Moneyplus Holdings Limited and its subsi - Limited company accounts 22.3

REGISTERED NUMBER: 07580434 (England and Wales)

FOR

Page

Company Information  

1

Group Strategic Report  

2

Report of the Directors  

4

Report of the Independent Auditors  

6

Consolidated Profit and Loss Account  

10

Consolidated Balance Sheet  

12

Company Balance Sheet  

13

Consolidated Statement of Changes in Equity  

14

Company Statement of Changes in Equity  

15

Consolidated Cash Flow Statement  

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mr C Davis

Mr M Hutton

Mr J Mills

Mr A Phakey

Mr K Chung

REGISTERED OFFICE:

Riverside

New Bailey Street

Manchester

Lancashire

M3 5FS

REGISTERED NUMBER:

07580434 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

1 City Road East

Manchester

M15 4PN

The Directors present their strategic report for the period ended 28th February 2022.

BUSINESS REVIEW, STRATEGY & OUTLOOK

Turnover for the year was £18m as compared to £22m for the prior period. The Group's loss before tax increased to £8.7m as compared to £7.7m for the prior period, primarily driven by the cessation of trade with a group company - MoneyPlus Energy and accordingly contained within the losses as above were costs associated with the Directors placing MoneyPlus Energy into voluntary administration that are shown under 'discontinued operations'. The loss for the year also includes non-cash costs of depreciation and amortisation totalling £4.92m, and exceptional costs totalling £2,978k.

The year under review has seen the Group consolidate its position as a leading providing of debt advice in the UK. With the economy, and in particular consumers facing unprecedented rises in daily goods, leading to a cost of living crises the Group is better placed than any other firm in the sector to provide appropriate solutions to over indebted consumers. The exit from the provision of domestic energy supply has enabled the business to focus on its core debt advice offering. As was reported in the prior year, the Group completed on a transaction with Intriva Capital in early 2021, and subsequent to the year-end Intriva Capital increased its equity holding to a majority position, which places the Group in a strong position to grow its customer base. This has been further bolstered with an additional banking facility with OakNorth Bank PLC post year end, by way of a £6.5m loan, which will fund growth at a lower cost of capital for the business.

Management continue to believe that a key indicator of future trading performance is performance of its book of consumers. In this regard the Directors of the Group are pleased to report that all key metrics remain in line with forecasts.

The group has net liabilities, largely represented by amounts owed to group shareholders, which is common for a private equity backed group.

PRINCIPAL RISKS AND UNCERTAINTIES

The board of directors has identified that the key risks facing the Company are 1) Regulatory, 2) Attrition rates of consumers and 3) Marketplace.

REGULATORY

During the Pandemic the company engaged regularly with its regulator The Financial Conduct Authority (FCA). These positive discussions then continued into dialogue surrounding the costs of living crisis faced by the average consumer. In this regard the Group has been delighted to share its market intelligence and experience which has been welcomed by the regulator. The Group also continues to submit to the FCA and other regulators ideas and proposals for enhanced regulatory restrictions which will lead to better outcomes for consumers.

ATTRITION RATES OF CONSUMERS

As part of the ongoing performance of the company a key consideration is the monthly attrition rate of the consumer base. The company has and continues to demonstrate low levels of consumer attrition which management believe is reflective of positive consumer outcomes. These rates are continuously reviewed by not only the company but also external auditors commissioned on behalf of its finance providers.

MARKETPLACE

The UK having seen and witnessed the COVID - 19 Pandemic, consumers are now having to deal with the economic after effects of the same, coupled with the war in Ukraine, leading to 40 year highs in inflation. These complicated issues translate into very simple but severe implications for the average consumer and is placing a huge number of consumers under sever financial pressure. These consumers require quality regulated debt advice which the Group is well positioned to provide.

ON BEHALF OF THE BOARD:

Mr M Hutton - Director

28th February 2023

The directors present their report with the financial statements of the company and the group for the year ended 28th February 2022.

PRINCIPAL ACTIVITY

DIVIDENDS

No dividends will be distributed for the year ended 28th February 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st March 2021 to the date of this report.

Mr C Davis

Mr M Hutton

Other changes in directors holding office are as follows:

Mr E Fazakerley - resigned 15th March 2021

Mr A Iversen - resigned 28th February 2022

Mr J Mills - appointed 10th January 2022

Mr A Phakey - appointed 10th January 2022

Mr R Saunders - appointed 15th March 2021

Mr K Chung was appointed as a director after 28th February 2022 but prior to the date of this report.

Mr R Saunders ceased to be a director after 28th February 2022 but prior to the date of this report.

EMPLOYMENT AND EMPLOYMENT POLICIES

The company has implemented detailed human resources policies and acts as an equal opportunities employer.

Communication with all employees continues through formal training and presentations, the intranet and regular staff meetings and events.

DIRECTORS’ INDEMNITIES

The company has made qualifying third party indemnity provisions for the benefit of its Directors, which were made during the year and remain in force at the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The Group has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors' Report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this Directors' Report, specifically in respect of the review of the business, and future developments for the existing business.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and the group 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;

-

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

Xeinadin Audit Limited acquired the audit practice of Kay Johnson Gee Limited and has been appointed as auditor in succession. In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment.

ON BEHALF OF THE BOARD:

Mr M Hutton - Director

28th February 2023

Opinion

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 Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:

-

the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Group Strategic Report or the Report of the Directors.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

-

The nature of the industry and sector, control environment and business performance including the company's

remuneration policies, key drivers for directors remuneration, bonus levels and performance targets.

-

Results of the enquiries of management about their own identification and assessment of the risks of irregularities;

-

Any matters we have identified having obtained and reviewed the company's documentation of their policies and

procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of

noncompliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged

fraud;

-

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

-

the matters discussed among the audit engagement team regarding how and where fraud might occur in the

financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud being in the revenue recognition policy. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

In addition, we considered provisions of other 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.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with

provisions of relevant laws and regulations described as having a direct effect on the financial statements;

-

enquiring of management concerning actual and potential litigation and claims;

-

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of

material misstatement due to fraud;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal

entries and other adjustments; assessing whether the judgements made in making accounting estimates are

indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or

outside the normal course of business; and

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.  As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Roger Blaskey (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

1 City Road East

Manchester

M15 4PN

28th February 2023

TURNOVER

4

10,803

6,950

17,753

Cost of sales

(1,580

)

(6,275

)

(7,855

)

GROSS PROFIT

9,223

675

9,898

Administrative expenses

(11,940

)

(2,074

)

(14,014

)

OPERATING LOSS

6

(2,717

)

(1,399

)

(4,116

)

Intercompany bad debt

7

-

(2,442

)

(2,442

)

Staff settlements

7

(23

)

-

(23

)

Costs of fundamental

reorganisation

7

(54

)

-

(54

)

Re-financing costs

7

(459

)

-

(459

)

(3,253

)

(3,841

)

(7,094

)

Amounts written off investments

9

-

2,680

2,680

Interest payable and similar expenses

10

(4,303

)

(3

)

(4,306

)

LOSS BEFORE TAXATION

(7,556

)

(1,164

)

(8,720

)

Tax on loss

11

27

-

27

LOSS FOR THE FINANCIAL YEAR

(7,529

)

(1,164

)

(8,693

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(8,693

)

Loss attributable to:

Owners of the parent

(8,693

)

Total comprehensive income attributable to:

Owners of the parent

(8,693

)

TURNOVER

4

12,544

9,002

21,546

Cost of sales

52

(8,837

)

(8,785

)

GROSS PROFIT

12,596

165

12,761

Administrative expenses

(13,832

)

(1,079

)

(14,911

)

(1,236

)

(914

)

(2,150

)

Other operating income

148

-

148

OPERATING LOSS

6

(1,088

)

(914

)

(2,002

)

Staff settlements

7

(46

)

-

(46

)

Costs of fundamental

reorganisation

7

(3,968

)

-

(3,968

)

Re-financing costs

7

-

(100

)

(100

)

(5,102

)

(1,014

)

(6,116

)

Interest receivable and similar income

8

301

-

301

Interest payable and similar expenses

10

(2,179

)

-

(2,179

)

LOSS BEFORE TAXATION

(6,980

)

(1,014

)

(7,994

)

Tax on loss

11

269

-

269

LOSS FOR THE FINANCIAL YEAR

(6,711

)

(1,014

)

(7,725

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(7,725

)

Loss attributable to:

Owners of the parent

(7,725

)

Total comprehensive income attributable to:

Owners of the parent

(7,725

)

FIXED ASSETS

Intangible assets

13

10,379

14,088

Tangible assets

14

486

902

Investments

15

-

-

10,865

14,990

CURRENT ASSETS

Debtors

16

6,416

9,660

Cash at bank and in hand

137

20

6,553

9,680

CREDITORS

Amounts falling due within one year

17

(4,440

)

(19,808

)

NET CURRENT ASSETS/(LIABILITIES)

2,113

(10,128

)

TOTAL ASSETS LESS CURRENT LIABILITIES

12,978

4,862

CREDITORS

Amounts falling due after more than one year

18

(42,064

)

(25,255

)

NET LIABILITIES

(29,086

)

(20,393

)

CAPITAL AND RESERVES

Called up share capital

23

32

32

Share premium

15

15

Capital redemption reserve

3

3

Retained earnings

(29,136

)

(20,443

)

SHAREHOLDERS' FUNDS

(29,086

)

(20,393

)

The financial statements were approved by the Board of Directors and authorised for issue on 28th February 2023 and were signed on its behalf by:

Mr M Hutton - Director

FIXED ASSETS

Intangible assets

13

-

-

Tangible assets

14

-

-

Investments

15

15

30

15

30

CURRENT ASSETS

Debtors

16

-

3

CREDITORS

Amounts falling due within one year

17

(6,189

)

(6,794

)

NET CURRENT LIABILITIES

(6,189

)

(6,791

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(6,174

)

(6,761

)

CREDITORS

Amounts falling due after more than one year

18

(501

)

(1,331

)

NET LIABILITIES

(6,675

)

(8,092

)