The Directors of Bilderlings Pay Limited (hereinafter – “the Company'', “we”, or “Bilderlings’’) hereby present the strategic report for the year ended 31 December 2022.
The directors provide information regarding the Company's decisions and strategies during the financial year in the ‘Fair review of the business’ section of this report.
Speaking of the results of 2022, we can conclude that we, as the Board, made a contribution to the implementation of the mission and strategy of the company by providing more and more affordable digital financial services to an ever-wider range of businesses and society. As before, our field of vision was a sustainable development of Bilderlings to ensure that the Company continued to maintain strong performance, profitability, and liquidity indicators, offering cutting-edge Fintech solutions, at the same time keeping an eye on the potential risks and opportunities of this quickly developing market. We can state with assurance that Bilderlings is a highly developed digital ecosystem offering customers a wide range of Bilderlings-branded financial and non-financial services.
Last year, despite the continued destabilising effects of the global COVID pandemic and social, economic, and political instability, Bilderlings was successful in working its way through and achieving satisfactory performance results, further strengthening the corporate governance framework and creating the robust safeguarding framework at times of global economic and political turbulence that became the major factors that contributed to the Company’s overall reliability and stability. The financial performance of the Company in 2022 was the result of both carefully weighted business decisions and the work of the professional management and sales teams focused on serving our customers coupled with reliable IT solutions and fine-tuned business intuition.
Being aware of the rapidly changing business environment, Bilderlings strives to hire professionals that are capable of adapting to the ever-changing background and who are flexible and eager to learn. Without the dedicated staff, Bilderlings would not be able to achieve sustainable development and strategic objectives.
Bilderlings regularly revises its business model to keep it flexible and resilient to external impact.
We strongly believe that our management team and highly skilled professionals leading various units within the Company will continue to demonstrate the highest performance in the coming year, whatever the volatile global economy may pose challenges.
Changes in global economic and market conditions, as well as geopolitical events, are determining factors in the Company's business activities and financial results. The past year has been marked by the war in Ukraine, partial weakening of globalisation, significant pressure on households and businesses due to rising costs, and as COVID continues to pose a severe threat in many parts of the world.
The time of stable economic growth, low inflation, and predictable monetary policy was interrupted in 2022. Central banks pursued a policy of raising interest rates, reduced quantitative easing, and some of them demonstrated quantitative tightening. Global domestic product (GDP) growth in 2022 was significantly slowed down by inflationary pressures caused by various factors, such as the severe impact of the COVID pandemic on supply chains, pressure on labour costs, and rising energy and food prices exacerbated by the conflict in Ukraine and imposed sanctions. These developments have worsened the cost of living in most countries of the world, particularly in Europe and the United Kingdom (UK).
Despite the above mentioned, Bilderlings remains financially and operationally resilient amid the challenging macroeconomic conditions, particularly in the face of rising interest rates, declining GDP, the rising cost of living, rising energy costs, and high inflation in general.
Notwithstanding the slowdown in the global economy, Bilderlings ended the year with a profit and solid capital adequacy, reflecting the good performance of the Company’s business services.
Fair Review of the Business
Bilderlings’ mission is to help clients achieve sustainable economic growth and better financial well-being, focusing on their actual needs, inclusivity, convenience, and at an affordable price. Bilderlings provides cross-border money transfer services and debit cards and orchestrates various third-party services for personal and business clients in the UK and internationally. The Company infrastructure comprises multiple products and services, including Bilderlings’ Account for business and individual customers being able to send money abroad and meet their multi-currency banking needs; Bilderlings Platform, which provides more efficient and easy access to third-party financial and non-financial services, including online currency exchange services, deposits, loans, investments, and start-up incorporation; and Bilderlings for Fintech that allows electronic money, payment institutions, banks, and other digital financial institutions to streamline their customer experience, introduce international banking features by integrating Bilderlings fintech platform features into their online banking and mobile applications.
Bilderlings continues to follow its strategy of providing Bilderlings' customers with technologically advanced services at affordable prices. One of the major innovations is the extensive use of artificial intelligence (AI), both in advising customers even before they enter the business relationship and as well as in the transactions monitoring process. In 2022, for the first time, we have integrated chatbots into the sales and customer advisory process. The widespread use of artificial intelligence makes it possible to scale the business, as well as to decrease the company's operational expenses significantly to make its services more affordable for the mass market.
The implementation of online biometrics for all new customers has been a significant step for business and risk control. The biometric system implementation makes it possible to ensure that the account opening is in the best applicant’s interests. Automation of the process has increased Bilderlings' ability to open new accounts for thousands of customers per month.
Launched in 2022, the Bilderlings platform offering third-party financial and non-financial services has proven its viability: the first transactions with customers have been made. In 2023, the range of services offered on the platform is expanding, and conditions on existing products are improving. For example, over 2022, the deposit rate in EUR has risen by an average of 72%.
We believe our tech-enabled solutions will enhance the trust, efficiency, speed, and inclusivity of financial services. We envisage Bilderlings' future is not just about an alternative value proposition in finance. We are a technology company with the purpose of designing a digital ecosystem spanning multiple industries, providing a mix of financial and non-financial products, an excellent and more streamlined consumer experience, and promoting new ways to collaborate, connect and innovate for personal benefit and the public good.
In 2022, Bilderlings continued advancement in developing in-house a full-scale digital payment platform architecture, including multi-currency accounts, debit cards, Single Euro Payments Area Credit Transfer (SEPA SCT)/SEPA Instant and Society for Worldwide Interbank Financial Telecommunication (SWIFT) channels, virtual payment cards, back-office infrastructure and automation of internal processes, automated online onboarding and anti-money laundering (AML) systems and access to the banking products and services of third-party through integration with ecosystem partners. In particular, the Company has introduced the automated monitoring of transactions, anti-fraud solutions, automated online onboarding, deposits, and investments, and offering other features to our customers. Additionally, Bilderlings also progressed with plans regarding customer support, compliance, and risk infrastructure and expanding into new markets with existing products and services.
The Bilderlings’ app, available in AppStore and GooglePlay, continues to develop by adding new features, allowing users more convenience and direct access to its products and services in one interaction, anytime and anywhere. In addition, the Company continued adding new features to the card product range, in particular, offering virtual cards and pin change, and launched Apple Pay and Google Pay, offering cardholders up-to-date technological solutions. Biometrics authorisation of card payments was introduced in 2022 for convenience and secure cards online transactions. Also, new functionality was introduced for customer convenience - account funding by third-party issued cards.
In 2022, Bilderlings partnered with Mastercard's Priceless Planet CoalitionTM on a mission to fight climate change by restoring trees worldwide. The campaign was carried on together with the global environmental organisations - Conservation International and World Resources Institute. As an environmentally responsible company, Bilderlings strives to impact the future of our planet, and this project was the first in the Company's history to bring forward social responsibility on a global scale. In addition, we offered an accessible and engaging way to make a meaningful impact in the world - we helped to plant trees by attracting new clients and increasing card usage of the existing ones.
Developing further its international payment infrastructure, in March 2022, Bilderlings became a member of the SWIFT international payment system and concluded the first agreement with one of the European correspondent banks. The SWIFT system facilitates more efficient, prompt, and secure execution of payments of customers and correspondent banks. In the second quarter of 2022, direct SWIFT payments were available for Bilderlings customers. Increasing the payment capabilities available to our clients has been a focus during 2022, as well as seeking new correspondent and safeguarding banking partners. Attendance at the SIBOS and Fintech Connect conferences has seen an increase in potential payment and banking partners, and negotiations were productive with a number of important partners.
Bilderlings' strategic plans for 2023 and future periods include further investment and development of a truly digital, affordable, convenient, secure, and inclusive global Fintech ecosystem, which consists of the following:
Developing an AI-based Fintech platform;
Introducing more affordable, inclusive, value-added, and rewarding basic and premium pricing plans;
Developing, introducing, and integrating open banking and the most popular payment solutions in the UK and internationally
Developing the core product offering to business and individual customers and expanding Bilderlings for Fintech services;
Developing the digital Fintech platform and, in collaboration with partners, introducing new financial and non-financial products and services such as deposits, loans for business, investments, etc.;
Further investment in the compliance and risk infrastructure and customer support.
Developing modern tech solutions to automate and speed up business processes (for example, user geolocation);
Increasing social responsibility and participation in charity projects (supporting the environment and vulnerable sections of society);
Improving personalised experiences (personalised product recommendations, customised campaigns, and personalized service interactions for customers or customers groups);
Financial Performance and Key Performance Indicators (KPIs)
Despite the harsh global economic and market conditions, Bilderlings continued to strengthen its profitability and financial stability, generating revenue in 2022 €10,640,834 (2021: €10,570,499) and a net profit of €2,569,330 (2021: €2,581,177).
The Company's capital target ensures that the capital available is sufficient to support the strategy set out in the business plan and to ensure that the capital adequacy meets the regulatory requirement, including during severe economic downturns. The Company has fully complied with these requirements, holding a total equity of €8,521,992 at the end of 2022 (2021: €5,952,662). In addition, to increase the Company’s capital resources even more, the shareholders plan to reinvest 50% of the profit for 2022 into the new shares, increasing the share capital to €7,232,327 (2022: €5,952,662; 2021: €4,544,592).
Further to our focus on making our services more inclusive and affordable, such as the introduction of new lower pricing plans for domestic and individual clients, automated online onboarding, virtual payment cards, Apple Pay, and Google Pay, the structure of Bilderlings' client portfolio has shifted in favour of individuals, increasing its weight in the client portfolio up to 55% (2021: 39%). MasterCard users grew by 50% against 2021, creating a jump in card transactions by 82% and generating 14% of total revenue (2021: 9%). At the end of the year, the fluctuation in clients' money balances decreased, and those became more stable while retaining a significant volume of €137,922,313 (2021: €168,943,311).
To ensure its operational resilience and effectiveness of processes, Bilderlings has carried on with the enhancement of Information Technology (IT) systems and infrastructure, as well as qualified staff hiring, investing in operating expenses in 2022 €8,668,207 (2021: €7,462,542).
KPIs measure the Company's performance against key business objectives and are reported to shareholders. Bilderlings periodically reviews specific analytics to have visibility of progress against its mission, focusing on whether user experience has become more streamlined over time.
Principal Risks and Uncertainties
Bilderlings is exposed to various operational risks in the course of its business. The Company continues to invest in its operational infrastructure, technology, processes, and human resources to minimise potential losses due to inadequate or failed internal processes, technology systems, human error, and legal and cyber risks. Bilderlings carries out adequate operational risk management and focuses on effective risk assessment, implementing adequate controls, higher corporate accountability, encouraging senior management commitment, and recruiting and retaining the proper personnel to support its successful growth further.
Bilderlings issues electronic money to its clients, which must be controlled following its relevant regulator's safeguarding and regulatory capital requirements. The management team sets precise control over its commitment to the Safeguarding regulations to protect our clients from electronic-money risk. To ensure that all safeguarding processes were, and continue, to be in line with regulatory requirements and, as required by its regulators. Since 2020, Bilderlings annually has conducted an external audit of its safeguarding arrangements with excellent results.
Bilderlings collaborates with a growing number of ecosystem banking partners, outsourcing services providers, and other third parties across many lines of business. The Company mitigates this risk by undertaking initial due diligence of partners prior to onboarding them and then on an ongoing basis.
Bilderlings operates in an industry with a rigorous and fast-changing regulatory landscape and therefore is exposed to the potential risk of failure to comply with relevant regulations and laws, including corporate governance and anti-money laundering laws. Accordingly, any changes should be promptly incorporated into the Company's operating processes. To meet these challenges and ensure the secure functioning of Bilderlings, to ensure the optimum ratio of the risks Bilderlings accepts and the profitability of the transactions Bilderlings is involved in (the most favourable risk-profitability ratio), the risk management system has been implemented. Bilderlings exercises a systemic approach to risk management, having set the unified standards for identifying, assessing, and limiting the risks regarding applicable legislation and recommendations and expectations of the chief regulator of UK financial services firms and financial markets, i.e. the Financial Conduct Authority (FCA).
The Company handles a large number of transactions in clients’ funds and therefore is subject to potentially increased financial crime risk. Consequently, the Company faces the risk of non-compliance with Anti-Money Laundering/Combating, the Financing of Terrorism (AML/CFT), Proliferation guidance and legislation, and key sanctions lists. It is, in addition, subject to potential losses due to breaches of its Terms & Conditions of business by its clients. To mitigate this risk and make its activities more productive, Bilderlings has dedicated considerable effort and time to eliminating low-value AML/CFT activities, automating more of its processes, enhancing sanctions controls as a result of the war in Ukraine, implementing more advanced analytics, including detailed reviews of customer activities like screening all clients on a daily basis and ongoing monitoring of transactions. Bilderlings contracted an external audit company to conduct an audit of our AML, CTF and Sanctions systems and controls during the third quarter of 2022.
Cyber security threats that could potentially compromise company business services, infrastructure, customer data, and confidential company data remain the principal risk for Bilderlings. To effectively counter these threats, Bilderlings is focused on developing resilient technologies and processes, improving employee training, and regular external testing and audit activities. In addition, the management team is focused on identifying critical business activities and their risks, supporting systems and their vulnerabilities, analysing the new cybersecurity threats, and implementing robust mitigation controls and countermeasures to reduce the impact on business activities and protect data.
As a digital financial services provider, Bilderlings processes a massive amount of personal, confidential Company and employee data that imposes obligations on the Company to comply with personal data protection and privacy laws. Bilderlings has continued to invest in its technologies to prevent data security breaches and facilitate best practices in handling sensitive data by employees. To ensure we have secure and resilient business services supported by robust data protection frameworks and systems, Bilderlings periodically involves third parties specialising in IT Systems Security stress testing. In addition to the above, Bilderlings implemented a centralised Risk Management Framework tool for effective Risk Management. This will make Bilderlings Risk Management agile, proactive, flexible, and less vulnerable to unknown risks or threats, which is crucial for a successful business.
The main governance body of the Company is the Board of Directors, which is responsible for the prosperity of Bilderlings, leading the Company and supervising its business direction while seeking to develop a culture of good governance. The Company is a values-driven organisation. From the very beginning, Bilderlings has been committed to maintaining high legal, ethical, and moral standards, adhering to the principles of integrity, objectivity and honesty and wishes to be seen as opposed to fraud, bribery, and corruption in the way that it conducts its business. The Board is committed to high standards of business conduct and lawful, efficient, and fair business practices, encompassing its long-term strategy. This includes how the Company serves its clients and operates and behaves towards shareholders, partners, employees, and other stakeholders. In addition, the Board is responsible for developing and maintaining open and fair interaction and a transparent culture between Bilderlings and its stakeholders , considering it the key to the Company’s overall success.
Bilderlings informs its shareholders about its financial performance, holding meetings regularly to demonstrate how the long and short-term strategies of the Company are being met. In addition, Bilderlings' strategic plan and business model have been developed and periodically reviewed to have a long-term positive effect on the Company's success while considering the interests and concerns of its customers, partners, suppliers, employees, and the impact of operations on the environment and communities.
Bilderlings provides e-money, payment processing and digital payment services offering international and domestic bank transfers, debit cards, currency exchange and third-party financial services to corporate and individual clients. The primary purpose of Bilderlings' strategy is to help clients achieve sustainable economic growth, improve their financial well-being, and promote the accessibility of financial services globally. To achieve this goal, Bilderlings will continue to build its business with a high emphasis on real customer needs, focusing on a more extraordinary, more streamlined user experience, maintaining robust client relationships, and securing an empowering environment for its employees.
As a digital fintech platform, Bilderlings collaborates openly and fairly with many ecosystem partners and suppliers all over the world. The valuable partnership offering is extended to the ecosystem partners' products, services and channels and the partner and client journey.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2022.
The results for the year are set out on page 12.
There were dividends of €1,408,070 paid out during 2022.
The directors have proposed a dividend of €2,569,330 in 2023 based on 2022 financials.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, CBW Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Basis for 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 financial statements are 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit :
the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements ; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
As explained more fully in the directors' r esponsibilities s tatement, 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.
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 .
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of an electronic money institution. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including Payment Services Regulations 2017 (PSR 2017), Electronic Money Regulations 2011 (EMR 2011), Financial Services and Markets Act 2000, Financial Services Act 2012, Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The 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;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, 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 set out in note 2 were indicative of potential bias; and
investigated the 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 disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the FCA and the company’s legal advisors.
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: https://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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Bilderlings Pay Limited is a private company limited by shares incorporated in England and Wales . The registered office is 66 Prescot Street, London, E1 8NN. The business address is 13 Regent Street, St James's, London, United Kingdom, SW1Y 4LR.
The financial statements are prepared in euros , which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest €.
Bilderlings Pay Limited is a subsidiary of Bilderlings Holdings SIA and the results of Bilderlings Pay Limited are included in the consolidated financial statements of Bilderlings Holdings SIA which are available from Jekaba Street 2, Riga, LV-1050, Latvia.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss .
Investments in government bonds are remeasured at amortised cost through profit or loss at each reporting date until maturity.
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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss , except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
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, including creditors , 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
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.
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.
Intangible fixed assets are amortised based on their useful lives. The actual useful lives are based on judgements made by management.
Investments measured at fair value through profit or loss are revalued at year end using market values for such investments provided by the companies partner bank.
Fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Fixed assets are depreciated over their useful lives based on judgements made by management.
The average monthly number of persons (including directors) employed by the company during the year was:
The aggregate remuneration of employees through the period comprised:
Investment income includes the following:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The investment in government and corporate bonds is measured at amortised cost over the period to maturity.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
During the period, the company issued the following shares:
1,408,070 ordinary shares of the nominal value of €1 each in April 202 2 for a total consideration of € 1,408,070 .
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year, total lease payments amounted to €42,954.
On 30 March 2023, the company declared dividends of €2,569,330, 50% of which will be used to purchase 1,284,665 ordinary shares, which will be issued at par in April 2023.
During the year the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The ultimate parent company is Bilderlings Holdings SIA, a company registered in Latvia. The registered address is Jekaba Street 2, Riga, LV-1050, Latvia. The results for Bilderlings Pay Limited is consolidated in the parent company accounts.