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Registered number: 04014398














MACROCAPITAL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

 
MACROCAPITAL LIMITED
 
 
COMPANY INFORMATION


Directors
M Hanes 
H Hanes 
P Russo 




Company secretary
M Hanes



Registered number
04014398



Registered office
10 Broomwood Road

London

SW11 6HT




Independent auditors
Sopher + Co LLP
Chartered Accountants & Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD





 
MACROCAPITAL LIMITED
 

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


 
MACROCAPITAL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

Introduction
 
Macrocapital Limited is a London-based financial services entity authorised and regulated by the Financial Conduct Authority focusing on alternative investment management.  In addition to investment management they also offer advice on investment portfolios.

Business review
 
During the year, we continued to run managed accounts. The largest account with the least complicated strategy, long the equity market, has continued to perform well and is almost up 20% from our previous accounting year's end. The macro-related strategies we launched have also been running with net returns of around 20% per annum and are just about to be long enough to be marketed. 
During the year we have started a substantial for our size upgrade in our trading systems.
We continue to have an appointed representative relationship.

Principal risks and uncertainties
 
Overview
The Board of directors is responsible for determining the level of risk acceptable to the Company.  The Company seeks to mitigate its risk through the application of strict limits and controls and a monitoring process at operational level.  This is subject to a review at regular board meetings. 
Market risk
In its discretionary business, the Company is currently exposed very little as a lot of the portfolio is un-invested.  Strict investment limits are applied to control risk. 
Foreign currency risk
The Company has  exposure to the USD/GBP fx as income is receivable is in USD.
Interest rate risk
The Company has no debt so Interest rate risk is from its cash deposits which earn interest on what is effectively a floating rate basis. 

Financial key performance indicators
 
Given the straight forward nature of the business, the Company's directors are of the opinion that analysis using financial key performance indicator is not necessary for an understanding of the development, performance, and position of the business.

Remuneration Code
 
In accordance with the rules of the Financial Conduct Authority, the Company has made available information on its Remuneration Code. This information is available on request from the Compnay.

Page 1

 
MACROCAPITAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Directors' statement of compliance with duty to promote the success of the Company
 
The Board of Directors of Macrocapital Limited consider that they have acted in the way 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 (having regard to the stakeholders and matters set out in S172(1)(a-f) of the Act) in the decisions taken during the financial year ended 30 June 2023.
Consideration of long-term consequences are an inherent part of the Company's decision-making processes. As a privately-owned company, the Board considers that the interests of the Company and its shareholder are aligned in seeking sustainable value creation over the longer term through the company's operations, promoting long term strategic decision-making. These factors also drive a continuing focus on the maintenance of durable relationships with stakeholders, built on the company's reputation with clients and suppliers.
The Company is regulated by the Financial Conduct Authority in the conduct of its investment business and must do so in good faith and with due diligence.
The Company operates in a sector characterised by long term relationships with stakeholders. Maintaining a reputation for high standards of business conduct is vital and the Company expects all members of the supply chain to always act with integrity, acting openly, honestly and ethically. The Company has zero tolerance to fraud and consistently maintains effective oversight and scrutiny processes, executed with independence and impartiality. Integrity is underpinned with policies in relation to bribery and corruption, data protection, equality, diversity and inclusion, fraud and whistleblowing, each of which is reinforced through appropriate measures.


This report was approved by the board on 20 October 2023 and signed on its behalf.



M Hanes
Director

Page 2

 
MACROCAPITAL LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The Directors present their report and the financial statements for the year ended 30 June 2023.

Directors

The Directors who served during the year were:

M Hanes 
H Hanes 
P Russo 

Results and dividends

The loss for the year, after taxation, amounted to £20,735 (2022 - profit £21,181).

The Directors do not recommend any dividends.

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 judgments 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.

Future developments

The Company remains confident that it is well-positioned to take advantage of opportunities in the marketplace for the provision of investment management services.
The macro-related strategies are very much in demand and in a world of increased volatility should perform well. Our head trader has already passed his Finra NFA series 3 and in the coming months, we expect to register Macrocapital as a CTA as well with some CFTC section 4.7  exemptions so that we can potentially manage some US investor's money.

Page 3

 
MACROCAPITAL LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Engagement with employees

The Company has continued throughout the year to provide employees with relevant information and to seek their views on matters of common concern. Priority is given to ensuring that employees are aware of all significant matters affecting the Company's performance and of any significant organisational changes.

Engagement with suppliers, customers and others

The Company does not confirm to any code or standard regarding payment practice.  However, it is the Company's policy to settle the terms of payment with suppliers when business is agreed, to ensure that suppliers are made aware of them and to pay invoices in accordance with these terms.

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 Directors are aware, there is no relevant audit information of which the Company's auditors are unaware, and
the Directors have taken all the steps that ought to have been taken as Directors in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Sopher + Co 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 on 20 October 2023 and signed on its behalf.
 





M Hanes
Director

Page 4

 
MACROCAPITAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MACROCAPITAL LIMITED

Opinion


We have audited the financial statements of Macrocapital Limited (the 'Company') for the year ended 30 June 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 30 June 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

 
MACROCAPITAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MACROCAPITAL LIMITED (CONTINUED)

Other information


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


In connection with our audit of the financial statementsour 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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

 
MACROCAPITAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MACROCAPITAL LIMITED (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:

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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of similar businesses; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Company’s remuneration policies. 

To address the risk of fraud through management bias and override of controls, we: 
 
performed analytical procedures to identify any unusual or unexpected relationships; 
tested journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 
agreeing financial statement disclosures to underlying supporting documentation; 
reading the minutes of meetings of those charged with governance; 
enquiring of management as to actual and potential litigation and claims; and 
reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors. 

 
Page 7

 
MACROCAPITAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MACROCAPITAL LIMITED (CONTINUED)


There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. 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. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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 Auditors' 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 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.





Sean Brennan FCCA (Senior Statutory Auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

20 October 2023
Page 8

 
MACROCAPITAL LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
Note
£
£

  

Turnover
 4 
27,746
11,300

Cost of sales
  
(1,528)
(1,875)

Gross profit
  
26,218
9,425

Administrative expenses
  
(52,354)
(34,213)

Other operating income
 5 
-
1,308

Operating loss
 6 
(26,136)
(23,480)

Investment income
  
-
37,874

Interest receivable and similar income
 11 
339
10

(Loss)/profit before tax
  
(25,797)
14,404

Tax on (loss)/profit
 12 
5,062
6,777

(Loss)/profit for the financial year
  
(20,735)
21,181

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

 
MACROCAPITAL LIMITED
REGISTERED NUMBER:04014398

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
34,954
26,035

Current assets
  

Debtors: amounts falling due within one year
 14 
53,588
49,093

Bank and cash balances
  
45,994
77,088

  
99,582
126,181

Current liabilities
  

Creditors: amounts falling due within one year
 15 
(13,827)
(10,772)

Net current assets
  
 
 
85,755
 
 
115,409

  

Net assets
  
120,709
141,444


Capital and reserves
  

Called up share capital 
 17 
380,000
380,000

Profit and loss account
 18 
(259,291)
(238,556)

  
120,709
141,444


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 October 2023.




M Hanes
Director

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

Page 10

 
MACROCAPITAL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022
380,000
(238,556)
141,444



Loss for the year
-
(20,735)
(20,735)


At 30 June 2023
380,000
(259,291)
120,709



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 July 2021
380,000
42,395
(250,737)
171,658



Profit for the year
-
-
21,181
21,181

Transfer to/from profit and loss account
-
9,000
(9,000)
-

Other movement
-
(51,395)
-
(51,395)


At 30 June 2022
380,000
-
(238,556)
141,444


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

Page 11

 
MACROCAPITAL LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(20,735)
21,181

Adjustments for:

Depreciation of tangible assets
8,731
4,994

Profit on disposal of investment property
-
(37,874)

Government grants
-
(1,308)

Interest received
(339)
(10)

Taxation charge
(5,062)
(6,777)

Decrease in debtors
567
4,714

Increase/(decrease) in creditors
3,055
(731)

Net cash generated from operating activities

(13,783)
(15,811)


Cash flows from investing activities

Purchase of tangible fixed assets
(17,650)
(20,941)

Sale of investment properties
-
60,479

Government grants received
-
1,308

Interest received
339
10

Net cash from investing activities

(17,311)
40,856


Cash and cash equivalents at beginning of year
77,088
52,043

Cash and cash equivalents at the end of year
45,994
77,088


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
45,994
77,088


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

Page 12

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

Macrocapital Limited is a private company limited by shares and incorporated in England and Wales, with its registered office at 10 Broomwood Road, London, SW11 6HT.

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 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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

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.
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 the Statement of Comprehensive Income.

 
2.3

Turnover

Turnover 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. Turnover 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:
Investment management fees are based on an annual contract and are recognised on a straight line basis.
Performance fees are recognised when they are earned.
Advisory fees are recognised when the services are provided.

 
2.4

Government grants

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure

Page 13

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.8

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.

Page 14

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)


2.8
Tangible fixed assets (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:

Plant and machinery
-
20%
Fixtures and fittings
-
20%
Computer equipment
-
33%

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.

 
2.9

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.10

Financial instruments

Basic financial instruments include trade and other debtors, trade and other creditors, cash and bank balances, bank and related party loans.
Trade and other debtors are recognised initially at the transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade and other debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest.
Interest bearing borrowings classified as basic financial instruments are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, they are stated at amortised cost using the effective interest method.
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Page 15

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company’s accounting policies described above, management are required to make judgments, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may be different.
These estimates are reviewed on an ongoing basis. Revisions to these estimates are recognised in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both future and current periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Depreciation
Depreciation has been calculated on the fixed assets; the residual value and life of the asset has been estimated by the Directors.
Accruals
The Directors review the expected expenses based on their knowledge of the business and provide for these accordingly.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Advisory fees
27,183
9,761

Performance fees
563
1,539

27,746
11,300


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
7,888
8,292

Rest of Europe
-
3,007

Rest of the world
19,859
-

27,747
11,299


Page 16

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

5.


Other operating income

2023
2022
£
£

Government grants receivable
-
1,308



6.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Pensions
-
166

Exchange differences
482
(76)

Depreciation
8,731
4,994


7.


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
6,243
5,550

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

All non-audit services not included above
4,235
4,000
Page 17

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

8.


Employees

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


2023
2022
£
£

Wages and salaries
9,999
12,776

Social security costs
77
698

Cost of defined contribution scheme
-
166

10,076
13,640


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


        2023
        2022
            No.
            No.







Directors / Administration
3
3


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
9,999
12,776



10.


Key Management Compensation

Key management is made up of solely the Director's and compensation paid to them during the year totaled £9,999 (2022 - £12,776).


11.


Interest receivable

2023
2022
£
£


Other interest receivable
339
10

Page 18

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

12.


Taxation


2023
2022
£
£



Deferred tax


Origination and reversal of timing differences
(5,062)
(6,777)


Factors affecting tax charge for the year

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

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(25,797)
14,404


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(4,901)
2,737

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
(373)

Capital allowances for year in excess of depreciation
(2,019)
(3,187)

Deferred tax
(5,062)
(6,777)

Unrelieved tax losses carried forward
6,920
823

Total tax charge for the year
(5,062)
(6,777)


Factors that may affect future tax charges

The Company has estimated losses of £313,230 (2022 - £276,806) available to carry forward against future trading profits.

Page 19

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

13.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 July 2022
27,404
2,074
9,870
39,348


Additions
13,888
93
3,669
17,650



At 30 June 2023

41,292
2,167
13,539
56,998



Depreciation


At 1 July 2022
4,371
670
8,272
13,313


Charge for the year on owned assets
7,176
384
1,171
8,731



At 30 June 2023

11,547
1,054
9,443
22,044



Net book value



At 30 June 2023
29,745
1,113
4,096
34,954



At 30 June 2022
23,033
1,404
1,598
26,035


14.


Debtors

2023
2022
£
£


Trade debtors
141
621

Other debtors
88
404

Prepayments and accrued income
487
258

Deferred taxation
52,872
47,810

53,588
49,093


Page 20

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,482
-

Other taxation and social security
1,431
10

Other creditors
1,389
680

Accruals and deferred income
9,525
10,082

13,827
10,772



16.


Deferred taxation




2023


£






At beginning of year
47,810


Charged to profit or loss
5,062



At end of year
52,872

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(6,641)
(4,783)

Tax losses carried forward
59,513
52,593

52,872
47,810


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



380,000 (2022 - 380,000) Ordinary shares of £1 each
380,000
380,000


Page 21

 
MACROCAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

18.


Reserves

Revaluation reserve

The revaluation reserve contains the movement of revaluations carried out on the Company's investment property. It is a non-distributable reserve

Profit and loss account

The profit and loss reserve contains the cumulative balance of retained profit and losses since the Company started trading. It is a distributable reserve.


19.


Related party transactions

During the year, the Company made sales of £nil (2022 - £90) from Diversified Growth Ventures Limited, a company in which M Hanes was a director.
During the year, the Company made sales of £nil (2022 - £543) from Diversified Investments Limited, a company in which E Chalikia was a director.
During the year, the Company made sales of £1,270 (2022 - £78) from Ready Listener, a company in which M Hanes is a director.

 
Page 22