Registration number:
Anorak Technologies Limited
for the Year Ended 31 December 2022
Anorak Technologies Limited
Contents
Company Information |
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Independent Auditor's Report |
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Balance Sheet |
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Notes to the Financial Statements |
Anorak Technologies Limited
Company Information
Directors |
David Vanek Joshua Sargent |
Registered office |
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Independent Auditors |
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Anorak Technologies Limited
Independent Auditor's Report to the Members of Anorak Technologies Limited
Opinion
We have audited the financial statements of Anorak Technologies Limited (the 'company') for the year ended 31 December 2022, which comprise the Balance Sheet, and , 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 Section 1A '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 2022 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 auditor 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.
Emphasis of matter - financial statements prepared on a basis other than going concern
We draw attention to Note 2 to the financial statements which explains that the directors intend to liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 2. Our opinion is not modified in this respect of this matter.
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
Anorak Technologies Limited
Independent Auditor's Report to the Members of Anorak Technologies Limited
• |
the information given in the for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the .
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 prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. |
• |
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the and from the requirement to prepare a Strategic Report. |
Responsibilities of directors
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.
Auditor 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.
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:
Anorak Technologies Limited
Independent Auditor's Report to the Members of Anorak Technologies Limited
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements;
• we obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the laws and regulations applicable to the company through discussions with directors and other management, and from our cumulative audit and commercial knowledge and experience of the company and the insurance sector;
• we focused on specific laws and regulations which we considered may have a direct material effect on the determination of material amounts and disclosures the financial statements or the operations of the company, including the Companies Act 2006, The Equality Act 2010, General Data Protection Rules (GDPR), taxation legislation, anti-bribery and employment law. We also considered and identified laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty, including the Bribery Act and the Data Protection Act 2018;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal and regulatory correspondence; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
Anorak Technologies Limited
Independent Auditor's Report to the Members of Anorak Technologies Limited
We are also required to perform specific procedures to respond to the risk of management bias and override of controls. To address this, we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the business rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
• agreeing financial statement to disclosures underlying supporting documentation;
• enquiring of management as to actual and potential litigation and claims;
• reviewing correspondence with HMRC and analysing legal costs to ascertain if there have been instances of non-compliance with laws and regulations; and
• reviewing correspondence with the FCA and enquiring with management to ascertain if there have been instances of non-compliance with laws and regulations.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.
Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 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.
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For and on behalf of
Salatin House
19 Cedar Road
Surrey
SM2 5DA
Anorak Technologies Limited
(Registration number: 10854345)
Balance Sheet as at 31 December 2022
Note |
2022 |
2021 |
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Current assets |
|||
Receivables |
|
|
|
Cash at bank and in hand |
|
|
|
Assets reclassified as held for sale |
15,587 |
10,916 |
|
|
|
||
Payables: Amounts falling due within one year |
( |
( |
|
Total assets less current liabilities |
( |
|
|
Payables: Amounts falling due after more than one year |
- |
( |
|
Provisions for liabilities |
( |
( |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
15,102,822 |
10,738,822 |
|
Retained earnings |
(16,127,028) |
(13,017,992) |
|
Shareholders' deficit |
(1,024,206) |
(2,279,170) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
......................................... |
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
General information |
Anorak Technologies Limited (the 'company') is a private company limited by share capital, incorporated in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company's operations and its principal activities are set out in the directors 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.
Going concern
Following the acquisition of the company and subsequent change of control, it is the intention of the new owners to transfer the trade and assets of Anorak Technologies Limited into Candid Insurance Services Limited. The anorak brand and products will be retained within the offering of Candid Insurance Services Limited.
Once the transfer of trade and assets is complete and once all remaining balances have been settled, it is the intention of the directors that Anorak Technologies Limited will be liquidated.
The financial statements have therefore been prepared on a basis other than going concern.
The consequences of this approach are that:
a) the company's non-current assets amounting to £18,080 as at 31 December 2022 are classified
as held for sale as their carrying amounts will be recovered post year end;
b) all non-current assets are measured at the lower of the carrying amount and fair value less costs to
sell;
c) the company’s loans due to group undertaking amounting to £692,849 as at 31 December 2022 are classified as current liabilities as the outstanding loan balances will be repayable within one year from the date of approval of these financial statements.
No other adjustments were required as a result of preparing the accounts on a basis other than as a going concern.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
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 functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).
Key sources of estimation uncertainty and Judgements
There were no key sources of estimation uncertainties made by the directors in the process of applying the company’s accounting policies and that may have had a significant effect on the amounts recognised in the financial statements. |
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities and is net of Value Added Tax.
Revenue can be split into the following two streams:
Regulated revenue:
Regulated revenue represents fees and commissions receivable for policy sales, net of commission clawbacks. Commission income is recognised when a policy goes on risk.
Non-regulated revenue:
Non-regulated revenue represents the fees receivable for the provision of its 'service-as-a-software' activity. The company recognises revenue when an agreement exists, fees are fixed and determinable, delivery of the service has occured and collectibility is deemed probable.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Tax
The tax expense for the period comprises 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.
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the year end.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold Improvements |
50% Straight line method |
Furniture, Fittings & Equipment |
50% Straight line method |
Cash and cash equivalents
Cash and cash equivalents comprise cash on at bank and is subject to an insignificant risk of change in value.
Receivables
Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of receivable is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Payables
Payables 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.
Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date 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.
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
The company contributes into defined contribution pension schemes for the benefit of its employees. The assets of the scheme are held separately from those of the company. Contributions are recognised in the income statement in the period in which they become payable.
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Financial instruments
Classification
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or cash consolidation expected to be paid or received.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Receivables |
2022 |
2021 |
|
Receivables |
|
|
Other receivables |
|
|
Prepayments |
4,613 |
43,352 |
|
|
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Fixed assets reclassified as held for sale |
Leasehold improvements |
Furniture, fittings and equipment |
Total |
|
Cost |
|||
At 1 January 2022 |
49,470 |
92,430 |
141,900 |
Additions |
13,139 |
5,098 |
18,237 |
At 31 December 2022 |
62,609 |
97,528 |
160,137 |
Depreciation |
|||
At 1 January 2022 |
49,470 |
81,514 |
130,984 |
Charge for the year |
3,128 |
10,437 |
13,565 |
At 31 December 2022 |
52,598 |
91,951 |
144,549 |
Carrying amount |
|||
At 31 December 2022 |
10,010 |
5,577 |
15,587 |
At 31 December 2021 |
- |
10,916 |
10,916 |
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Payables |
2022 |
2021 |
|
Due within one year |
||
Trade Payables |
|
|
Amounts due to group undertakings |
|
- |
Taxation and social security |
|
|
Accruals and deferred income |
|
|
|
|
The amounts owed to group undertaking disclosed as falling within one year is unsecured, not repayable on demand unless in the event of a default of payment and is interest bearing.
Note |
2022 |
2021 |
|
Due after one year |
|||
Amounts due to group undertaking |
- |
|
Provisions for liabilities |
Clawback provision |
|
At 1 January 2022 |
|
Additional provisions |
( |
At 31 December 2022 |
|
|
The company does not recognise 20% of its commission revenue in anticipation of policies being cancelled. This proportion of revenue is kept in the balance sheet as a clawback provision until it can be either recognised upon receipt of the revenue or written off against accrued income.
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
15,102,822 |
|
10,738,822 |
New Shares alloted
During the period 4,364,000 Ordinary shares of £1 each having an aggregate nominal value of £4,364,000 were allotted for an aggregate consideration of £4,364,000.
Reserves |
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
|
The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administed fund. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
Related party transactions |
As at 31st December 2022, £705,747 is owed to Anorak Technologies Group Ltd. (2021 - £2,356,647)
Anorak Technologies Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is
Events after the financial period |
|