Company No: 09707996 (England and Wales)

Contents

• Company Information
• Accountant's Report
• Balance Sheet
• Notes to the Unaudited Financial Statements

DIRECTORS	M Arnaldi
	J Farr-Jones
	R E J Savage
REGISTERED OFFICE	27 Old Gloucester Street
	London
	WC1N 3AX
	United Kingdom
COMPANY NUMBER	09707996(England and Wales)
ACCOUNTANT	Deloitte LLP
	1 New Street Square
	London
	EC4A 3HQ
	United Kingdom

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Creditscript (UK) Ltd. for the financial year ended 30 November 2020 which comprises the Balance Sheet and the related notes 1 to 9 from the Company’s accounting records and from information and explanations you have given us.

We are subject to the ethical and other professional requirements of the Institute of Chartered Accountants in England and Wales (ICAEW) which are detailed at _http://www.icaew.com/en/members/regulations-standards-and-guidance/_.

It is your duty to ensure that Creditscript (UK) Ltd. has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Creditscript (UK) Ltd.. You consider that Creditscript (UK) Ltd. is exempt from the statutory audit requirement for the financial year.

We have not been instructed to carry out an audit or a review of the financial statements of Creditscript (UK) Ltd.. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

This report is made solely to the Board of Directors of Creditscript (UK) Ltd., as a body, in accordance with the terms of our engagement letter dated 23 November 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Creditscript (UK) Ltd. and state those matters that we have agreed to state to you in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Creditscript (UK) Ltd. and its Board of Directors as a body for our work or for this report.

Deloitte LLP
Accountant

1 New Street Square
London
EC4A 3HQ
United Kingdom

01 July 2021

		2020		2019
	Note	£		£
Fixed assets
Intangible assets	3	1,272,212		1,133,808
Tangible assets	4	1,476		735
		1,273,688		1,134,543
Current assets
Debtors	5	193,834		389,855
Cash at bank and in hand		14,692		65,021
		208,526		454,876
Creditors
Amounts falling due within one year	6	( 185,258)		( 339,975)
Net current assets		23,268		114,901
Total assets less current liabilities		1,296,956		1,249,444
Creditors
Amounts falling due after more than one year		( 35,000)		0
Net assets		1,261,956		1,249,444
Capital and reserves
Called-up share capital		1,308,477		1,308,477
Profit and loss account		( 46,521 )		( 59,033 )
Total shareholder's funds		1,261,956		1,249,444

For the financial year ending 30 November 2020 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Creditscript (UK) Ltd. (registered number: 09707996) were approved and authorised for issue by the Board of Directors on 01 July 2021. They were signed on its behalf by:

J Farr-Jones Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year.

General information and basis of accounting

Creditscript (UK) Ltd. (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 27 Old Gloucester Street , London, WC1N 3AX, United Kingdom.

The financial statements have been prepared under the historical cost convention, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council.

The functional currency of Creditscript (UK) Ltd. is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

Going concern

The rapid spreading of Covid-19 has continued to be a significant risk to the global economy. The directors continue to monitor the impact of the virus on the business as more information about the epidemic emerges. At the time of signing, the directors do not consider Covid-19 to impact the Company’s ability to continue as a going concern. The Company is in the growth phase of development and continues to benefit from the support of its shareholders. Expenditure is directed at the continuing development of the Company and is mostly variable according to available resources. Committed fixed costs to the Company are minimal. The directors are satisfied that the Company has sufficient resources to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the Balance Sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Balance Sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Employee benefits

The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.

Deferred tax assets and liabilities are not discounted.

Intangible assets

Research and development

Research expenditure is written off as incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the Company is expected to benefit. The intangible assets include an online investment platform developed by the Company. The amortisation will commence from the date the asset starts to generate revenue. Provision is made for any impairment.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Computer equipment - 3 years

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Leases

The Company as lessee
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through the Profit and Loss Account, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

2. Employees

	2020		2019
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	2		2

3. Intangible assets

	Other intangible assets		Total
	£		£
Cost
At 01 December 2019	1,133,808		1,133,808
Additions	138,404		138,404
At 30 November 2020	1,272,212		1,272,212
Accumulated amortisation
At 01 December 2019	0		0
At 30 November 2020	0		0
Net book value
At 30 November 2020	1,272,212		1,272,212
At 30 November 2019	1,133,808		1,133,808

The Company has been focused on extensive R&D and development of its principal software asset for over 3 years. This custom designed software platform is considered to be unique, and as such, the cost of development is original development providing the framework for the Company's business model. In accordance with the requirements of FRS 102, the directors evaluate the expected future economic benefits of the development project and capitalised direct costs and an appropriate share of overhead as development costs to the extent that they are satisfied with reasonable certainty that those benefits will exceed the cost.

While it is possible to measure the costs with reasonable certainty, the economic benefit of the development expenditure is that of the entire business undertaking, since such development is fundamental to the main business activity. As such, the directors have concluded that, as well as following the requirements of FRS102, it is a logical imperative that the development expenditure be capitalised as an intangible asset.

The expected useful life of the asset created cannot be assessed easily, because, in the nature of internet-based development, the useful life will depend on the changes in technology introduced over the coming years. The directors have evaluated the useful life at ten years initially, to take account of the fast changing environment of computer technology, but intend to review this estimate in the light of future developments in the field. Based upon company forecasts, the Company is confident the software asset will generate significant revenues in due course upon its beta launch.

4. Tangible assets

	Office equipment		Total
	£		£
Cost/Valuation
At 01 December 2019	1,090		1,090
Additions	834		834
At 30 November 2020	1,924		1,924
Accumulated depreciation
At 01 December 2019	355		355
Charge for the financial year	93		93
At 30 November 2020	448		448
Net book value
At 30 November 2020	1,476		1,476
At 30 November 2019	735		735

5. Debtors

	2020		2019
	£		£
Amounts owed by Group undertakings	0		2,154
Corporation tax	146,724		358,421
Other debtors	47,110		29,280
	193,834		389,855

Amounts owed by Group undertakings are unsecured, interest free and repayable on demand.

6. Creditors: amounts falling due within one year

	2020		2019
	£		£
Trade creditors	63,205		54,829
Amounts owed to Parent undertakings	93,213		1,000
Other creditors	7,310		243,958
Other taxation and social security	21,530		40,188
	185,258		339,975

Amounts owed to Parent undertakings are unsecured, interest free and repayable on demand.

7. Financial commitments

Pensions

The Company operates a defined contribution pension scheme for the directors and senior employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. The total expense charged to profit or loss in the year ended 30 November 2020 was £1,752 (2019: £4,173). At the year end, contributions of £5 (2019: £438) were due to the fund and included in other creditors.

8. Related party transactions

The Company has taken advantage of the exemption under FRS 102 Section 33 not to provide information on related party transactions with other wholly owned companies within the Group headed by Creditscript Holdings Limited.

Included within debtors is a loan of £37,682 (2019: £29,166) owed by Creditscript Sàrl, a Company under common control. The loan is interest free and repayable on demand.

As at the year end there was an amount owing to Credere Holdings, a company under common control totalling £Nil (2019: 201,280).

The total aggregate directors remuneration for the year was £75,000 (2019: £75,000). The directors are the only key management personnel of the Company.

9. Ultimate controlling party

The immediate and ultimate parent undertaking is Creditscript Holdings Limited, a company incorporated in the United Kingdom with the registered office address of 27 Old Gloucester Street, London, WC1N 3AX.

Mr J Farr-Jones, a director of the Company, is the ultimate controlling party by virtue of his majority shareholding in the parent company, Creditscript Holdings Limited.