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4. EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 December 2020 nor for the period ended 31 December 2019.

The average number of employees during the year was 1 (2019 – 1).

5. NET FINANCE COSTS

6. INCOME TAX

Analysis of tax expense

No liability to UK corporation tax arose for the year ended 31 December 2020 nor for the period ended 31 December 2019.

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

The company did not recognise deferred income tax assets of £76,627 (2019: £16,463) in respect of losses amounting to £403,297 (2019: £86,646) that can be carried forward against future taxable income.

7. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

8. INVESTMENTS

Financial assets at fair value through profit or loss:

Level 1 Represents those assets which are measured using unadjusted quoted prices for identical assets.

Level 2 Applies inputs other than quoted prices that are observable for assets either directly (as prices) or indirectly (derived from prices).

Level 3 Applies inputs which are not based on observable market data.

Investments are held at fair value through profit and loss using a three-level hierarchy for estimating fair value.

During March 2019 the company entered in to heads of agreement with two companies in South Eastern Europe to acquire the whole of the issued share capital of each company for a total consideration of €2,400,000. This transaction was to be completed by way of the production of a share purchase agreement no later than 31st June 2019 but due to various delays the agreement was extended on several occasions until in the year ended 31st December 2020 the parties to the agreement were unable to agree final terms and the agreement was unable to be completed.

Non-refundable part payments against the consideration were paid out in good faith during 2019 and 2020 but due to the agreement not continuing these amounts were deemed not to be recoverable and the full amount of these cost have now been written off. The conditions for this impairment arose in the year ended 31 December 2020 and, therefore, no impairment was recognised in the period ended 31 December 2019. The amount written off in relation to non-refundable part payments totals £824,617 and can be identified in the statement of profit or loss and other comprehensive income.

Of the total impairment amounting to £824,617, £396,626 was paid in the period ended 31 December 2019 and a further £427,990 was paid in the year ended 31 December 2020.

9. TRADE AND OTHER RECEIVABLES

10. CASH AND CASH EQUIVALENTS

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

-12279.14

-866.46