Diligencia Consulting Limited - Filleted accounts

DILIGENCIA CONSULTING LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2022

Company Registration Number: 06538268

DILIGENCIA CONSULTING LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
CONTENTS									PAGES
Company information									1
Balance sheet									2 to 3
Notes to the financial statements									4 to 11

DILIGENCIA CONSULTING LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2022
DIRECTORS
N Bakkali
R Goodworth
P Lord
SECRETARY
R Goodworth
REGISTERED OFFICE
Summertown Pavilion
18-24 Middle Way
Summertown
Oxford
OX2 7LG
COMPANY REGISTRATION NUMBER
06538268 England and Wales

DILIGENCIA CONSULTING LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
			Notes		2022				2021
					£				£
FIXED ASSETS
Intangible assets			5				818,883				690,128
Tangible assets			6				68,205				83,738
Investments			7				790				790
							887,878				774,656
CURRENT ASSETS
Debtors			8		719,257				882,653
Cash at bank and in hand					359,028				127,045
					1,078,285				1,009,698
CREDITORS: Amounts falling due
within one year			9		847,115				787,669
NET CURRENT ASSETS							231,170				222,029
TOTAL ASSETS LESS CURRENT LIABILITIES							1,119,048				996,685
CREDITORS: Amounts falling due
after more than one year			10				24,808				34,751
Provisions for liabilities and charges							7,195				8,123
NET ASSETS							1,087,045				953,811
CAPITAL AND RESERVES
Called up share capital							17,500				17,500
Distributable profit and loss account							1,069,545				936,311
SHAREHOLDERS' FUNDS							1,087,045				953,811

DILIGENCIA CONSULTING LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
These accounts have been prepared and delivered in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
For the financial year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
As permitted by S444 (5A) of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company’s Profit and Loss Account or Directors Report.
Signed on behalf of the board of directors
N Bakkali						R Goodworth
Director						Director
Date approved by the board: 26 September 2023

DILIGENCIA CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1	GENERAL INFORMATION
	Diligencia Consulting Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is:
	Summertown Pavilion
	18-24 Middle Way
	Summertown
	Oxford
	OX2 7LG
	The financial statements are presented in Sterling, which is the functional currency of the company.
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of preparation of financial statements
	These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
	Revenue recognition

	Turnover is measured at the fair value of consideration received or receivable. It is recognised in respect of providing data with regard to companies and individuals, operating in the Middle East and North Africa region, as soon as there is a right to consideration and is determined by reference to the value of the work performed. Turnover is stated net of trade discounts and value added tax.
	The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.

	Grant Income
	Grant income has been recognised under the accrual model, where income is recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

DILIGENCIA CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Intangible fixed assets

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. At acquisition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.

	Goodwill amortisation is charged on a straight line basis so as to write off the cost of the asset, less its residual value assumed to be zero, over its useful economic life, which is estimated to be 10 years.
	Database costs capitalised relate to costs of acquiring data on companies and individuals which forms the basis of the company's database. This data is estimated to have a useful economic life of 10 years. Development costs capitalised relate to external costs of developing the platform where the company holds this data for use of its customers. The platform is estimated to have a useful economic life of 5 years.
	If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations.

	Tangible fixed assets

	Fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses.

	Depreciation has been provided at the following rates so as to write off the cost or valuation of the assets less their residual value over their estimated useful lives.
	Leasehold improvements					Straight line basis at 20% per annum
	Fixtures and fittings					Straight line basis at 25% per annum
	Equipment					Straight line basis at 25% per annum
	On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the profit and loss account, and included within administrative expenses.
	Investments

	Investments in subsidiaries are shown at cost less accumulated impairment losses.

DILIGENCIA CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Financial Instruments
	The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
	Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

	Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
	Impairment of non-financial assets

	At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit and loss account.
	If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.

	Debtors

	Short term debtors are measured at transaction price, less any impairment.

	Creditors
	Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.

DILIGENCIA CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Leases
	Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.
	Payments applicable to operating leases are charged against profit on a straight line basis over the lease term.
	Taxation
	Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period.
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods based on current tax rates and laws. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other taxable profits.
	Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

	Current and deferred tax assets and liabilities are not discounted.
	Foreign currencies

	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
	Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange prevailing at that date. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit or loss.

	Pensions
	The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments in the balance sheet.

DILIGENCIA CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Research and development
	Expenditure on research is written off against profits in the year in which it is incurred. Development expenditure is capitalised and recognised in accordance with the company's policy for intangible fixed assets.
	Consolidation
	The company is a parent company subject to the small companies regime. The company and its subsidiary comprise a small group. The company has therefore taken advantage of the option provided by section 399 of the Companies Act 2006 not to prepare group accounts.
3	CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
	The directors have made key estimates and assumptions when making judgements over the useful economic life of the company’s intangible assets.
4	EMPLOYEES
	The average number of persons employed by the company (including directors) during the year was:
									2022		2021
	Average number of employees								22		23

DILIGENCIA CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
5	INTANGIBLE FIXED ASSETS
							Goodwill	Development and database costs			Total
							£		£		£
	Cost
	At 1 January 2022						20,000		1,185,655		1,205,655
	Additions						-		245,332		245,332
	At 31 December 2022						20,000		1,430,987		1,450,987
	Accumulated amounts written off
	At 1 January 2022						20,000		495,527		515,527
	Charge for year						-		116,577		116,577
	At 31 December 2022						20,000		612,104		632,104
	Net book value
	At 1 January 2022						-		690,128		690,128
	At 31 December 2022						-		818,883		818,883
	Development and database costs are only capitalised once they satisfy the conditions set out under FRS 102 Section 1A smaller entities and the Companies Act 2006.
6	TANGIBLE ASSETS
				Leasehold improvements			Fixtures and fittings		Equipment		Total
					£		£		£		£
	Cost
	At 1 January 2022				97,858		35,782		108,884		242,524
	Additions				-		-		12,984		12,984
	At 31 December 2022				97,858		35,782		121,868		255,508
	Accumulated depreciation and impairments
	At 1 January 2022				56,859		35,782		66,145		158,786
	Charge for year				10,644		-		17,873		28,517
	At 31 December 2022				67,503		35,782		84,018		187,303
	Net book value
	At 1 January 2022				40,999		-		42,739		83,738
	At 31 December 2022				30,355		-		37,850		68,205

DILIGENCIA CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
7	FIXED ASSET INVESTMENTS
											Investment in subsidiary
											£
	Cost
	At 1 January 2022										790
	At 31 December 2022										790
	Net book value
	At 1 January 2022										790
	At 31 December 2022										790
8	DEBTORS
									2022		2021
									£		£
	Trade debtors								300,810		495,816
	Prepayments and accrued income								82,698		51,463
	Other debtors								335,749		335,374
									719,257		882,653
9	CREDITORS: Amounts falling due within one year
									2022		2021
									£		£
	Bank loans and overdrafts								9,759		9,648
	Trade creditors								38,022		26,057
	Taxation and social security								93,627		89,378
	Accruals and deferred income								666,680		612,420
	Other creditors								39,027		50,166
									847,115		787,669
10	CREDITORS: Amounts falling due after more than one year
									2022		2021
									£		£
	Bank loans and overdrafts								24,808		34,751

DILIGENCIA CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
11	CONTINGENCIES AND COMMITMENTS
	Other Commitments
	Amounts falling due under operating leases:								2022		2021
									£		£
	In less than one year								77,650		77,650
	In more than one but less than five years								110,004		187,654
									187,654		265,304
12	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES
	The following directors' advances, credits and guarantees took place during the year:
			Balance at 1 January 2022		Amounts advanced		Amounts repaid		Amounts written off or waived		Balance at 31 December 2022
			£		£		£		£		£
	R Goodworth		123,563		-		-		-		123,563
	P Lord		124,149		-		-		-		124,149
			247,712		-		-		-		247,712

	These advances are interest free and repayable on demand.

13	RELATED PARTY TRANSACTIONS
	During the year, the following transactions with related parties took place:
	N Bakkali
	Director and shareholder								2022		2021
									£		£
	Advances to company		The director / shareholder has made advances to the company which are repayable on demand. No interest has been charged on these advances. At the year end, the company owed the director / shareholder the following amount:						34,456		46,956