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Registered number: 10600192 (England and Wales)
FINTECH PARTNERS LTD
DIRECTOR'S REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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COMPANY INFORMATION
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ZEDRA Corporate Reporting Services (UK) Limited
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CONTENTS
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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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FINTECH PARTNERS LTD
REGISTERED NUMBER:10600192
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STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2022
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Debtors: amounts falling due after more than one year
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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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Provisions for liabilities
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FINTECH PARTNERS LTD
REGISTERED NUMBER:10600192
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 28 FEBRUARY 2022
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 4 to 10 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2022
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At 1 March 2020 (as previously stated)
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Prior year adjustment - correction of error
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At 1 March 2020 (as restated)
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At 1 March 2021 (as previously stated)
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Prior year adjustment - correction of error
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At 1 March 2021 (as restated)
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The notes on pages 4 to 10 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
1.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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The Company is in a net asset position of £1,568,591 primarily supported by amounts owed by group undertakings. Despite this position, due to the Company's business model being solely a transfer pricing agreement with the parent company, Financial Technology Partners LP, it is reliant on the continuous support of that company in order to remain a going concern.
The Company has received written confirmation from Financial Technology Partners LP that it will continue to provide financial support to the Company for a period of at least 12 months from the date of signing these financial statements. Furthermore, the director has assessed the ability of Financial Technology Partners LP to provide the support based upon the cash flow forecast and has concluded that the parent will have sufficient working capital to provide the necessary support. For this reason, the director continues to adopt the going concern basis in preparing the financial statements.
Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Rendering of services
Turnover is recognised on a cost plus 5% basis, in line with the intercompany service agreement with the parent company. Intercompany turnover is recognised when all of the following conditions are satisfied:
∙the amount of turnover can be measured reliably;
∙it is probable that the Company will receive the consideration due under the intercompany service agreement;
∙the costs incurred under the intercompany service agreement can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
1.Accounting policies (continued)
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.
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:
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Long-term leasehold property
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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.
Short term debtors are measured at transaction price, less any impairment. Amounts owed by group undertakings are intercompany loans measured at cost. These loans are unsecured, interest free and repayable on demand.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions.
Short term creditors are measured at the transaction price. Amounts owed to group undertakings are intercompany loans measured at cost. These loans are unsecured, interest free and repayable on demand.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
1.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
The auditors' report on the financial statements for the year ended 28 February 2022 was qualified.
We were not appointed as auditor of the Company until after 28 February 2022 and thus were unable to confirm the existence of the fixed assets at the year end. We were unable to satisfy ourselves by alternative means by using other audit procedures concerning the existence of tangible fixed assets held at 01 March 2021 or 28 February 2022, which were included in the balance sheet at £210,860 and £176,869 respectively. Consequently we were unable to determine whether any adjustments to these amounts was necessary.
The financial statements of Fintech Partners Ltd for the year ended 28 February 2021 were unaudited.
The audit report was signed on 31 August 2023 by Dominic King ACA (Senior Statutory Auditor) on behalf of Zedra Corporate Reporting Services (UK) Limited.
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The average monthly number of employees, including directors, during the year was 38 (2021 - 27).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Long-term leasehold property
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At 1 March 2021 (as previously stated)
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At 1 March 2021 (as restated)
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At 1 March 2021 (as previously stated)
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At 1 March 2021 (as restated)
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Charge for the year on owned assets
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At 28 February 2021 (as restated)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Due after more than one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Charged to profit or loss
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In the prior year, there were a number of transactions that were erroneously accounted for under the principles of US GAAP. The financial statements are however prepared under the requirements of FRS102. In order to correctly account for these transactions under FRS102, the financial statements have been restated as described below:
Right of use asset and liability
The Company previously recognised a right of use asset and corresponding liability (not allowed under FRS102). The following entries were recorded to correct this:
- Assets reduced by £920,333
- Liabilities reduced by £995.243
- Profit and loss reduced by £45,393 (Net change in accounting for straightlining of lease and depreciation)
- Retained earnings increased by £120,303
Dilapidation provision
The Company previously recognised a corresponding asset in relation to the dilapidation provision. Under FRS102, the correct treatment is to recognise an expense in the year the provision is raised. The following entries were recorded to correct this:
- Assets reduced by £93,093
- Profit and loss increased by £29,380
- Retained eanings decreased by £122,473
Change in bonus policy
The Company revisited their bonus policy. The following entries were recorded to account for this change:
- Assets reduced by £1,929,332
- Liabilities reduced by £1,837,459
- Retained earnings reduced by £58,559
- Profit and loss increased by £666,271
VAT adjustment
The Company posted the following to correct the VAT balance at year end:
- Assets reduced by £49,025
- Retained earnings reduced by £49,025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
8.Prior year adjustment (continued)
Cost plus adjustments
Based on the above adjustments, the following entries were made to account for the cost plus impact on revenue
- Profit and loss reduced by £682,789
- Retained earnings increased by £53,772
Summary:
The total effect of the above adjustments on retained earnings bought forward
- 1 March 2020: Reduction of £55,982
- 1 March 2021: Reduction of £88,514
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Commitments under operating leases
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At 28 February 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than one year and not later than five years
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Post balance sheet events
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In May 2022 the Company made a £1 investment in ADV LendCo UK Ltd. ADV LendCO UK Ltd is a newly incorporated company in England and Wales and FinTech Partners Ltd is the sole shareholder. There were no adjusting or other non-adjusting events occurring between the end of the reporting period and the date these financials were approved.
The immediate and ultimate parent undertaking and controlling party is Financial Technology Partners LP (Delaware LP). The registered office of the parent company is 1 Front Street, 31st Floor, San Francisco, California 94111, USA.
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