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Information
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Contents
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Members' report
For the period ended 31 March 2022
The members present their annual report together with the audited financial statements of Praxis Alpha Partners LLP ('the LLP') for the period from 28 May 2021 to 31 March 2022.
Principal activities
The LLP was incorporated on 28 May 2021 and commenced trading on 1 March 2022.
The principal object of the LLP is to provide asset management services.
Designated Members
The designated members of the LLP during the period were:
Haris Papanikolaou
Roland Vetter
Members' capital and interests
No member shall be entitled to interest on his capital contribution, unless otherwise determined by the LLP and no member may be required to contribute any further capital on the insolvency of the LLP.
No member shall have the right directly or indirectly to withdraw or receive back any part of the amount standing to the credit of their capital account, except upon the winding-up of the LLP. The Executive Committee may from time to time determine to return some or all of the amounts standing to the credit of their respective capital accounts to one or more of the members (whether upon a member ceasing to be a member or otherwise), as the Executive Committee shall determine in its sole and absolute discretion. The Executive Committee shall only be permitted to exercise its discretion to return amounts standing to the credit of a member's capital account to a member where either (i) an amount equal to the amount to be returned is first contributed to the LLP as additional capital by one or more of the members; or (ii) the LLP has received prior written approval from the Financial Conduct Authority that it may do so without one or more other members having first contributed an amount of capital equal to the amount to be returned by the LLP.
Details of changes in members' capital in the ended 31 March 2022 are set out in the Reconciliation of members' interests.
Members are entitled to monthly drawings, in amounts determined by the Executive Committee at the start of each year. This amount is determined with consideration to the expected profitability of the LLP in the coming year. Each member is entitled to withdraw, with consent from the Executive Committee, any amount standing as a credit to their distribution account. In the event that any member has a deficit balance on their distribution account, this is repayable to the LLP at any time, at the discretion of the Executive Member. As at the end of each Accounting Period of the LLP, the Executive Committee shall, by reference to the LLP Accounts for each Accounting Period, determine the allocation of Income Profits amongst the Members in accordance with the LLP agreement.
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Members' report (continued)
For the period ended 31 March 2022
Members' responsibilities statement
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 LLP and of the profit or loss of the LLP for that period.
In preparing these financial statements, the members are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
This report was approved by the members on 27 July 2022 and signed on their behalf by:
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Independent auditor's report to the members of Praxis Alpha Partners LLP
For the period ended 31 March 2022
We have audited the financial statements of Praxis Alpha Partners LLP ('the LLP') for the period ended 31 March 2022, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Reconciliation of members' interests, and the related notes, 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).
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 LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the members' 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 LLP'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 members with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Members' Report other than the financial statements and our Auditor's report thereon. The members are responsible for the other information contained within the Members' Report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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.
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Independent auditor's report to the members of Praxis Alpha Partners LLP (continued)
For the period ended 31 March 2022
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 Auditor's 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
How the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including knowledge specific to auditing regulated investment management firms;
∙we made enquiries of management as to where they considered there was susceptibility to fraud, and their knowledge of actual and suspected and alleged fraud;
∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial statements of the LLP through discussions with the members and other management at the planning stage;
∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to misstatement, including with respect to fraud and non-compliance with laws and regulations; and
∙we focused our planned audit work on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the LLP including Companies Act 2006, employment legislation, The Financial Services and Markets Act 2000 and taxation legislation.
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Independent auditor's report to the members of Praxis Alpha Partners LLP (continued)
For the period ended 31 March 2022
Auditors' responsibilities for the audit of the financial statements (continued)
We assessed the extent of compliance with laws and regulations identified above through:
∙making enquiries of management;
∙reviewing legal expenditure throughout the period for any potential litigation or claims; and
∙considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙identified and assessed the design effectiveness of the controls management has in place to prevent and detect fraud;
∙determined the susceptibility of the LLP to management override of controls by checking the implementation of controls and enquiring of individuals involved in the financial reporting process;
∙reviewed journal entries throughout the period to identify unusual transactions;
∙performed analytical procedures to identify any large, unusual or unexpected transactions;
∙identified and challenged assumptions and judgements made by management in its significant accounting estimates; and
∙carried out substantive testing, including random samples, to check the occurrence and cut-off of income and expenditure.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:
∙agreeing financial statement disclosures to underlying supporting documentation; and
∙enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. Irregularities that result from fraud might be
inherently more difficult to detect than irregularities that result from error as they may involve deliberate concealment or collusion. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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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Independent auditor's report to the members of Praxis Alpha Partners LLP (continued)
For the period ended 31 March 2022
This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in an Auditor's 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 LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
130 Wood Street
EC2V 6DL
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Statement of comprehensive income
For the period ended 31 March 2022
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Statement of financial position
As at
The financial statements were approved and authorised for issue by the members on
The notes on pages 11 to 17 form part of these financial statements.
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Reconciliation of members' interests
For the period ended 31 March 2022
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Statement of cash flows
For the period ended 31 March 2022
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Notes to the financial statements
For the period ended 31 March 2022
Praxis Alpha Partners LLP is a limited liability partnership that was incorporated in England and Wales with registered number is OC437668. Its registered office is 130 Wood Street, London, EC2V 6DL and principal place of business is The Foundry, Smiths Square, London, W6 8AF, London, W14 8UD.
2.Accounting policies
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 ('FRS 102') and the Companies Act 2006 and The requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
The following principal accounting policies have been applied:
Management Fees Represent fees receivable for investment management services, exclusive of Value Added Tax, which are recognised on an accrual basis.
Other income relates to amounts accrued from the Research Payment Account for research expenses incurred during the period.
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Notes to the financial statements
For the period ended 31 March 2022
2.Accounting policies (continued)
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.
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Notes to the financial statements
For the period ended 31 March 2022
2.Accounting policies (continued)
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Notes to the financial statements
For the period ended 31 March 2022
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Notes to the financial statements
For the period ended 31 March 2022
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Notes to the financial statements
For the period ended 31 March 2022
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Notes to the financial statements
For the period ended 31 March 2022
An analysis of changes in net debt has not been presented as all of the entity’s cash flows relate to movements in
cash, and the entity has no items to include in such an analysis other than the cash flows in the Statement of cash flows.
There were no contingent liabilities at 31 March 2022.
The LLP operated a defined contributions pension scheme. The assets of the scheme are held separately from those of the LLP in an independently administered fund. The pension cost charge represents contributions payable by the LLP to the fund and amounted to £1,253. £1,253 of contributions were payable to the fund at 31 March 2022.
The ultimate controlling party of the LLP was
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