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Registered number: 11679239









3 W EQUITY LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

 
3 W EQUITY LTD
 
 
COMPANY INFORMATION


Directors
D C Mitchell 
G D Taylor 




Registered number
11679239



Registered office
One Park Row

Leeds

LS1 5HN




Independent auditors
BKL Audit LLP
Chartered Accountants & Statutory Auditor

35 Ballards Lane

London

N3 1XW





 
3 W EQUITY LTD
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 8
Statement of Comprehensive Income
 
 
9
Statement of Financial Position
 
 
10
Statement of Changes in Equity
 
 
11
Statement of Cash Flows
 
 
12
Notes to the Financial Statements
 
 
13 - 22


 
3 W EQUITY LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

Introduction
 
The Directors present their strategic report for 3W Equity Ltd for the year ended 31st January 2023. 
The company provides investment management services. 

Business review
 
3W Equity trades as Traditum Equity. It provides investment management services to clients investing in private equity. Its core competitive advantage is the ability to provide a bespoke and tax efficient investment service to clients and flexible funding structures to companies in which investments are made. 
The company vision is to establish a long-standing relationship driven private equity house. 
The year 2022 saw the company establish is operating systems and compliance functions.
 
In the year the company made several investments and built client relationships, building on the success of the operating platform established the prior year and at the start of this trading year. 
The year concluded with an issue of new share capital to existing shareholders and new shareholders.
 
The strategic use of the investment was the expansion of the wages overhead to invest in the client services team, the brand and marketing functions. 
The Directors strategy is to continually re-invest growth in income from client attraction and deals completed. Investment will be made in people, brand, and systems.
  
Significant profits are generated to the company when investments made generate large income streams by being sold. This requires a life cycle of investments to be competed and no significant exit from an investment is planned for the next two financial years. 
Shareholder value is generated from recuring funds under management fees from deals being completed which provides regular income and the discounted potential of the future capital exits. 

Principal risks and uncertainties
 
Risk and uncertainties continue to be assessed by the board. The company is exposed to risk from the macro-economic conditions which can affect the attraction of new clients. 
The board focus on the company target market to mitigate these risks, which is the investing sophisticated entrepreneur, where the company targets the gap in the market. 
There are further risks associated with highly paid client service team members performing and generating the income to achieve the strategic growth required. The board monitor this performance, and the costs associated with regular appraisals.
Taxation benefits from investing in trading companies are currently advantageous to the target client market. The board do not see any change in such taxation reliefs from any major political party, but the risk associated with any potential change in legislation is monitored by the board.

Page 1

 
3 W EQUITY LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Financial key performance indicators
 
Turnover £1,193,849 (2022: £719,411) = +70%
EBITDA -£252,244 (2022: -£182,165) = -38%

Other key performance indicators
 
Cumulative Invested Capital Jan 22 (£5,432k) Jan 23 (£9,774k) = +80%
Cumulative Invested Clients Jan 22 (5) Jan 23 (12) = +140%
Cumulative Completed Deals Jan 22 (3) Jan 23 (8) = +167%

Directors' statement of compliance with duty to promote the success of the Company
 
Shareholders 
The Directors have regular contact with the shareholders. 
Clients 
The company’s clients are segmented into three different markets. Firstly, family offices and semi-institutional investors. Secondly, semi-passive clients who wish to be involved interact with the investments made. Thirdly, passive clients who wish to have a client relationship and understand the investments and their performance but wish for no board involvement. 
Investments 
The company targets investments in a range of sectors and risk and return scenarios. Its core focus is profitable trading businesses with a strong management team and growth story. The company focuses on investment size of £1-£10m. 
Suppliers 
The company has various key supplier relationships with which the Directors work closely. They are no business risks associated with the supply chain. 
The Environment 
The company is committed to the sustainability of the environment fitting with the vision of building a business which is established for generations and having client relationships which mirror such longevity. The company actively seeks and invests in ESG investments as part of it strategy, believing innovation and investment will address climate change issues. 


This report was approved by the board and signed on its behalf.



D C Mitchell
Director

Date: 26 May 2023

Page 2

 
3 W EQUITY LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The Directors present their report and the financial statements for the year ended 31 January 2023.

Directors' responsibilities statement

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 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 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 2006They 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.

Principal activity

The principal activity of 3 W Equity Ltd (the "Company") is that of providing investment advisory services. The
Company is authorised and regulated by the Financial Conduct Authority.

Results and dividends

The loss for the year, after taxation, amounted to £254,898 (2022 - loss £182,598).

No dividends were paid during the year.

Directors

The Directors who served during the year were:

D C Mitchell 
G D Taylor 

Future developments

2023 and 2024 will see the development of our discretionary clients investments in Health tech and Agriculture and further investment into our clients operating platform.

Page 3

 
3 W EQUITY LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Disclosure of information to auditors

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.

Auditors

During the year BKL Audit LLP was appointed as auditor to fill a casual vacancy.
Under section 487(2) of the Companies Act 2006BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





D C Mitchell
Director

Date: 26 May 2023

Page 4

 
3 W EQUITY LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3 W EQUITY LTD
 

Opinion


We have audited the financial statements of 3 W Equity Ltd (the 'Company') for the year ended 31 January 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 January 2023 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.


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 Auditors' 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 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.


Conclusions relating to going concern


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.


Page 5

 
3 W EQUITY LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3 W EQUITY LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The Directors are 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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
 

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.


Responsibilities of directors
 

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.


Page 6

 
3 W EQUITY LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3 W EQUITY LTD (CONTINUED)


Auditors' 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 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.


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:
 
Enquiring of management around actual and potential litigation and claims
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations
Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias
Enquiring of company staff in finance and compliance functions to identify any instances of noncompliance with laws and regulations


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
Page 7

 
3 W EQUITY LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 3 W EQUITY LTD (CONTINUED)


disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Other matters 
 

In accordance with the Companies Act 2006 the prior year financial statements were not audited. The comparative information in these financial statements is unaudited. 


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 2006Our 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.





David Landau FCA (Senior Statutory Auditor)
  
for and on behalf of
BKL Audit LLP
 
Chartered Accountants
Statutory Auditor
  
London

27 May 2023
Page 8

 
3 W EQUITY LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
1,193,849
719,411

Cost of sales
  
(242,832)
(49,110)

Gross profit
  
951,017
670,301

Administrative expenses
  
(1,205,871)
(852,878)

Operating loss
 5 
(254,854)
(182,577)

Interest payable and similar expenses
  
(44)
(21)

Loss before tax
  
(254,898)
(182,598)

Loss for the financial year
  
(254,898)
(182,598)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 22 form part of these financial statements.

Page 9

 
3 W EQUITY LTD
REGISTERED NUMBER: 11679239

STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
7,421
1,237

  
7,421
1,237

Current assets
  

Debtors: amounts falling due within one year
 12 
1,362,983
312,354

Cash at bank and in hand
 13 
893,936
468,858

  
2,256,919
781,212

Creditors: amounts falling due within one year
 14 
(179,057)
(42,268)

Net current assets
  
 
 
2,077,862
 
 
738,944

Total assets less current liabilities
  
2,085,283
740,181

  

Net assets
  
2,085,283
740,181


Capital and reserves
  

Called up share capital 
  
2,950,001
1,350,001

Profit and loss account
  
(864,718)
(609,820)

  
2,085,283
740,181


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




D C Mitchell
Director

Date: 26 May 2023

The notes on pages 13 to 22 form part of these financial statements.

Page 10

 
3 W EQUITY LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2021
1,350,000
(427,222)
922,778


Comprehensive income for the year

Loss for the year
-
(182,598)
(182,598)
Total comprehensive income for the year
-
(182,598)
(182,598)

Shares issued during the year
1
-
1



At 1 February 2022 (as previously stated)
1,350,001
(518,920)
831,081

Prior year adjustment - correction of error
-
(90,900)
(90,900)


At 1 February 2022 (as restated)
1,350,001
(609,820)
740,181


Comprehensive income for the year

Loss for the year
-
(254,898)
(254,898)
Total comprehensive income for the year
-
(254,898)
(254,898)


Contributions by and distributions to owners

Shares issued during the year
1,600,000
-
1,600,000


At 31 January 2023
2,950,001
(864,718)
2,085,283


The notes on pages 13 to 22 form part of these financial statements.

Page 11

 
3 W EQUITY LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(254,898)
(182,598)

Adjustments for:

Depreciation of tangible assets
2,610
412

Interest paid
44
21

Decrease/(increase) in debtors
49,371
(143,528)

Increase/(decrease) in creditors
136,789
(56,100)

Net cash generated from operating activities

(66,084)
(381,793)


Cash flows from investing activities

Purchase of tangible fixed assets
(8,794)
(1,649)

Net cash from investing activities

(8,794)
(1,649)

Cash flows from financing activities

Issue of Ordinary shares
500,000
1

Interest paid
(44)
(21)

Net cash used in financing activities
499,956
(20)

Net increase/(decrease) in cash and cash equivalents
425,078
(383,462)

Cash and cash equivalents at beginning of year
468,858
852,320

Cash and cash equivalents at the end of year
893,936
468,858


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
893,936
468,858

893,936
468,858


The notes on pages 13 to 22 form part of these financial statements.

Page 12

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


General information

The principal activity of 3 W Equity Ltd (the "Company") is that of providing investment advisory services. The Company is authorised and regulated by the Financial Conduct Authority. 
 The Company is a private company limited by shares and is incorporated in England and Wales. 
The Registered Office address is One Park Row, Leeds, United Kingdom, LS1 5HN. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 ("FRS 102") 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 judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.
 
The directors have reviewed forecasts and budgets in light of the above and are confident the Company has adequate resources to continue in operational existence for the foreseeable future and that it is appropriate to continue to use the going concern basis for the preparation of these financial statements.

Page 13

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Sterling.

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.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.6

Pensions

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 the Statement of Comprehensive Income 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.

 
2.7

Tangible fixed assets

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:

Computer equipment
-
25%
Straight Line

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 the Statement of Comprehensive Income.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.9

Financial instruments

The company only enters into basic financial instruments that result in the recognition of financial assets and liabilities, like trade and other debtors and creditors, and loans to and from related parties.
(i) Financial assets
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement consitutes a financing transaction, where the transaction is measured at the
Page 15

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)


2.9
Financial instruments (continued)

present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of Comprehensive Income.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the year end and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. 
No judgements or material estimation have been used in the process of applying the above accounting
policies.

Page 16

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

4.


Turnover

The whole of the turnover is attributable to investment advisory services.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
1,193,849
719,411

1,193,849
719,411



5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Depreciation
2,610
412


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
7,750
-

Fees payable to the Company's auditors and their associates in respect of:

Audit-related assurance services
1,250
-

Taxation compliance services
1,250
-

All non-audit services not included above
4,000
-
Page 17

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

7.


Employees

Staff costs, including Directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
447,930
244,837

Social security costs
55,487
29,517

Cost of defined contribution scheme
130,520
71,578

633,937
345,932


The average monthly number of employees, including the Directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
7
4


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
93,544
95,003

Company contributions to defined contribution pension schemes
73,208
-

166,752
95,003


During the year retirement benefits were accruing to no Directors (2022 - NIL) in respect of defined contribution pension schemes.


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
44
21

44
21

Page 18

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

10.


Taxation


2023
2022
£
£



Total current tax
-
-

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(254,898)
(182,598)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(48,431)
(34,694)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,610
1,276

Unrelieved tax losses carried forward
45,821
33,418

Total tax charge for the year
-
-


Factors that may affect future tax charges

The UK Government announced its intention to increase the rate of UK corporation tax from 19% to 25% with effect from 1 April 2023. The increase in the rate of UK corporation tax was enacted in the Finance Act 2021 which received Royal Assent on 10 June 2021. 
There are tax losses of approximately £602,000 available to carry forward against future taxable profits. 

Page 19

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

11.


Tangible fixed assets





Computer equipment

£



Cost or valuation


At 1 February 2022
1,649


Additions
8,794



At 31 January 2023

10,443



Depreciation


At 1 February 2022
412


Charge for the year on owned assets
2,610



At 31 January 2023

3,022



Net book value



At 31 January 2023
7,421



At 31 January 2022
1,237


12.


Debtors

As restated
2023
2022
£
£


Trade debtors
195,160
307,353

Other debtors
1,108,739
5,001

Prepayments and accrued income
59,084
-

1,362,983
312,354


Page 20

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
893,936
468,858

893,936
468,858



14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
83,937
13,021

Other taxation and social security
27,797
23,570

Other creditors
36,489
-

Accruals and deferred income
30,834
5,677

179,057
42,268



15.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,950,000 (2022 - 1,350,000) Ordinary shares of £1 each
2,950,000
1,350,000
1 (2022 - 1) Ordinary B share of £1
1
1

2,950,001

1,350,001


During the year, the Company issued 1,600,000 ordinary shares of £1 each at par.
The Ordinary and B Ordinary shares rank pari passu in all respects save that the holders of the B Ordinary share shall have no rights to capital in the event of a sale or winding up.


16.


Reserves

Profit and loss account

Comprises current and previous years retained profits and losses.

Page 21

 
3 W EQUITY LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

17.


Prior year adjustment

The comparative information in these financial statements have been restated from the figures previously reported in the prior year financial statements to reflect the following:
- an increase in administrative of £90,900 for management charge fees previously held within other debtors. 
The impact of this adjustment has decreased profit and net assets by £90,900. 


18.


Pension commitments

The Company operates a defined contribution 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 fund and amounted to £130,520 (2022: £71,578). Contributions totalling £13,347 (2022: £Nil) were payable to the fund at the reporting date.


19.


Related party transactions

Included within other debtors is a balance of £272,700 (2022:£90,901) owed by a company with a director in common. 
Included within administrative expenses is £22,500 (2022:£14,250) for professional services from a close relative of one of the directors. 


20.


Controlling party

There is no ultimate controlling party. 

 
Page 22