QUINT_GROUP_LIMITED - Accounts

The directors present the strategic report for the year ended 31 March 2021.

The performance of all of the group’s activities during the year have been severely impacted by changes to the market place in which it operates in particular as a result of ongoing concerns with regards to the worldwide COVID 19 pandemic. These concerns have masked some very positive improvements across the group in particular continued growth and acquisition of market share in the US business post COVID.

Overall, the results for the year show a decrease in turnover to £21.137m from £32.119m in 2020. Gross profit over the year also decreased to £7.486m from £10.002m in 2020 however as a result of cost control methods utilised across the various COVID lockdowns, Profit before tax improved to a profit of £0.325m from a loss of £0.438m (pre disposal of subsidiary) in 2020.

As at the end of the financial year the Groups businesses have started to recover strongly and are expected to continue to recover and grow strongly in the next financial year.

The directors closely monitor the performance and financial risks of the group by reviewing the detailed monthly management accounts, daily gross profit reports and forecasts that are produced, and if necessary, action is taken.

Group Businesses

During the year, the group has continued to invest and develop its existing businesses:

• Monevo UK, the Group’s largest business, has continued to grow in its core UK market as it leverages its technology platform & market position despite the impact of COVID. The business had continued to see successful progress in the personal lending & credit sector and is expected to return to strong growth & performance as the economy in the UK continues to recover from the COVID pandemic. 

• Monevo USA, after a significant slowdown during the initial phase of the pandemic, has delivered exceptionally strong growth and has seen monthly revenues recover and exceed pre pandemic levels.  The business is expected to continue to grow rapidly during the next financial year.

• During the year, Monevo has continued to make strong progress in its international markets (Poland, Australia). The board remains very positive about the growth opportunity for Monevo in all overseas markets in the next financial year.

• Our credit improvement and management brands were not as affected by COVID as other areas of the Group. Overall, they remained stable and delivered similar revenues to the prior year.  The board looks forward to the next 12 months and the launch of a new and improved offering to the market that they anticipate will be highly successful.

• Growth in Infinian, the Groups data business, improved over the year despite COVID as some of the delayed contract wins started to come through.  There remains a number of potentially significant contracts in the pipeline and the Board remains positive about the growth opportunity for Infinian over the next year.

• The effects of the global COVID pandemic have had a significant impact on the Group over the course of the year to March 2021 however the board considers that the Groups products businesses remain very relevant and are ideally positioned to take advantage and grow as the countries in which it operates recover.

Post Balance sheet events

On the 1st October 2021, the company successfully completed a minority sale of a 30% holding in Monevo Limited and its subsidiaries to Transunion, a global insights and information company and one of the world’s largest credit bureaus.

The deal is mutually beneficial for all parties in the joint aspiration to continually improve access to credit for consumers and provides a platform for Monevo Limited and its subsidiaries to realise their ambitious growth plans for the future.

On behalf of the board

The principal activities of the group continued to be that of operating a regulated lending market place and platform in four countries, providing credit risk and other related data to lenders and other large credit bureaus and the provision of credit reporting services to UK consumers.

The directors are pleased with the performance of all the group’s activities during the year.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the year are set out on page 6. Dividends of £nil were paid out to the shareholders during the year.

Technology is at the heart of everything the group does and the group has continued to invest in innovating and strengthening our technology platforms so we continue to deliver market leading technologies and products.

Subsequent to the year-end, the directors are pleased to report that the group’s profitability and growth has continued. The Groups operations in its emerging markets are all experiencing further growth.

The directors remain very positive as to the future prospects of the group and expect to report further significant growth in the current financial year.

Lopian Gross Barnett & Co were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

•     state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;

•     prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Quint Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 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 group's and the parent company's affairs as at 31 March 2021 and of the group's profit 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

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' report 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.

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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.

As explained more fully in the directors' responsibilities statement, 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 parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, 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:

• We obtained an understanding of laws and regulations that affect the entity, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations.

• Where considered necessary we enquired of those charged with governance, reviewed correspondence and reviewed meeting minutes for evidence of non-compliance with relevant laws and regulations.

• We gained an understanding of the controls environment which includes the controls in place to prevent and detect fraud. We enquired of those charged with governance about any incidences of fraud that had taken place during the accounting period.

• The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.

• We reviewed financial statements disclosures to assess compliance with relevant laws and regulations.

• We enquired of those charged with governance about actual and potential litigation and claims.

• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.

• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,610,002 (2020 - £6,826,466 profit).

Quint Group Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Glasshouse, Alderley Park, Nether Alderley, Cheshire, SK10 4ZE.

The group consists of Quint Group Limited and all of its subsidiaries.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The consolidated financial statements incorporate those of Quint Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 March 2021.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

Subsidiaries have been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

The financial statements have been prepared on a going concern basis, this assumes that the company will meet its obligations and continue to trade as a going concern. The company has traded profitably since the year end and the directors have prepared cash flow forecasts that cover a period of 12 months from the date of signing, which show an increase in cash reserves. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from the going concern principle ceasing to apply.

Turnover represents amounts received for financial intermediary services recognised at a point when end users take out a product with lenders.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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:

No amortisation has been recognised in the year for the Domain Name as management have assessed that the residual value of the Domain Name is greater than cost.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation 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:

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 recognised in the profit and loss account.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use.

Cash and cash equivalents are basic financial assets.

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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, 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.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments 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. Amounts 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.

The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. 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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

Foreign currency translation

The results of the consolidated accounts include overseas subsidiaries whose results for the year were translated using rates obtained from reliable sources.

In the application of the group’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.

An analysis of the group's turnover is as follows:

The exceptional costs in the prior year, relate to costs incurred as a result of the disposal of its subsidiary Money Guru and costs associated with share related matters.

Exchange differences recognised in profit or loss during the year, amounted to £38,437 (2020 - £41,995).

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

Investment income includes the following:

The Gain on disposal of investments in the prior year is in relation to the companies subsidiary Money Guru Ltd which was disposed in that year. The company was disposed of for the value of its share capital which is £100 and purchased by the groups ultimate parent company Quint Holdings Ltd. The gain on the disposal was arisen due to Money Guru having negative net assets at the time of disposal.

The actual credit 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 company acquired two new subsidiaries in the year named Credit Angel Limited (company number 12427705) and Monevo Technology (company number 13063562), which were incorporated on the 27 January 2020 and 4 December 2020, respectfully. Quint Group Limited acquired the entire ordinary share capital of both companies which comprised of 100 shares at £1 per share.

All of the above subsidiary undertakings are included in these consolidated financial statements.

The group's bank loans has fixed and floating charges over the group assets.

The bank holds fixed and floating charges over the company's property and undertakings.

The group's bank loans has fixed and floating charges over the group assets.

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax liability set out above is expected to reverse within 36 months and relates to accelerated capital allowances that are expected to mature within the same period.

The deferred Assets shown above represent Group losses available for offset against future profits.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

As at the balance sheet date the share premium was unpaid.

Operating lease commitments include rentals payable by the group for certain of its property and the lease of a car, the terms of which run until March 2022.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Included within other debtors for the year ended 31 March 2021 is an amount £56,593 (2020: £52,435) owing from Michael Ransom, a director of the company. The loan is repayable on demand and no interest was charged in the year.

Included within other debtors for the year ended 31 March 2021 is an amount £10,385,514 (2020: £10,126,960) owed from Quint Holdings Limited, a company which Gregory Cox is a shareholder. The loan is repayable on demand and no interest was charged in the year.

Included within other debtors for the year ended 31 March 2021 is an amount £2,203,101 (2020: £2,040,917) owed from Money Guru Limited, a company which is owned by Quint Holdings Limited. The loan is repayable on demand and no interest was charged in the year.

Included within other creditors for the year ended 31 March 2021 is an amount £255,000 (2020: £335,000) owing to Gregory Cox, a director of the company. The loan is repayable on demand and no interest was charged in the year.

Included within other creditors for the year ended 31 March 2021 is an amount £18,109 (2020: £16,182) owing to Ezra Chapman, a director of the company. The loan is repayable on demand and no interest was charged in the year.

Since the year end, the Group as a whole continues to be impacted by the ongoing COVID pandemic.

Post year end trading for the group has, in the main, being positive against our expectations for market reaction and recovery from the latest lockdown due to the pandemic and is now showing signs of the recovery expected, we now envisage a solid performance for the next financial year as things being to move back to normal.

On the 1st October 2021, the company successfully completed a minority sale of a 30% holding in Monevo Limited and its subsidiaries to Transunion.

The deal is mutually beneficial for all parties in the joint aspiration to continually improve access to credit for consumers and provides a platform for Monevo Limited and its subsidiaries to realise their ambitious growth plans for the future

There were no other material post balance sheet events up to the date of approval of these financial statements by the board.