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Company Information
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Contents
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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
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.
The directors who served during the year were:
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.
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Directors' report (continued)
For the year ended 31 March 2023
This report was approved by the board on
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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.
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.
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.
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.
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Strategic report (continued)
For the year ended 31 March 2023
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.
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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:
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Independent auditor's report to the members of Rhodon Investment Management Limited
For the year ended 31 March 2023
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 policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
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.
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Independent auditor's report to the members of Rhodon Investment Management Limited (continued)
For the year ended 31 March 2023
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.
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.
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.
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Independent auditor's report to the members of Rhodon Investment Management Limited (continued)
For the year ended 31 March 2023
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.
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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.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to 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.
for and on behalf of
Statutory Auditor
130 Wood Street
EC2V 6DL
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Statement of comprehensive income
For the year ended 31 March 2023
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Statement of financial position
As at
The financial statements were approved and authorised for issue by the board on
The notes on pages 14 to 25 form part of these financial statements.
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Statement of changes in equity
For the year ended 31 March 2023
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Statement of cash flows
For the year ended 31 March 2023
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Notes to the financial statements
For the year ended 31 March 2023
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
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:
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.
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:
All other operating income relates to fund reimbursements.
Administrative expenses are accounted for on an accruals basis.
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Notes to the financial statements
For the year ended 31 March 2023
2.Significant accounting policies (continued)
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.
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:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Notes to the financial statements
For the year ended 31 March 2023
2.Significant accounting policies (continued)
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Notes to the financial statements
For the year ended 31 March 2023
2.Significant accounting policies (continued)
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'. 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.
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.
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Notes to the financial statements
For the year ended 31 March 2023
The directors believe that there are no areas involving significant estimation uncertainty or the application of significant judgement.
The whole of the revenue is attributable to the company's principal activity.
All revenue arose from activities performed within the United Kingdom.
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Notes to the financial statements
For the year ended 31 March 2023
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Notes to the financial statements
For the year ended 31 March 2023
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Notes to the financial statements
For the year ended 31 March 2023
11.Taxation (continued)
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.
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Notes to the financial statements
For the year ended 31 March 2023
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Notes to the financial statements
For the year ended 31 March 2023
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.
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Notes to the financial statements
For the year ended 31 March 2023
Profit and loss account
The profit and loss account includes all current and prior year retained profits and losses.
The company had no contingent liabilities as at 31 March 2023 or 31 March 2022.
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 £
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Notes to the financial statements
For the year ended 31 March 2023
The ultimate controlling party of the company is
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