REGISTERED NUMBER: 10948217 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
for |
Fortem Capital Holdings Limited |
REGISTERED NUMBER: 10948217 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
for |
Fortem Capital Holdings Limited |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Profit and loss account | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
Fortem Capital Holdings Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Registered Auditor |
28 Church Road |
Stanmore |
Middlesex |
HA7 4XR |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
The directors present the strategic report for the year ended 31 March 2023. |
Fair review of the business: |
The Directors present the company's seventh financial statement for the period ending 31 March 2023. The principal activity of the company is that of asset management, advising on and arranging bespoke investments and the provision of trade execution and financial data services. The company's clients are predominantly Professional and Institutional investors across the UK, Europe and Middle East. |
The company is regulated by the Financial Conduct Authority (FCA). |
Principal risks and uncertainties: |
The board of Directors of Fortem Capital Holdings are ultimately responsible for the risk management of the company. The board applies a 3 lines of defence approach to help mitigate risks. |
The board has assessed its risk, and these are categorised as follows: |
Credit risk: |
The main credit risk of the firm is a defaulting debtor, although the firm does not extend credit to its clients. The key credit exposures that the firm has are cash balances maintained with its UK clearer, management fees receivable from the funds it manages, and fees owed from partner banks. Cash balances are held in overnight deposit accounts and are readily available. Arrangement and Management fees are payable within 30 days of their calculation. |
Liquidity risk: |
The liquidity risk that the firm faces is the inability to settle its liabilities as they fall due. The risk management process includes frequent monitoring of the liquidity position of the firm. Bank reconciliations and cash flows are prepared on a regular basis to ensure that all liabilities are identified promptly and can be settled as they fall due. |
Cash resources of the firm are maintained in bank accounts with instant access. |
Operational risk: |
The firm is aware of the reputational damage that could result from a failure in operating procedures. The firm's key policies and procedures are documented in the compliance manual and their effectiveness kept under review via the compliance monitoring programme. |
Changes to procedures are communicated to Directors and staff as they occur, and personnel provide a written confirmation of their understanding and acknowledgement of any significant changes. |
Directors and staff remain aware of the policies and procedures and periodically confirm their compliance via a bi-annual compliance declaration. |
Market risk: |
The firm has negligible exposure to foreign currency or to other financial markets and therefore is not subject to material market risk. |
Interest rate risk: |
The firm is not exposed to interest rate risk as it does not rely on borrowings to meet operating expenditure and does not make loans to clients. |
Loss of key staff: |
Given the size of the company loss of key staff is a material risk to Fortem Capital Limited. This is mitigated by ensuring staff are well incentivised and the working environment at Fortem Capital Limited reinforces this. |
Development and performance of the company's business: |
Moving into its seventh year of trading, the company has seen continued growth following a renewed focus on developing the multiple business lines. The advisory side of the business exhibited its usual robust activity over the year, with the business also benefitting from a growth in the company's assets under management through strategic guidance and management. Furthermore, the analytics and technology business line has seen new partnerships evolve, assisting in its growth for the year. |
Income generated was £4,379,274 and profit before tax was £1,887,684. The income mirrored the previous year and was again relatively evenly split between advisory and asset management. |
ON BEHALF OF THE BOARD: |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Report of the Directors |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
During the year the company made charitable donations of £12,468 (2022: £15,000). |
GOING CONCERN |
Having reviewed the company's financial forecasts and expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have also considered the effects of Covid-19 on the financial position of the company and have no reason to believe there to be a significant impact which would cast doubt on the company to continue as a going concern. Thus the going concern basis has been adopted in preparing the financial statements for the year ended 31 March 2023. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Fortem Capital Holdings Limited |
Opinion |
We have audited the financial statements of Fortem Capital Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Profit and loss account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 group's and the parent 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Fortem Capital Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Fortem Capital Holdings Limited |
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 a Report of the Auditors 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: |
- identification of laws and regulations applicable to the company which may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health & safety legislation; |
- assessing the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal and other relevant correspondence; |
- discussions with the management on consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
- evaluation of internal controls designed to prevent and detect irregularities; |
- performing analytical procedures to identify any unusual or unexpected relationships; |
- testing journal entries to identify unusual transactions; |
- assessing whether there was evidence of bias by the management in relation to accounting estimates; |
- investigating the rationale behind significant or unusual transactions; |
- 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 the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 |
Chartered Accountants |
Registered Auditor |
28 Church Road |
Stanmore |
Middlesex |
HA7 4XR |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Consolidated Profit and loss account |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 4,379,274 | 3,979,438 |
Cost of sales | (984,094 | ) | (1,017,056 | ) |
GROSS PROFIT | 3,395,180 | 2,962,382 |
Administrative expenses | (1,511,072 | ) | (1,011,550 | ) |
1,884,108 | 1,950,832 |
Other operating income | - | 7,921 |
OPERATING PROFIT | 5 | 1,884,108 | 1,958,753 |
Income from shares in group undertakings | - | 3,500 |
Interest receivable and similar income | 10,687 | 8,806 |
1,894,795 | 1,971,059 |
Interest payable and similar expenses | 6 | (7,111 | ) | 22 |
PROFIT BEFORE TAXATION | 1,887,684 | 1,971,081 |
Tax on profit | 7 | (361,033 | ) | (336,190 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,528,464 | 1,635,872 |
Non-controlling interests | (1,813 | ) | (981 | ) |
1,526,651 | 1,634,891 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,526,651 | 1,634,891 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,526,651 |
1,634,891 |
Total comprehensive income attributable to: |
Owners of the parent | 1,528,464 | 1,635,872 |
Non-controlling interests | (1,813 | ) | (981 | ) |
1,526,651 | 1,634,891 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Consolidated Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 69,869 | 50,196 |
Investments | 11 | 29,576 | 29,576 |
99,445 | 79,772 |
CURRENT ASSETS |
Debtors | 12 | 589,864 | 535,322 |
Cash at bank and in hand | 641,624 | 937,338 |
1,231,488 | 1,472,660 |
CREDITORS |
Amounts falling due within one year | 13 | (756,529 | ) | (857,097 | ) |
NET CURRENT ASSETS | 474,959 | 615,563 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
574,404 |
695,335 |
CREDITORS |
Amounts falling due after more than one year |
14 |
- |
(208,333 |
) |
NET ASSETS | 574,404 | 487,002 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 55,640 | 55,640 |
Capital redemption reserve | 18 | 10 | 10 |
Retained earnings | 18 | 563,607 | 474,392 |
SHAREHOLDERS' FUNDS | 619,257 | 530,042 |
NON-CONTROLLING INTERESTS | 19 | (44,853 | ) | (43,040 | ) |
TOTAL EQUITY | 574,404 | 487,002 |
The financial statements were approved by the Board of Directors and authorised for issue on 2 November 2023 and were signed on its behalf by: |
E R J Senior - Director |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Company Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,469,249 | 1,532,686 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 April 2021 | 55,640 | 374,936 | 10 |
Changes in equity |
Dividends | - | (1,536,416 | ) | - |
Total comprehensive income | - | 1,635,872 | - |
Balance at 31 March 2022 | 55,640 | 474,392 | 10 |
Changes in equity |
Dividends | - | (1,439,249 | ) | - |
Total comprehensive income | - | 1,528,464 | - |
Balance at 31 March 2023 | 55,640 | 563,607 | 10 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 April 2021 | 430,586 | (42,059 | ) | 388,527 |
Changes in equity |
Dividends | (1,536,416 | ) | - | (1,536,416 | ) |
Total comprehensive income | 1,635,872 | (981 | ) | 1,634,891 |
Balance at 31 March 2022 | 530,042 | (43,040 | ) | 487,002 |
Changes in equity |
Dividends | (1,439,249 | ) | - | (1,439,249 | ) |
Total comprehensive income | 1,528,464 | (1,813 | ) | 1,526,651 |
Balance at 31 March 2023 | 619,257 | (44,853 | ) | 574,404 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,987,443 | 1,984,296 |
Interest paid | (7,111 | ) | 22 |
Tax paid | (569,794 | ) | (77,910 | ) |
Net cash from operating activities | 1,410,538 | 1,906,408 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (75,490 | ) | (4,651 | ) |
Sale of tangible fixed assets | 47,800 | - |
Interest received | 10,687 | 8,806 |
Dividends received | - | 3,500 |
Net cash from investing activities | (17,003 | ) | 7,655 |
Cash flows from financing activities |
New loans in year | - | 250,000 |
Loan repayments in year | (250,000 | ) | - |
Equity dividends paid | (1,439,249 | ) | (1,536,416 | ) |
Net cash from financing activities | (1,689,249 | ) | (1,286,416 | ) |
(Decrease)/increase in cash and cash equivalents | (295,714 | ) | 627,647 |
Cash and cash equivalents at beginning of year |
2 |
937,338 |
309,691 |
Cash and cash equivalents at end of year | 2 | 641,624 | 937,338 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,887,684 | 1,971,081 |
Depreciation charges | 27,135 | 22,930 |
Profit on disposal of fixed assets | (19,118 | ) | - |
Gain on revaluation of fixed assets | - | (7,921 | ) |
Finance costs | 7,111 | (22 | ) |
Finance income | (10,687 | ) | (12,306 | ) |
1,892,125 | 1,973,762 |
Increase in trade and other debtors | (54,997 | ) | (107,831 | ) |
Increase in trade and other creditors | 150,315 | 118,365 |
Cash generated from operations | 1,987,443 | 1,984,296 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 641,624 | 937,338 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 937,338 | 309,691 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 937,338 | (295,714 | ) | 641,624 |
937,338 | (295,714 | ) | 641,624 |
Debt |
Debts falling due within 1 year | (41,667 | ) | 41,667 | - |
Debts falling due after 1 year | (208,333 | ) | 208,333 | - |
(250,000 | ) | 250,000 | - |
Total | 687,338 | (45,714 | ) | 641,624 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Fortem Capital Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of Fortem Capital Holdings Limited and all its subsidiaries; the accounts of all group companies are made up to 31 March annually. The results of subsidiaries acquired or disposed of during the year are included in the consolidated accounts from the date of their acquisition or up to the date of their disposal. Intra-group transactions are eliminated fully on consolidation. |
In accordance with the provisions of section 408 Companies Act 2006 a separate profit and loss account dealing with the results of the company only has not been prepared. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company’s accounting policies, the directors are required to make judgements, |
estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting |
estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Turnover |
Turnover is recognised in accordance with pre-agreed fees per transaction paid by the customers to the company. Daily reports of transactions are used to recognise income and invoices are issued on an accrual basis. |
Turnover from management fees are recognised net of deductions. |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
All of the United Kingdom pension costs relate to individual pension plans or stakeholder pension contributions, and are charged to the profit and loss account as they arise. Pension costs relating to overseas schemes have been determined in accordance with local practice. |
Foreign exchange |
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Going concern |
The directors have considered the impact of Covid-19 on the ability of the company to continue as a going concern. The company on its own has a strong balance sheet, positive cash flow and has budgeted its operations for the next 12 months. Although the full economic impact of the pandemic will not be known for some time, the directors continue to monitor the situation closely and will take appropriate measurements as and when required to ensure the continuity of the business. Accordingly, the directors consider it appropriate to prepare the financial statements on a going concern basis. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Trade fees | 2,493,623 | 2,266,913 |
Management fees | 1,885,651 | 1,712,525 |
4,379,274 | 3,979,438 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 668,850 | 406,949 |
Social security costs | 81,933 | 45,308 |
Other pension costs | 10,941 | 9,741 |
761,724 | 461,998 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 3 | 3 |
Others | 8 | 5 |
The average number of employees by undertakings that were proportionately consolidated during the year was 11 (2022 - 8 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | - | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 97,721 | 71,993 |
Depreciation - owned assets | 27,135 | 22,929 |
Profit on disposal of fixed assets | (19,118 | ) | - |
Auditors' remuneration | 12,000 | 12,000 |
Foreign exchange differences | 7,219 | 1,402 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 6,908 | - |
Interest on overdue taxation | 203 | (22 | ) |
7,111 | (22 | ) |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 361,033 | 386,153 |
Adjustments in respect of |
prior periods | - | (49,963 | ) |
Tax on profit | 361,033 | 336,190 |
UK corporation tax has been charged at 19 % (2022 - 19 %). |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,887,684 | 1,971,081 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
358,660 |
374,505 |
Effects of: |
Expenses not deductible for tax purposes | 3,584 | 8,175 |
Capital allowances in excess of depreciation | (1,211 | ) | - |
Depreciation in excess of capital allowances | - | 3,473 |
Adjustments to tax charge in respect of previous periods | - | (49,963 | ) |
Total tax charge | 361,033 | 336,190 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final | 1,439,249 | 1,536,416 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 | 13,927 | 50,990 | 37,035 | 101,952 |
Additions | 960 | 56,090 | 18,440 | 75,490 |
Disposals | - | (50,990 | ) | - | (50,990 | ) |
At 31 March 2023 | 14,887 | 56,090 | 55,475 | 126,452 |
DEPRECIATION |
At 1 April 2022 | 7,605 | 19,121 | 25,030 | 51,756 |
Charge for year | 3,299 | 14,873 | 8,963 | 27,135 |
Eliminated on disposal | - | (22,308 | ) | - | (22,308 | ) |
At 31 March 2023 | 10,904 | 11,686 | 33,993 | 56,583 |
NET BOOK VALUE |
At 31 March 2023 | 3,983 | 44,404 | 21,482 | 69,869 |
At 31 March 2022 | 6,322 | 31,869 | 12,005 | 50,196 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | FIXED ASSET INVESTMENTS |
Group |
Listed |
investments |
£ |
COST OR VALUATION |
At 1 April 2022 |
and 31 March 2023 | 29,576 |
NET BOOK VALUE |
At 31 March 2023 | 29,576 |
At 31 March 2022 | 29,576 |
Cost or valuation at 31 March 2023 is represented by: |
Listed |
investments |
£ |
Valuation in 2022 | 7,921 |
Cost | 21,655 |
29,576 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Fortem Capital Limited |
Registered office: England and Wales |
Nature of business: Asset management and arranging bespoke |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Fortem Capital AGF Limited |
Registered office: England and Wales |
Nature of business: Business support services |
% |
Class of shares: | holding |
Ordinary | 75.00 |
Fortem Capital International Limited |
Registered office: England and Wales |
Nature of business: Business support services |
% |
Class of shares: | holding |
Ordinary | 75.00 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 542,047 | 473,933 |
Amounts owed by group undertakings | - | - |
Other debtors | 15,403 | 30,469 |
Tax | - | 505 |
Prepayments and accrued income | 32,414 | 30,415 |
589,864 | 535,322 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) | - | 41,667 |
Trade creditors | 339 | 15,965 |
Tax | 176,875 | 386,141 |
Social security and other taxes | 23,415 | - |
Pension liability | 4,643 | 3,763 |
VAT | 5,311 | 5,161 |
Directors' current accounts | 171,463 | 185,100 |
Accruals and deferred income | 374,483 | 219,300 |
756,529 | 857,097 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) | - | 208,333 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 41,667 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | - | 50,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 150,000 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 8,333 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 55,490 | 55,490 |
Between one and five years | 9,248 | 9,248 |
64,738 | 64,738 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 55,300 | 55,300 |
Ordinary - B shares | £1 | 340 | 340 |
55,640 | 55,640 |
The Ordinary and Ordinary - B shares have attached to them full voting and capital distribution (including on winding up) rights; they do not confer any rights or redemption. The Ordinary and Ordinary - B shares shall be separate classes of shares for the declaration of dividends which shall be at the discretion of the director. The declaration of a dividend in respect of one class of share shall not compel a dividend at the same rate to be declared in respect of any other class of share. |
Save as the above, the Ordinary and Ordinary - B shares shall rank pari passu in all other respects. |
18. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | 474,392 | 10 | 474,402 |
Profit for the year | 1,528,464 | 1,528,464 |
Dividends | (1,439,249 | ) | (1,439,249 | ) |
At 31 March 2023 | 563,607 | 10 | 563,617 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | 415 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 March 2023 | 45,415 |
Fortem Capital Holdings Limited (Registered number: 10948217) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
19. | NON-CONTROLLING INTERESTS |
The minority interest charge for the year is £1,813 (2022: £981). |
20. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The charge to the profit and loss account in the year in respect of defined contribution schemes was £10,941 (2022: £9,741). |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Included within other creditors at the year end are amounts of £47,600 (2022: £51,431), £86,178 (2022: £93,010) and £37,684 (2022: £40,659) due to the director's E R J Senior, R Rogowski and C A Dagg respectively. Aggregate interest of £9,176 (2022: £8,704) has been charged on the overdrawn balances at the rate of 2% (2022: 2%). |
The following amounts were advanced to the directors during the year and were considered material; |
E R J Senior |
June 2022 | £100,000 |
July 2022 | £31,250 |
September 2022 | £105,000 |
January 2023 | £157,500 |
March 2023 | £105,000 |
R Rogowski |
July 2022 | £132,250 |
September 2022 | £106,000 |
January 2023 | £158,500 |
March 2023 | £105,000 |
C Dagg |
July 2022 | £112,500 |
September 2022 | £90,000 |
January 2023 | £135,000 |
March 2023 | £90,000 |
There have been no other advances which individually were considered material and no other advances exceeding £10,000 to each of the directors. |
22. | RELATED PARTY DISCLOSURES |
The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |