Company Registration No. 05989376 (England and Wales)
ATOM CAPITAL LIMITED
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
ATOM CAPITAL LIMITED
COMPANY INFORMATION
Director
Ms A Choraria
Secretary
Mr S Choraria
Company number
05989376
Registered office
Moss House
15-16 Brook's Mews
London
W1K 4DS
Auditor
Mercer & Hole
21 Lombard Street
London
EC3V 9AH
ATOM CAPITAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
ATOM CAPITAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -

The director presents the strategic report for the year ended 31 December 2021.

Fair review of the business

Turnover has decreased by 32% to £8,193,598 (2020: £12,033,575), profit before tax has decreased by 68% to £1,629,457 (2020: £5,026,299). Net assets at the year-end stand at £3,678,778 (2020: £3,615,069) which is a increase of 2%.

 

Current asset investments at the year-end stands at £1,683,152 (2020: £1,943,582) which shows a decrease from the prior year. At the year-end, Debtors have fallen by 4% amounting to £907,686 (2020: £945,006) and Cash at bank and in hand stands at £2,300,736 (2020: £1,594,706).

Principal risks and uncertainties

Leaving the EU

Whilst there has been no immediate impact of the decision we remain watchful with regard to any potential impact on trading conditions.

 

Market risk

The company’s performance is linked to the market risk attached to the financial instruments traded. Management, and individual traders, continually monitor market risk to minimise the potential impacts.

 

Credit risk

Credit risk refers to the potential risk that bankers or customers fail to meet their obligations as they fall due.

 

Liquidity risk

The liquidity policy is to maintain sufficient liquid resources to cover cash flow imbalances and fluctuations in fees received/receivable. The company maintains cash balances at its bankers and short term investments to cover liquidity risk.

 

Operational risk

Operational risk is the risk of loss arising from failed or inadequate internal processes or systems, human error or other factors. The risk is managed by the management who have responsibility for putting in place appropriate controls for the business.

 

Business risk

Business risk is the risk that the company may not be able to carry out its business plan and could therefore suffer losses if its income falls. This is a risk that all businesses face. Management continuously monitor income and expenditure levels and adjust their plans accordingly.

 

Regulatory and conduct risk

There is a risk that changes to laws and regulations will impact the company. Management monitors legal and regulatory developments on an ongoing basis and seeks to make such changes in its business processes and procedures that are necessary to continue to comply with the laws and regulations to which it is subject.

 

The company has implemented strategies where possible to minimise the impact of these risks.

 

Coronavirus

After the outbreak of Coronavirus Disease 2019 (COVID-19 pandemic) in early 2020, a series of control measures have been and continue to be implemented. The director pays close attention to the development of the COVID-19 pandemic and evaluate its impact on the Company's financial positions and operating results. As at the date of approval of these financial statements the director is not aware of any material adverse effects on the financial statements as a result of the COVID-19 outbreak.

 

ATOM CAPITAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Development and performance

The company monitors certain key metrics.

 

 

2021

2020

 

 

 

Turnover

£8.2m

£12.0m

Cost of sales

£1.15m

£0.35m

 

 

 

Profit before tax

£1.63m

£5.03m

 

 

 

 

Future developments

The director expects levels of profit to continue in line with the current year. Future years are not expected to bring any new major developments.

Section 172 statement

The director is aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:

 

 

(“the s.172 matters”)

The director of the Company has sought to balance the needs of its members with the s.172 matters throughout the year, ensuring that the Company’s reputation for high standards of conduct are maintained and through strong relationships with employees and colleagues. The director of the Company has a duty to promote the success of the company, and this relies on smooth operations and the support and joint efforts of management. Thus, effective communication and interaction are indispensable in the company’s business operations.

On behalf of the board

..............................
Ms A Choraria
Director
Date: .............................................
ATOM CAPITAL LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -

The director presents her annual report and financial statements for the year ended 31 December 2021.

Principal activities

The principal activity of the company continued to be that of a FCA regulated Securities and Futures Firm.

Results and dividends

The results for the year are set out on page 8.

An interim ordinary dividend was paid amounting to £775,000 (2020: £3,675,000). The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Ms A Choraria
Auditor

The auditor, Mercer & Hole, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Ms A Choraria
Director
27 April 2022
ATOM CAPITAL LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 the director must not approve the financial statements unless she is 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 director is required to:

 

 

The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. She is 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.

ATOM CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ATOM CAPITAL LIMITED
- 5 -
Opinion

We have audited the financial statements of Atom Capital Limited (the 'company') for the year ended 31 December 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

Basis for opinion

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

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ATOM CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ATOM CAPITAL LIMITED
- 6 -
Matters on which we are required to report by exception

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 and the director's report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches under the firm's Financial Conduct Authority registration and General Data Protection Regulations, and we considered the extent to which non-compliance may 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.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principle risks were related to posting inappropriate entries including journals to misstate revenue or expenditure, and management bias.

ATOM CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ATOM CAPITAL LIMITED
- 7 -

Audit procedures performed by the engagement team included:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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 her 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 company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Crook BA ACA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole
27 April 2022
Chartered Accountants
Statutory Auditor
21 Lombard Street
London
EC3V 9AH
ATOM CAPITAL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
8,193,598
12,033,575
Cost of sales
(1,150,213)
(347,661)
Gross profit
7,043,385
11,685,914
Administrative expenses
(5,426,488)
(6,673,517)
Other operating income
2,218
8,610
Operating profit
4
1,619,115
5,021,007
Interest receivable and similar income
8
28,488
57,464
Interest payable and similar expenses
9
(18,146)
(52,172)
Profit before taxation
1,629,457
5,026,299
Tax on profit
10
(290,748)
(957,141)
Profit for the financial year
1,338,709
4,069,158

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ATOM CAPITAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
£
£
Profit for the year
1,338,709
4,069,158
Other comprehensive income
-
-
Total comprehensive income for the year
1,338,709
4,069,158
ATOM CAPITAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 10 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
12
121,649
7,989
Investments
13
187,500
187,500
309,149
195,489
Current assets
Debtors
16
907,687
945,006
Investments
17
1,683,152
1,943,582
Cash at bank and in hand
2,300,736
1,594,706
4,891,575
4,483,294
Creditors: amounts falling due within one year
18
(1,521,946)
(1,063,714)
Net current assets
3,369,629
3,419,580
Net assets
3,678,778
3,615,069
Capital and reserves
Called up share capital
20
100,000
100,000
Profit and loss reserves
3,578,778
3,515,069
Total equity
3,678,778
3,615,069
The financial statements were approved and signed by the director and authorised for issue on 27 April 2022
Ms A Choraria
Director
Company Registration No. 05989376
ATOM CAPITAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2020
100,000
3,120,911
3,220,911
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
4,069,158
4,069,158
Dividends
11
-
(3,675,000)
(3,675,000)
Balance at 31 December 2020
100,000
3,515,069
3,615,069
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
1,338,709
1,338,709
Dividends
11
-
(1,275,000)
(1,275,000)
Balance at 31 December 2021
100,000
3,578,778
3,678,778
ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information

Atom Capital Limited is a private company limited by shares incorporated in England and Wales. The registered office is Moss House, 15-16 Brook's Mews, London, W1K 4DS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared on the going concern basis and under the historical cost convention. The principle accounting policies adopted are set out below.

The financial statements of the company are consolidated in the financial statements of AC Investment Holdings Limited. These consolidated financial statements may be obtained from Companies House at 80 Petty France, Westminster, London, SW1H 9EX.

1.2
Going concern

The global COVID-19 pandemic (C19) has introduced general uncertainty for all businesses. The director has assessed the impact of C19 on the ability of the trueCompany to continue as a going concern. Whilst the C19 outbreak is evolving day-to-day and continues to confer a level of general uncertainty in the market, the Company has seen a strong trading performance during the pandemic.

 

Working practices have evolved, as evidenced by increased remote working and the adoption of social distancing practices in the office. The Company continues to monitor UK Government advice and will continue to adapt working practices in line with any guidance.

 

The director has considered the latest information published by the UK Government relating to C19 and has assessed the likely impacts of C19 on the Company’s future trading. The director has considered the likely increase in client advice and the potential for the addition of new clients, given the increased need for the Company's services during periods of heightened uncertainty. At the time of approving the financial statements, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.

 

Accordingly, at the date of approval of these financial statements, the director has prepared the financial statements on the going concern basis.

1.3
Turnover

Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

If, at the balance sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the company), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the balance sheet date are carried forward as work in progress.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
20% straight line
Motor vehicles
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the director considers that there are no judgements or key sources of estimation uncertainties which impact on the financial statements.

ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2021
2020
£
£
Turnover analysed by class of business
Income from sale of investments
8,193,598
12,033,575
2021
2020
£
£
Other significant revenue
Interest income
18,651
38,538
Dividends received
13,186
15,188
2021
2020
£
£
Turnover analysed by geographical market
UK income
4,084,525
4,114,189
EU income
2,685,437
3,914,568
Rest of the World income
1,423,636
4,004,818
8,193,598
12,033,575
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
46,787
(6,871)
Depreciation of owned tangible fixed assets
31,267
2,384
Operating lease charges
11,654
12,010
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
10,000
ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
Director
1
1
Administration
2
1
Total
3
2

Their aggregate remuneration comprised:

2021
2020
£
£
Wages and salaries
26,500
10,600
Pension costs
40,000
-
0
66,500
10,600
7
Director's remuneration
2021
2020
£
£
Remuneration for qualifying services
8,000
8,000
Company pension contributions to defined contribution schemes
40,000
-
0
48,000
8,000
ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
61
1,684
Other interest income
18,590
36,854
Total interest revenue
18,651
38,538
Other income from investments
Dividends received
13,186
15,188
31,837
53,726
Income from fixed asset investments
Income from other fixed asset investments
(3,349)
3,738
Total income
28,488
57,464

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
61
1,684
9
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Dividends paid
18,146
52,172
10
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
290,748
957,141
ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
10
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2021
2020
£
£
Profit before taxation
1,629,457
5,026,299
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
309,597
954,997
Tax effect of expenses that are not deductible in determining taxable profit
5,161
2,144
Other tax adjustments
(2,291)
-
0
Capital allowances in excess of depreciation
(21,719)
-
0
Taxation charge for the year
290,748
957,141
11
Dividends
2021
2020
£
£
Interim paid
1,275,000
3,675,000
12
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2021
36,500
5,000
41,500
Additions
2,161
142,766
144,927
At 31 December 2021
38,661
147,766
186,427
Depreciation and impairment
At 1 January 2021
33,511
-
0
33,511
Depreciation charged in the year
1,714
29,553
31,267
At 31 December 2021
35,225
29,553
64,778
Carrying amount
At 31 December 2021
3,436
118,213
121,649
At 31 December 2020
2,989
5,000
7,989
ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
13
Fixed asset investments
2021
2020
£
£
Unlisted investments
187,500
187,500
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2021 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Atom Capital (UK) LLP
15-16 Brook's Mews, London, W1K 4DS
Ordinary
90.36
15
Financial instruments
2021
2020
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
875,126
908,980
Equity instruments measured at cost less impairment
1,800,029
2,040,318
Instruments measured at fair value through profit or loss
70,623
90,764
Carrying amount of financial liabilities
Measured at amortised cost
1,085,607
106,573
16
Debtors
2021
2020
Amounts falling due within one year:
£
£
Other debtors
875,126
915,550
Prepayments and accrued income
32,561
29,456
907,687
945,006
17
Current asset investments
2021
2020
£
£
Listed investments
1,612,529
1,852,818
Unlisted investments
70,623
90,764
1,683,152
1,943,582
Listed investments included above:
Listed investments carrying amount
1,612,529
1,852,818
ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
18
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
22,271
5,489
Amounts owed to group undertakings
971,000
59,000
Amounts owed to undertakings in which the company has a participating interest
39,952
1,984
Corporation tax
436,003
957,141
Other taxation and social security
336
-
0
Other creditors
20,082
20,000
Accruals and deferred income
32,302
20,100
1,521,946
1,063,714
19
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,000
-
20
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021
2020
£
£
Within one year
15,008
14,186
Between two and five years
15,008
-
0
30,016
14,186
ATOM CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
22
Related party transactions
Transactions with related parties
Management charge
2021
2020
£
£
Entities over which the entity has control, joint control or significant influence
5,015,000
6,447,000

During the year, SKC Finance Limited repaid loans of £50,000 (2020: repaid loans of £515,000) to Atom Capital Limited. At the year end, the balance remaining on the loan was £739,526 (2020: £789,526). The company is related to SKC Finance Limited because it is controlled by a close family member of the director. During the year, £15,791 (2020: £26,258) of interest was accrued on this loan. Total accrued interest outstanding at the year end amounted to £116,887 (2020: £101,097).

23
Ultimate controlling party

On 15 June 2020, the company became a wholly owned subsidiary of AC Investment Holdings Limited.

 

AC Investment Holdings Limited, incorporated in England heads the group for which consolidated accounts are prepared and a copy of the accounts may be obtained from Companies House at 80 Petty France, Westminster, London, SW1H 9EX.

The company is ultimately controlled by A Choraria.

2021-12-312021-01-01falseCCH SoftwareCCH Accounts Production 2022.100Ms A ChorariaMr S Choraria059893762021-01-012021-12-3105989376bus:Director12021-01-012021-12-3105989376bus:CompanySecretary12021-01-012021-12-3105989376bus:RegisteredOffice2021-01-012021-12-31059893762021-12-31059893762020-01-012020-12-3105989376core:RetainedEarningsAccumulatedLosses2020-01-012020-12-3105989376core:RetainedEarningsAccumulatedLosses2021-01-012021-12-31059893762020-12-3105989376core:FurnitureFittings2021-12-3105989376core:MotorVehicles2021-12-3105989376core:FurnitureFittings2020-12-3105989376core:MotorVehicles2020-12-3105989376core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3105989376core:CurrentFinancialInstrumentscore:WithinOneYear2020-12-3105989376core:CurrentFinancialInstruments2021-12-3105989376core:CurrentFinancialInstruments2020-12-3105989376core:ShareCapital2021-12-3105989376core:ShareCapital2020-12-3105989376core:RetainedEarningsAccumulatedLosses2021-12-3105989376core:RetainedEarningsAccumulatedLosses2020-12-3105989376core:ShareCapital2019-12-3105989376core:RetainedEarningsAccumulatedLosses2019-12-31059893762019-12-3105989376core:FurnitureFittings2021-01-012021-12-3105989376core:MotorVehicles2021-01-012021-12-310598937612021-01-012021-12-310598937612020-01-012020-12-3105989376core:UKTax2021-01-012021-12-3105989376core:UKTax2020-01-012020-12-310598937622021-01-012021-12-310598937622020-01-012020-12-3105989376core:FurnitureFittings2020-12-3105989376core:MotorVehicles2020-12-31059893762020-12-3105989376core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2021-12-3105989376core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2020-12-3105989376core:CurrentFinancialInstrumentscore:ListedExchangeTraded2021-12-3105989376core:CurrentFinancialInstrumentscore:ListedExchangeTraded2020-12-3105989376core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2021-12-3105989376core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2020-12-3105989376core:Subsidiary12021-01-012021-12-3105989376core:Subsidiary112021-01-012021-12-3105989376core:WithinOneYear2021-12-3105989376core:WithinOneYear2020-12-3105989376core:BetweenTwoFiveYears2021-12-3105989376core:BetweenTwoFiveYears2020-12-3105989376bus:PrivateLimitedCompanyLtd2021-01-012021-12-3105989376bus:FRS1022021-01-012021-12-3105989376bus:Audited2021-01-012021-12-3105989376bus:FullAccounts2021-01-012021-12-31xbrli:purexbrli:sharesiso4217:GBP