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Registered number: 10992526
FUNDERBEAM MARKETS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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FUNDERBEAM MARKETS LIMITED
COMPANY INFORMATION
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FUNDERBEAM MARKETS LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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FUNDERBEAM MARKETS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors present the strategic report on Funderbeam Markets Limited ("the Company") for the year ended 31 December 2020.
Principal activity
The principal activity of the Company in the year was the operation of an online platform for connecting investors and early stage companies seeking to raise capital. The Company’s activities are regulated by the Financial Conduct Authority.
The results for the year and the financial position at the end of the period are considered satisfactory by the directors. The year began with a review of spending priorities and headcount reductions, this continued into the COVID-19 pandemic and lockdowns. The company was able to improve on prior year performance and grow revenues, this was despite a slowdown in business activity during the middle of the year.
The results for the year are shown in the Statement of Comprehensive Income on page 8. The Company's Statement of Financial Position is detailed on page 9 and shows a net asset position of €487,773 (2019: €440,759).
COVID-19
The COVID-19 crisis and subsequent lockdowns had a mixed impact on business operations and financial results.
Day-to-day operations only experienced minor disruptions. This was due to the cloud-based nature of the Funderbeam Marketplace and internal systems, as well as existing familiarity with web-based meetings and work processes. Employees were able to transition working from home arrangements and continue in their regular duties.
Financial results for the Company have improved despite the COVID-19 pandemic. Revenues have increased while expenditure has decreased due to cost cutting and cash preservation measures. Planned increases in sales and marketing expenditure and hiring of new strategic and sales employees are on hold pending more favourable market conditions.
The Company expects to resume business expansion plans in 2021 to take advantage of the end of UK based lockdowns and business closures. Funderbeam does not expect any long-term adverse impact from the COVID-19 pandemic.
Brexit
With the departure of the UK from the European Union and the end of the transition period, the Company is no longer able to longer take advantage of the passporting regime. Activities in the EU market ceased at the end of 2020, and the Company will now focus on its UK operations only. As the majority of revenues have historically been EU based this will have a significant impact on overall future revenues.
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FUNDERBEAM MARKETS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Principal risks and uncertainties
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The Company has exposure to two main areas of risk, foreign exchange risk and liquidity risk.
Foreign exchange transactional currency exposure
The Company’s functional and presentation currency is Euros, however being domiciled in the United Kingdom means that it incurs a large proportion (approximately 40%) of its transactions in Pound Sterling. As such there is ongoing exposure to foreign exchange risk. The directors do not consider it necessary to actively hedge exchange rates but do monitor these on an ongoing basis. As the business grows in the UK, it will generate increasing turnover in Pound Sterling, offering a natural hedge to the currency of the cost base.
Liquidity risk
The objective of the Company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The Company ensures it has sufficient autonomy over cash outflows to manage this risk and expects to meet its future financial obligations through operating cash flows. It is also able to call upon the support of its parent company, Funderbeam Ltd, for additional funding as needed.
Financial key performance indicators
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The directors review a range of key performance indicators ("KPIs") on a regular basis to monitor the performance of the Company. These include net assets, turnover, funds raised by early stage companies on the platform and the number of clients. This ongoing review is integral to maintaining the performance of the Company.
The Company will increase its focus on the UK market. As the economy returns to normal and the disruptive impact of the COVID-19 pandemic ends the Company will proceed with expansionary plans to grow revenues.
Directors' statement of compliance with duty to promote the success of the Company
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The directors have had regard to the matters set out in section 172 (1) (a) to (f) of the Companies Act 2006 when performing their duty under section 172 in the following ways:
a) the likely consequences of any decision in the long term
b) the interests of the Company's employees
c) the need to foster the Company's business relationships with suppliers, customers and others
d) the impact of the Company's operations on the community and the environment
e) the desirability of the Company maintaining a reputation for high standards of business conduct
f) the need to act fairly as between members of the Company
This report was approved by the board and signed on its behalf.
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FUNDERBEAM MARKETS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors present their report and the financial statements for the year ended 31 December 2020.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors have prepared the financial statements on a going concern basis having considered the nature of the Company, the ongoing business interest and ability of the Company to generate turnover post year end, and the appetite of investors to continue to inject cash into the parent company, which in turn has committed to provide ongoing financial support.
In the year ended 31 December 2020 the Company generated a loss of €1,357,982 and it remains loss making post year end. At 31 December 2020 the Company had cash balances of €380,734. These key performance indicators highlight areas of risk, including the low level of cash in comparison to the expenditure incurred by the Company in a normal course of business and therefore its ability to meet its regulatory capital requirements and continue to discharge its liabilities as they fall due.
Management has undertaken a review of expenses and implemented significant cost cutting and cash preservation measures over the course of the year. These cost savings combined with the discontinuation of EU market operations the Company enters 2021 with a significantly lower cost base.
The directors have prepared cash flow forecasts and budgets for a period of 24 months from the date of signing these accounts, these incorporate expected funding, management’s careful management of suppliers, and expected future revenues. The parent company has committed to providing ongoing financial support to the Company. Following a capital raise of €3.4m completed in early 2021, the parent company has sufficient capital reserves to provide adequate funding for the Company.
On 26 March 2021 the directors approved the issue of 220,351 ordinary shares to Funderbeam Ltd, the immediate parent undertaking for €1.13455 per share for a total consideration of €250,000.
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FUNDERBEAM MARKETS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors who served during the year were:
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
The auditors, Haysmacintyre LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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FUNDERBEAM MARKETS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FUNDERBEAM MARKETS LIMITED
We have audited the financial statements of Funderbeam Markets Limited (“the Company”) for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 Company's affairs as at 31 December 2020 and of its loss 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.
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
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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.
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FUNDERBEAM MARKETS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FUNDERBEAM MARKETS LIMITED (CONTINUED)
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Auditors' Report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the 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.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the 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.
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FUNDERBEAM MARKETS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FUNDERBEAM MARKETS LIMITED (CONTINUED)
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' 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.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for equity crowdfunding business and trade regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
∙inspecting correspondence with regulators and tax authorities;
∙discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
∙evaluating management’s controls designed to prevent and detect irregularities;
∙identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
∙challenging assumptions and judgements made by management in their critical accounting estimates.
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 auditor’s report.
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FUNDERBEAM MARKETS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FUNDERBEAM MARKETS LIMITED (CONTINUED)
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 Auditors' 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.
Melanie Pittas
for and on behalf of
Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
27 April 2021
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FUNDERBEAM MARKETS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
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Interest receivable and similar income
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Loss for the financial year
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There was no other comprehensive income for 2020 (2019:€Nil).
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The notes on pages 14 to 23 form part of these financial statements.
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FUNDERBEAM MARKETS LIMITED
REGISTERED NUMBER: 10992526
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 April 2021.
The notes on pages 14 to 23 form part of these financial statements.
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FUNDERBEAM MARKETS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2020
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Shares issued during the year
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Shares issued during the year
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The notes on pages 14 to 23 form part of these financial statements.
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FUNDERBEAM MARKETS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
Cash flows from operating activities
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Loss for the financial year
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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(Decrease)/increase in creditors
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Net cash used in operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Net cash used in investing activities
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Cash flows from financing activities
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Net cash generated from financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 14 to 23 form part of these financial statements.
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FUNDERBEAM MARKETS LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2020
The notes on pages 14 to 23 form part of these financial statements.
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Funderbeam Markets Limited is a limited liability company incorporated and domiciled in England and Wales. The address of its registered office and principal place of business is Douglas Houghton House, 231 Vauxhall Bridge Road, London, England, SW1V 1AD.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The directors have prepared the financial statements on a going concern basis having considered the nature of the Company, the ongoing business interest and ability of the Company to generate turnover post year end, and the appetite of investors to continue to inject cash into the parent company, which in turn has committed to provide ongoing financial support.
In the year ended 31 December 2020 the Company generated a loss of €1,357,982 and it remains loss making post year end. At 31 December 2020 the Company had cash balances of €380,734. These key performance indicators highlight areas of risk, including the low level of cash in comparison to the expenditure incurred by the Company in a normal course of business and therefore its ability to meet its regulatory capital requirements and continue to discharge its liabilities as they fall due.
Management has undertaken a review of expenses and implemented significant cost cutting and cash preservation measures over the course of the year. These cost savings combined with the discontinuation of EU market operations the Company enters 2021 with a significantly lower cost base.
The directors have prepared cash flow forecasts and budgets for a period of 24 months from the date of signing these accounts, these incorporate expected funding, management’s careful management of suppliers, and expected future revenues. The parent company has committed to providing ongoing financial support to the Company. Following a capital raise of €3.4m completed in early 2021, the parent company has sufficient capital reserves to provide adequate funding for the Company.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover recognised in the period relates to syndication fees recognised on the transaction date.
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
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Financial instruments (continued)
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For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, 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.
Short term debtors are measured at transaction price, less any impairment.
Short term creditors are measured at the transaction price.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is Euros.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the date of the Statement of financial position and the amounts reported for revenues and expenses during the year.
Critical judgements in applying the entity’s accounting policies
The Company has not been required to apply any critical judgements in preparing the financial statements.
Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of the assets and liabilities within the next financial year are addressed below.
Impairment of debtors
The Company makes an estimate of the recoverable value of debtors. When assessing impairment of debtors, management considers factors including the current credit rating of the debtor if available, the ageing profile of the debtors and historical experience. The Company has a bad debt provision of €1,057 (2019: €6,073).
Useful economic lives of non-financial assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Note 10 for the carrying amount of the tangible fixed assets, and Note 2.4 for the useful economic lives for each class of assets
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
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The operating loss is stated after charging:
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Depreciation of tangible fixed assets
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Rent expenses relating to operating leases
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Fees payable to the Company's auditor for:
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- audit of the Company's annual financial statements
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- other assurance services
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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The average monthly number of employees, including the directors, during the year was as follows:
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Staff costs were as follows:
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Company contributions to defined contribution pension schemes
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Taxation on profit on ordinary activities
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
9.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2019: lower than) the standard rate of corporation tax in the UK of 19% (2019: 19%). The differences are explained below:
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Loss on ordinary activities before tax
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Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019: 19%)
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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Unrelieved tax losses carried forward
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Total tax charge for the year
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At 31 December 2020 the Company has taxable losses of £3,911,307 (2019: £2,701,784) carried forward.
As announced in the budget on Wednesday 3rd March 2021, the rate of corporation tax will increase from the current rate of 19% to 25% from 1 April 2023.
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Amounts owed by group undertakings
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Prepayments and accrued income
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Included within other debtors are rental deposits of €5,247 (2019: €25,474) due after more than one year.
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Cash and cash equivalents
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Cash held on behalf of clients
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Creditors: amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Amounts held on behalf of clients
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Allotted, called up and fully paid
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4,418,771 (2019: 3,180,398) Ordinary shares of €1.13455 each
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On 10 February 2020 the Company issued 352,562 Ordinary shares of €1.13455 at par value for a total consideration of €399,999.
On 30 March 2020 the Company issued 154,246 Ordinary shares of €1.13455 at par value for a total consideration of €175,000.
On 22 June 2020 the Company issued 379,004 Ordinary shares of €1.13455 at par value for a total consideration of €429,999.
On 25 September 2020 the Company issued 246,793 Ordinary shares of €1.13455 at par value for a total consideration of €279,999.
On 30 December 2020 the Company issued 105,768 Ordinary shares of €1.13455 at par value for a total consideration of €119,999.
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FUNDERBEAM MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the scheme and has been disclosed in Note 7. At 31 December 2020 there was £Nil (2019: £Nil) outstanding.
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Commitments under operating leases
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At 31 December 2020 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Related party transactions
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During the year the Company received administrative services from Funderbeam OÜ, a fellow subsidiary undertaking incorporated in Estonia totalling €793,886 (2019: €778,566). These amounts were repaid in full in the year. At the reporting date €Nil (2019: €Nil) was owed to Funderbeam OÜ.
At the year end the Company was owed €131,409 (2019: €Nil) by Funderbeam Ltd, the parent undertaking.
The directors are considered to be key management personnel, their remuneration has been disclosed in Note 8.
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Post balance sheet events
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On 18 March 2021 the Chief Legal Officer submitted their resignation. The company has begun the process for replacing them and expects to have identified and recruited a new hire by 31 May 2021.
On 26 March 2021 the directors approved the issue of 220,351 ordinary shares to Funderbeam Ltd, the immediate parent undertaking for €1.13455 per share for a total consideration of €250,000.
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Parent undertaking and controlling party
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The parent undertaking is Funderbeam Ltd, by virtue of its shareholding.
These accounts are consolidated into the financial statements of Funderbeam Ltd, which are publicly available at Douglas Houghton House, 231 Vauxhall Bridge Road, London, England, SW1V 1AD.
The ultimate controlling party is Kaidi Ruusalepp.
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