Registered number: 06310081
AUDITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021 |
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The Company acts as a holding company for four wholly owned subsidiaries, as follows:
Subsidiary Principal Activity Laidlaw & Company (UK) Limited Auxiliary financial intermediary Laidlaw & Company International Limited Auxiliary financial intermediary Laidlaw Wealth Management LLC Financial planning & portfolio management Laidlaw Private Equity LLC Auxiliary financial intermediary
As a holding company, the Company’s business involves the business of its subsidiaries. As such, extracts from the Strategic Report of Laidlaw & Company (UK) Limited, the primary active subsidiary as well as comments on its other active subsidiary, Laidlaw Wealth Management, LLC, the Company’s Registered Investment Advisor (RIA), are incorporated herein with minor modification:
Overseas Branches
During the year, the Group provided its services as a securities broker dealer through its primary operating subsidiary in six locations outside of London: New York City, New York Melville, New York Boston, Massachusetts San Francisco, California Stamford, Connecticut Boca Raton, Florida
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
For all of its active subsidiaries, the Directors consider that achieving stability and, if possible, above inflation growth in aggregate revenue volume where applicable while continuing to increase recurring fee revenue, particularly at the RIA, will help to generate a sufficient gross profit margin that will sustain the businesses throughout market cycles. Therefore, the Directors consider the percentage growth of overall revenues including commissions and fees and the gross profit margin to be the key performance indicators of the broker dealer subsidiary. In parallel, the Directors believe that growth in advisory fee revenue from the various departments, affiliates and subsidiaries, concomitant with the growth in overall assets under management (AUM) and stakeholdings from its subsidiary investment initiatives, will prove to be another key performance indicator. The Directors also acknowledge that such metrics can experience declines and liquidity delays in less optimal market cycles.
The Directors note that the Group reported operating income in 2021 primarily related to the received distribution from Laidlaw Private Equity LLC. LPE is a passive Member of various external management companies owned by the investors involved in managing a family of special purpose funds focused on long-term private investments in venture-backed private companies. Periodically, the management companies are eligible for a Carried Interest Allocation based on the performance of the funds. As a matter of practice, the Carried Interest Allocation is paid in kind in the form of shares held by the respective funds that are liquid and eligible for distribution. LPE is eligible for percentage of such share distributions which it, in turn, allocates to the Trusts that own the parent company pursuant to the Articles of Association and any amendment thereto, and, at the discretion of management, to key employees and other members of the Laidlaw family of companies. The distributions received by LPE are not under the control of LPE and are viewed as non-recurring profit-sharing and, as such, are not treated as turnover in the traditional sense. Although the operating income was largely driven by the distributions from LPE the directors are in any event satisfied with the performance of the Company’s subsidiaries and new initiatives, particularly in the venture capital and merchant banking efforts. As these new initiatives were implemented during 2022, the year was very difficult from a general market perspective. However the company has seen positive impacts of these initiatives and an well as improved market conditions and remain cautiously optimistic about 2023. As in the past, it expects to improve its own offerings by utilizing the service platforms and products available to it through its fully disclosed clearing firm, StoneX (NASDAQ Global Select Market Symbol – SNEX) as well as platforms and services available to it through its affiliated firms in wealth management, private equity and venture capital. StoneX Group Inc. is a global financial services network that connects companies, organizations, traders, and investors to the global market ecosystem through digital platforms. Its segments include Commercial, which offers commercial clients a range of products and services, including risk management and hedging services, execution and clearing of exchange-traded and over-the-counter (OTC) products, voice brokerage, market intelligence and physical trading; Institutional, which provides institutional clients with a complete suite of equity trading services to help them find liquidity with execution, liquidity across a range of fixed income products, as well as prime brokerage in equities and foreign currency pairs and swap transactions; Retail, which includes spot foreign exchange (forex), both financial trading and physical investment in precious metals, and Global Payments provides foreign exchange and treasury services to banks and commercial businesses, as well as charities. Management believes that the challenges posed by global trends and events require scope, diversity, resilience and flexibility. By working with its affiliates and service providers, it hopes to expand its presence in all of its markets and business segments in a prudent and managed fashion to better serve its global clientele.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The responsibility for processing customer activity rests with the Group's clearing firm, StoneX. The broker dealer's clearing and execution agreement provides that StoneX credit losses relating to unsecured margin accounts receivable for the Group's customers are charged back to the Group.
StoneX records customer activity on a settlement date basis, which is generally three business days after the trade date. There is therefore a risk of loss on these transactions in the event of the customer's inability to meet the terms of its contracts, in which case StoneX may have to purchase or sell the underlying financial instruments at the prevailing market prices in order to satisfy its customer related obligations. Any loss incurred by StoneX is charged back to the Group. The broker dealer, in conjunction with StoneX, controls off balance sheet risk by monitoring the market value and marking securities to market on a daily basis and by requiring adjustments of collateral levels. StoneX establishes margin requirements and overall credit limits for such activities and monitors compliance with the applicable limits and industry regulations on a daily basis. The RIA utilises multiple levels of risk management to safeguard customer assets, in particular through its business partnerships with global custodial and execution providers such as Charles Schwab and StoneX. As an RIA, it adheres to a regulatory record keeping and reporting regime under the Securities & Exchange Commission (SEC), state and local regulatory bodies and FINRA, where applicable, to protect customer assets and ensure day to day business continuity and stability. The Group’s broker dealer and RIA subsidiaries maintain policies relating to their own technology and surveillance capabilities, including written supervisory policies and anti-money laundering procedures. In addition, the Group and its financial partners maintain multiple insurance policies covering fraud, theft, loss and other potential liabilities. The Group also relies on other third party providers for additional financial, compliance and regulatory oversight. The Group manages its exposure to liquidity risk by using finance leases where appropriate. In addition, the Group took out a COVID-19 Small Business Administration (SBA) support loan of $2,000,000 to help support operational costs during the height of the pandemic. In 2021 $1,677,945 of the loan was forgiven by the bank after the Company met the requirements for the loan to be forgiven. The Group has minimised use of formal bank loans where possible by seeking funding from the Directors of Laidlaw & Company (UK) Ltd and by utilising a bank overdraft facility to provide both flexibility and continuity of funding as and when required. The Group has minimal exposure to interest rate risk because the COVID-19 loan has a fixed rate of interest of 1%. Trade debtors primarily represent commission receivable from StoneX. The risks associated with this have been discussed above. Other trade debtors result from the outsourcing of services. These are managed in respect of credit risk and cash flow by strict Group policies concerning the credit offered to customers and the regular monitoring of amounts outstanding. Lliquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The Company is a holding company relying on the activities of its subsidiaries, each of which may be subject to distinct metrics, unique personnel requirements, a certain cyclicality and general market conditions.
An analysis of these key performance indicators in 2021 shows that gross turnover increased by 15.4% principally driven by a 73.2% increase in Corporate Finance Fee, a 228.2% increase in Wealth Management fees related to the expansion of the Wealth Management division. The increase in Gross Revenues was partially offset by a decrease of 39% in Sales Commission & Credits. The gross profit margin as a percentage of sales of 25.7% decreased from the prior years' gross profit margin of 31.2% primarily related to the revenue mix and the associated commission payouts. The Directors note that the Group reported operating income in 2021 primarily related to the received distribution from Laidlaw Private Equity, because the operating income was largely driven by the distribution from LPE the Directors are satisfied with the performance of the Company’s subsidiaries and new initiatives, particularly in the venture capital and merchant banking efforts, during the year.
There are no other key performance indicators.
The Directors of the Group have acted in accordance with their duties and obligations set out in statute.
The Board makes decisions in good faith for the long-term benefit of its’ stakeholders which include members, employees, business partners, and the community as a whole.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The Directors present their report and the financial statements for the year ended 31 December 2021.
The Directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the Directors are required to:
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 the Group and to 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.
The profit for the year, after taxation, amounted to $5,297,876 (2020 - loss $3,016,154).
The Directors have recommended that no dividends be paid this year (2020 - $Nil).
The Directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Going forward, Management will continue to focus on growing the business of the broker-dealer subsidiary and expanding the scope of the wealth management practice both organically and through strategic initiatives. Its private equity subsidiary will continue to be involved in externally managed, special purpose funds devoted to long-term private investments in venture-backed companies while mainlining its current economic interest in the existing family of active funds. Certain opportunities are also being considered between and among its venture capital activities and its fund management initiatives to sponsor focused special purpose vehicles more directly related to its core health care expertise.
Operationally, it aims to improve efficiencies through prudent expense management, active departmental cooperation and strategic recruitment and team building in a context of planning and corporate diversification. In so doing, the business should benefit from economies of scale and vertical integration of its areas of practice.
The principal risks and uncertainties are not shown in the Directors report as they are shown in the strategic report in accordance with S414C (11) of the Companies Act 2006.
Due to identifying certain non compliant events occurring, FINRA imposed a fine of $400,000 in March 2023. The subsidiary has taken steps to correct their systems to ensure future compliance
Under section 487(2) of the Companies Act 2006, Wellden Turnbull Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAIDLAW HOLDINGS LIMITED
We have audited the financial statements of Laidlaw Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company 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).
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 or 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAIDLAW HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 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 Directors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAIDLAW HOLDINGS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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. We have identified the greatest risk of a material impact on the financial statements from irregularities, including fraud, to relate to the timing and recognition of revenue and the override of controls by management. We have obtained an understanding of the legal and regulatory frameworks that the Group operates within including both those that directly have an impact on the financial statements and more widely those for which non-compliance could have a significant impact on the Company’s operations and reputation. The Companies Act 2006, employee legislation, health and safety legislation. FCA regulations, FINRA regulations and data protection are those we have identified in this regard. Auditing standards limit the required procedures as to non-compliance with laws and regulations to enquiries of those charged with governance and review of any applicable correspondence.
The extent to which our procedures are capable of detecting irregularities, including fraud are detailed below:
∙Enquiry of management and those charged with governance as to actual and potential litigation and claims;
∙Enquiry of staff in compliance functions to identify any instances of non-compliance with laws and regulations;
∙Agreeing revenue recognised in the period to supporting audit evidence and assessing the accuracy of revenue recognised based on revenue recognition criteria;
∙Reviewing financial statement disclosures and verification to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAIDLAW HOLDINGS LIMITED (CONTINUED)
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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Albany House
Claremont Lane
Surrey
KT10 9FQ
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
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CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 43 form part of these financial statements.
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CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2021
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COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 43 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Laidlaw Holdings Limited is a private company, limited by shares, incorporated in England and Wales,
registered number The principal place of business is 521 5th Avenue, 12th floor, New York, NY 10175.
2.Accounting policies
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
and underwriting net of syndicate expenses arising from security offerings in which the Group acts as an underwriter or agent. occur. recognised when corporate deal complete.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
Other intangible assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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.
The estimated useful lives range as follows:
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 DECEMBER 2021
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
Provisions are charged as an expense to the consolidated statement of comprehensive income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are: Legal fee provisions At the year end where there are legal cases ongoing, the Group takes specialist advice to assess the expected outcome and settlement. Based upon the information the Group complies with the regulations on contingent assets and liabilities. Tangible fixed assets Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Intangible assets Intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated by applying the straight-line method to its estimated useful life, which in the case of the other intangibles is 5 years. Estimates of the useful economic life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the other intangibles is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. The Company's loans were reviewed by the Directors as at year end and a bad debt provision was made based upon the directors assessment of recoverability.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
13.Taxation (continued)
In March 2021, the Chancellor announced an increase in the corporation tax rate from 19% to 25% with effect from 1 April 2023.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
16.Tangible fixed assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The $2,557,500 is secured against the public securities held by the Company.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
25.Deferred taxation (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Share premium account
Capital redemption reserve
Foreign exchange reserve
Profit and loss account
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
28.Analysis of net debt (continued)
The Group has been named as a defendant in a number of actions relating to its activities as a broker-dealer including civil actions and arbitration. From time to time, the Group is also involved in proceedings and investigations by self-regulatory organisations. Although the ultimate outcome of these matters involving the Group cannot be predicted with certainty, in the opinion of the Directors, the Group has meritorious defences to all such actions and intends to defend each of these actions vigorously. It is therefore the opinion of the Directors that the ultimate resolution of such actions will have no material adverse effect on the Group's financial condition.
At the year end a director of the Company had loaned the Company $1,500,000 (2020 - $Nil). The loan is interest free and repayable on demand.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
There is no ultimate controlling party.
The consolidated financial statements are available from Companies House at Crown Way, Cardiff, CF14 3UZ.
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