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Rhodon Investment Management Limited
























Annual report and financial statements



For the year ended 31 March 2023



Registered number: 11274910

 
Rhodon Investment Management Limited


Company Information


Directors
R C McCormick 
S M Roth 




Registered number
11274910



Registered office
C/O Buzzacott LLP
130 Wood Street

London

EC2V 6DL




Independent auditor
Buzzacott LLP

130 Wood Street

London

EC2V 6DL





 
Rhodon Investment Management Limited


Contents



Page
Directors' report
 
1 - 2
Strategic report
 
3 - 5
Independent auditor's report
 
6 - 9
Statement of comprehensive income
 
10
Statement of financial position
 
11
Statement of changes in equity
 
12
Statement of cash flows
 
13
Notes to the financial statements
 
14 - 25


 
Rhodon Investment Management Limited

 
Directors' report
For the year ended 31 March 2023

The directors present their report together with the Strategic report and the financial statements for the year ended 31 March 2023.

Results and dividends

The profit for the year, after taxation, amounted to £578,332 (2022 -£1,446,774).

The directors did not recommend payment of a dividend during the year.

Directors

The directors who served during the year were:

R C McCormick 
S M Roth 

Directors' responsibilities statement

The directors are responsible for preparing the Directors' report, the Strategic 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.

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Page 1

 
Rhodon Investment Management Limited
 
Directors' report (continued)
For the year ended 31 March 2023

Strategic report

The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be continued in the directors' report. It has done so in respect of future developments, engagement with employees, suppliers, customers and others.

This report was approved by the board on 27 July 2023 and signed on its behalf by:
 





S M Roth
Director

Page 2

 
Rhodon Investment Management Limited


Strategic report
For the year ended 31 March 2023

The directors present their Strategic report of the company for the year ended 31 March 2023.

Principal activities

The principal activity of the company during the year continued to be the provision of fund management services to the Rhodon Diversified Opportunities Master Fund.

Business review
 
The directors are satisfied with the results for the year and expect growth in the future performance of the company. We are pleased to report that we made positive headway in the year.

Principal risks and uncertainties
 
Foreign currency risk
The company's main revenues are received in USD making it susceptible to foreign currency risk but to the extent only of transaction exposure. The company accepts the risk of currency movement and deals with potential earnings volatility.
Liquidity risk
The company is not exposed to significant liquidity risks.
Interest rate risk
The company has interest bearing assets. Interest bearing assets include only cash balances, which earn interest at the
existing market rate.
IFPR
On January 1st 2022 a change to the UK regulations for Investment managers came in to force. The company engaged with its compliance consultants to manage the transition from the previous rules. As per the FCA timeframes this was completed in September 2022. The company did not experience any material impact from the change other than a decrease in the amount of Regulatory Capital that it is requited to maintain. 

Financial key performance indicators
 
Given the nature of the business, the directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.

Page 3

 
Rhodon Investment Management Limited


Strategic report (continued)
For the year ended 31 March 2023

Directors' statement of compliance with duty to promote the success of the company
 
Rhodon Investment Management Ltd was founded by Steve Roth in 2018 as the sole owner. The aim of the company is to successfully run an investment management company.
The board of directors of Rhodon Investment Management Limited consider we have acted in a way which we consider to be fair to all persons, be they individuals, or companies who have a direct, or indirect interest in how we work and the services we provide. We have acted, both individually and together, in a way that we consider in good faith would be the most likely to promote the success of the company. The directors continue to have regard to the interests of the company’s employees, suppliers and investors, including the impact of its activities on the company’s reputation when making decisions.
We recognise our responsibility under section 172 of the UK Companies Act 2006 and the intention of the directors in making this statement, is to provide some insight into how, as a board, we think and as a company we seek to interact with our stakeholders.
Our philosophy is to provide value in the services we deliver to our clients, which in turn creates client loyalty. If we retain clients by providing relevant and professional services, we will be able to create a positive and rewarding work environment for our employees; and this will in turn benefit companies who support us in delivering our services and ultimately, over the long term, will contribute value to those shareholders who have had the trust, confidence and belief to invest in what we do.
The directors consider the following to be incremental in promoting the long-term success of the company:
Employees: The most important asset of the company is its people. We are committed to recruiting and retaining a diverse team of the highest quality. Our people must be intelligent, creative, knowledgeable, and experienced. We strive to build a culture that motivates our people to work, learn and grow.
Competitive advantage: One of the most significant competitive advantages of the company is its willingness and ability to nimbly shift exposures to different strategies, or within strategies, through active re-allocation of capital.
Engagement with employees
Recruitment and retention of staff is a critical business activity. We help to engage with team members by offering competitive remuneration packages, and rewarding performance with bonuses at all levels. The company also provides training and career development support for its employees.
 

Page 4

 
Rhodon Investment Management Limited


Strategic report (continued)
For the year ended 31 March 2023

Engagement with suppliers, customers and others
To enable us to deliver services to our clients we are highly reliant on those firms who provide services to us, understanding that without their skills and expertise the proposition we make to our clients would be lessened. We seek to work with all our suppliers as if they are an extension of Rhodon Investment Limited, working in a way that is constructive and collaborative whilst recognising and appreciating the value they bring.
Without clients we would have no employees or shareholders. As a supplier of services, we recognise the services we provide are integral to our relationship with our clients. Should we fail to deliver on the promises and commitments we make to our clients, we will be unlikely to retain them. We therefore seek to establish a close working partnership with our clients, believing this provides the best opportunity to deliver value to all who have an ultimate interest in the outcome of the services provided by us and our clients.


This report was approved by the board on 27 July 2023 and signed on its behalf by:



S M Roth
Director

Page 5

 
 
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Independent auditor's report to the members of Rhodon Investment Management Limited
For the year ended 31 March 2023

Opinion


We have audited the financial statements of Rhodon Investment Management Limited (the 'company') for the year ended 31 March 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 March 2023 and of its profit 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 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 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 6

 
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Independent auditor's report to the members of Rhodon Investment Management Limited (continued)
For the year ended 31 March 2023

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 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 director's 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, 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 7

 
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Independent auditor's report to the members of Rhodon Investment Management Limited (continued)
For the year ended 31 March 2023

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:

How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
 
the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including knowledge specific to auditing regulated investment management firms;
we made enquiries of management as to where they considered there was susceptibility to fraud, and their knowledge of actual, suspected and alleged fraud;
we identified the laws and regulations that could reasonably be expected to have a material effect on the financial statements of the company through discussions with directors and other management at the planning stage, and from our knowledge and experience of regulated investment management firms;
the audit team held a discussion to identify any particular areas that were considered to be susceptible to misstatement, including with respect to fraud and non-compliance with laws and regulations; and
we focused our planned audit work on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including the Companies Act 2006, The Financial Services and Markets Act 2000, employment legislation, and taxation legislation.

We assessed the extent of compliance with the laws and regulations identified above through:

making enquiries of management;
reviewing legal expenditure throughout the year for any potential litigation or claims; and
considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

determined the susceptibility of the company to management override of controls by checking the implementation of controls and enquiring of individuals involved in the financial reporting process;
reviewed journal entries throughout the year to identify unusual transactions, particularly in relation to expenditure;
performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any large variances from the prior period;
reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias on the part of the company's management; and
carried out substantive testing of expenditure.
Page 8

 
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Independent auditor's report to the members of Rhodon Investment Management Limited (continued)
For the year ended 31 March 2023

Auditor's responsibilities for the audit of the financial statements (continued)
 
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:

agreeing financial statement disclosures to underlying supporting documentation; and
enquiring of management as to actual and potential litigation and claims.
 
There are inherent limitations in our audit procedures described above. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error as they may involve deliberate concealment or collusion. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
 
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.


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 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.





Katherine White (Senior statutory auditor)
for and on behalf of
Buzzacott LLP
Statutory Auditor
130 Wood Street
London
EC2V 6DL

27 July 2023
Page 9

 
Rhodon Investment Management Limited


Statement of comprehensive income
For the year ended 31 March 2023

2023
2022
Note
£
£

  

Revenue
 4 
1,866,736
2,231,132

Gross profit
  
1,866,736
2,231,132

Administrative expenses
  
(1,044,353)
(860,060)

Other operating income
 5 
72,860
52,914

Fair value movements
  
(147,375)
293,312

Operating profit
 6 
747,868
1,717,298

Interest receivable and similar income
 10 
583
24

Profit before tax
  
748,451
1,717,322

Tax on profit
 11 
(170,119)
(270,548)

Profit for the financial year
  
578,332
1,446,774

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 or 2022.

The notes on pages 14 to 25 form part of these financial statements.

Page 10

 
Rhodon Investment Management Limited - Registered number: 11274910

Statement of financial position
As at 31 March 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
983
531

Investments
 13 
653,709
3,892,712

  
654,692
3,893,243

Current assets
  

Debtors: amounts falling due after more than one year
 14 
-
14,280

Debtors: amounts falling due within one year
 14 
212,984
98,518

Cash at bank and in hand
 15 
3,395,068
2,968,556

  
3,608,052
3,081,354

Creditors: amounts falling due within one year
 16 
(227,153)
(296,366)

Net current assets
  
 
 
3,380,899
 
 
2,784,988

Total assets less current liabilities
  
4,035,591
6,678,231

  

Net assets
  
4,035,591
6,678,231


Capital and reserves
  

Called up share capital 
 18 
1,301,000
4,521,972

Profit and loss account
 19 
2,734,591
2,156,259

  
4,035,591
6,678,231


The financial statements were approved and authorised for issue by the board on 27 July 2023. and were signed on its behalf by:




S M Roth
Director

The notes on pages 14 to 25 form part of these financial statements.

Page 11

 
Rhodon Investment Management Limited


Statement of changes in equity
For the year ended 31 March 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
4,521,972
709,485
5,231,457


Comprehensive income for the year

Profit for the year
-
1,446,774
1,446,774



At 1 April 2022
4,521,972
2,156,259
6,678,231


Comprehensive income for the year

Profit for the year
-
578,332
578,332
Total comprehensive income for the year
-
578,332
578,332

Reduction of B class shares
(3,220,972)
-
(3,220,972)


At 31 March 2023
1,301,000
2,734,591
4,035,591


The notes on pages 14 to 25 form part of these financial statements.

Page 12

 
Rhodon Investment Management Limited


Statement of cash flows
For the year ended 31 March 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
578,332
1,446,774

Adjustments for:

Depreciation of tangible assets
1,022
1,118

Interest received
(583)
(24)

Taxation charge
170,119
270,548

(Increase) in debtors
(100,186)
(6,090)

Increase/(decrease) in creditors
31,413
(13,183)

Fair value movements
523,533
(373,102)

Corporation tax (paid)
(270,745)
(250,168)

Net cash generated from operating activities

932,905
1,075,873


Cash flows from investing activities

Purchase of tangible fixed assets
(1,475)
-

Sale of unlisted and other investments
2,964,019
-

Interest received
583
24

Net cash used in investing activities

2,963,127
24

Cash flows from financing activities

Reduction of B class shares
(3,469,520)
-

Net cash from financing activities
(3,469,520)
-

Net increase in cash and cash equivalents
426,512
1,075,897

Cash and cash equivalents at beginning of year
2,968,556
1,892,659

Cash and cash equivalents at the end of year
3,395,068
2,968,556


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,395,068
2,968,556

3,395,068
2,968,556


The notes on pages 14 to 25 form part of these financial statements.

Page 13

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023

1.


General information

Rhodon Investment Management Limited is a private company limited by shares and incorporated in England & Wales. The registered office of the company is c/o Buzzacott LLP, 130 Wood Street, London, EC2V 6DL and its principal place of business is 16 Berkeley Square, Suite 3.10, London W1J 8DZ. The registration number of the company is 11274910.

2.Significant 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 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

After reviewing the forecasts and projections the directors have reasonable expectations that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 
2.3

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.
 

  
2.4

Other operating income

All other operating income relates to fund reimbursements.

  
2.5

Administrative expenses

Administrative expenses are accounted for on an accruals basis. 

Page 14

 
Rhodon Investment Management Limited

Notes to the financial statements
For the year ended 31 March 2023

2.Significant accounting policies (continued)

 
2.6

Interest income

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

  
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the 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 Statement of financial position 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.
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
-
33%
per annum

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.

Page 15

 
Rhodon Investment Management Limited

Notes to the financial statements
For the year ended 31 March 2023

2.Significant accounting policies (continued)

 
2.9

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.

 
2.10

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash and cash equivalents comprise of cash at bank and in hand, demand deposits with financial institutions  repayable without penalty on notice and other short term highly liquid investments with original maturity of 3 months or less and bank overdrafts.

 
2.12

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 16

 
Rhodon Investment Management Limited

Notes to the financial statements
For the year ended 31 March 2023

2.Significant accounting policies (continued)

 
2.13

Foreign currency translation

Functional and presentation currency
The company's functional and presentational currency is GBP.
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 profit or loss within 'other operating income'.

 
2.14

Operating leases

Rentals income from operating leases is credited to profit or loss  on a straight line basis over the term of the relevant lease.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.15

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.

 
2.16

Valuation of investments

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the profit and loss.Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Page 17

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires directors 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 these estimates.
The directors believe that there are no areas involving significant estimation uncertainty or the application of significant judgement.


4.


Revenue

The whole of the revenue is attributable to the company's principal activity.
All revenue arose from activities performed within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
72,860
52,914

72,860
52,914



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(12,978)
(118,425)

Other operating lease rentals
73,780
68,480

Depreciation
1,023
1,117

Page 18

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023

7.


Auditor's remuneration

2023
2022
£
£



Fees payable to the company's auditor and its associates for the auditing of the company's annual financial statements
7,800
6,500


Fees payable to the company's auditor and its associates in respect of:


Audit-related assurance services
2,500
2,000

Taxation compliance services
2,400
2,400

All other services
15,702
18,169

20,602
22,569


8.


Employees

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


2023
2022
£
£

Wages and salaries
435,179
548,512

Social security costs
55,172
69,755

Cost of defined contribution scheme
1,321
1,320

491,672
619,587


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


        2023
        2022
            No.
            No.







Employees
2
2

Page 19

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
218,512
308,512

218,512
308,512


The highest paid director received remuneration of £218,512 (2022: £308,512).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022: £NIL).

The total accrued pension provision of the highest paid director at 31 March 2023 amounted to £NIL (2022: £NIL).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
583
24

583
24


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
170,119
270,548


170,119
270,548


Total current tax
170,119
270,548

Deferred tax

Total deferred tax
-
-


Taxation on profit on ordinary activities
170,119
270,548
Page 20

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2023
2022
£
£


Profit on ordinary activities before tax
748,451
1,717,322


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
142,206
326,291

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
54,433
-

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
(26,520)
(55,743)

Total tax charge for the year
170,119
270,548


Factors that may affect future tax charges

With effect from 1 April 2023 the rate of corporation tax increased, tapering from 19% for businesses with profits of less than £50,000 to 25% for businesses with profits over £250,000.

Page 21

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023

12.


Tangible fixed assets





Computer equipment

£



Cost or valuation


At 1 April 2022
9,265


Additions
1,475



At 31 March 2023

10,740



Depreciation


At 1 April 2022
8,734


Charge for the year
1,023



At 31 March 2023

9,757



Net book value



At 31 March 2023
983



At 31 March 2022
531


13.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 1 April 2022
3,892,712


Disposals
(2,997,380)


Revaluations
(241,623)



At 31 March 2023
653,709




Page 22

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023

14.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
-
14,280

-
14,280


2023
2022
£
£

Due within one year

Other debtors
40,387
17,144

Prepayments and accrued income
172,597
81,374

212,984
98,518



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
3,395,068
2,968,556

3,395,068
2,968,556



16.


Creditors: amounts falling due within one year

2023
2022
£
£

Trade creditors
28,762
190

Corporation tax
170,187
270,744

Other taxation and social security
8,368
8,173

Other creditors
257
326

Accruals and deferred income
19,579
16,933

227,153
296,366



17.


Analysis of net debt

An analysis of changes in net debt has not been presented as all of the company's cash flows relate to movements
in cash, and the company has no items to include in such an analysis.

Page 23

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023

18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,301,000 (2021 - 1,301,000) Ordinary shares of £1.00 each
1,301,000
1,301,000
4,200,000 (2021 - 4,200,000) Ordinary B shares of $1.00 each
-
3,220,972

1,301,000

4,521,972

During the year, the company issued nil (2022: nil) Ordinary A shares at par and disposed of 4,200,000 (2022: nil) Ordinary B shares at $1 USD per share.
The Ordinary shares and Ordinary B shares rank pari passu in all respects except that the Ordinary shares hold all
rights with respect to voting.



19.


Reserves

Profit and loss account
The profit and loss account includes all current and prior year retained profits and losses.


20.


Contingent liabilities

The company had no contingent liabilities as at 31 March 2023 or 31 March 2022.


21.


Capital commitments


The company had no capital commitments as at 31 March 2023 or 31 March 2022.



22.


Pension commitments

The company operates a defined contributions 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 £1,321 (2022 - £1,320). Contributions totaling £257 were payable to the fund at the reporting date (2022 - £257).

Page 24

 
Rhodon Investment Management Limited

 
Notes to the financial statements
For the year ended 31 March 2023

23.


Commitments under operating leases

At 31 March 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
71,400
59,500

71,400
59,500


24.


Related party transactions

During the year there were no related party transactions. At 31 March 2023, no amounts (2022 - £nil) were owed from or to a director of the company.
          
Key management personnel
Certain persons who have authority and responsibility for planning directly and controlling the activities of the company are considered to be key management personnel. There are no key management personnel except the directors.


25.


Controlling party

The ultimate controlling party of the company is Steven Roth.

Page 25