019-01-01
false
26 May 2021
CCH Software
CCH Accounts Production 2021.100
No description of principal activity
This audit opinion is unqualified
M A Brunault
M L Hawkins
A A Smith
10790251
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