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Registered number: 10506392









LAPWING ADVISERS LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
LAPWING ADVISERS LTD
 
 
COMPANY INFORMATION


Directors
K Ayaguzov 
P D Mayes 




Company secretary
S J Record



Registered number
10506392



Registered office
27 Old Gloucester Street

London

WC1N 3AX




Independent auditors
Adler Shine LLP
Chartered Accountants & Statutory Auditor

Aston House

Cornwall Avenue

London

N3 1LF





 
LAPWING ADVISERS LTD
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Analysis of net debt
 
13
Notes to the financial statements
 
14 - 24


 
LAPWING ADVISERS LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The directors present the strategic report for the year ended 31 December 2022.

Business review
 
2022 was a stable year for the business from an activity perspective. We continued to provide corporate finance services to our key clients throughout they year, although the growth of our customer base was below expectations. Our trading activity was muted for the year but we are confident of a return to growth for this area of the business. The company has various new initiatives in place for 2023 in new lines of business and well as expecting a growth activity from our core existing client base. 

Principal risks and uncertainties
 
Geopolitically we remain very concerned about the state of the world. There are numerous reasons to be nervous about the global economy but we will approach these as a potential to add value where needed and assist as required. 
The lack of any liberalisation of the UK financial infrastructure despite the promises made with Brexit are also a source of concern and we see no desire for this to change – if anything the regulators are looking to make life harder for small businesses like ours. 

Financial key performance indicators
 
During the year sales have decreased to £390,940 from £397,655 in 2021 and the company has made a loss of £52,685 (2021: profit of £63,640). At the year end, cash and cash equivalents was in deficit by £13,016 (2021: surplus £1,524)

Other key performance indicators
 
There are no other key performance indicators.

Directors' statement of compliance with duty to promote the success of the company
 
The directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way they consider would be most likely to promote the success of the company for the benefit of its members as a whole and, in doing so, to have regard to: the likely consequences of its decisions in the long-term; the interests of employees, suppliers, customers and others; the impact of the company’s operations on the community and the environment; and the company's reputation for high standards of business conduct.


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



P D Mayes
Director

Date: 17 November 2023

Page 1

 
LAPWING ADVISERS LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company during the year continued to be that of regulated advisory services and transactional services. The company is authorised and regulated by the Financial Conduct Authority (FCA).

Results and dividends

The loss for the year, after taxation, amounted to £52,685 (2021 - profit £63,640).

No interim dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

K Ayaguzov 
P D Mayes 

Future developments

We see a number of opportunities from an increasingly dislocated market – we intend to use these dislocations to our advantage due to our varied and in-depth market knowledge across sectors. Lapwing plans to launch more new business lines in 2023 as our client base continues to grow.

Page 2

 
LAPWING ADVISERS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

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

Auditors

New auditors are to be appointed following the approval of these financial statements.

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





P D Mayes
Director

Date: 17 November 2023

Page 3

 
LAPWING ADVISERS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAPWING ADVISERS LTD
 

Opinion


We have audited the financial statements of Lapwing Advisers Ltd (the 'company') for the year ended 31 December 2022, which comprise the statement of comprehensive income, the balance sheet, the statement of cash flows, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


Except for the effects of the  matter described in the Basis for Qualified Opinion paragraph, in our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for qualified opinion


During the year ended 31 December 2022, the company recognised revenue of £220,568 related to net cash receipts. The directors of the company have been unable to provide sufficient, appropriate audit evidence to substantiate the recognition of this revenue. Consequently, we were unable to determine whether any adjustment to this revenue was necessary.  


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Page 4

 
LAPWING ADVISERS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAPWING ADVISERS LTD (CONTINUED)


Material uncertainty related to going concern


We draw attention to note 2.3 in the financial statements, which indicates that there is currently a deficiency in the liquid capital resources of the company and a material uncertainty over the availability of future cash resources.  As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


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. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included: 

Reviewing management's assessment of the going concern basis, including their evaluation of future funding requirements and funding availability, while challenging their key assumptions and inputs to ensure reasonableness and appropriateness; 
Assessing the company’s liquidity and the impacts on the reliability of the going concern evaluation; and 
Assessing whether key assumptions and inputs to the model were reasonable, in light of the company’s relevant principal risks and uncertainties, and conducting our independent assessment of those risks.


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 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Page 5

 
LAPWING ADVISERS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAPWING ADVISERS LTD (CONTINUED)


Matters on which we are required to report by exception
 

Except for the matter described in the basis for qualified opinion section of our report, 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.
Arising solely from the limitation on the scope of our work relating to revenue referred to above:
 
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and 
we were unable to determine whether adequate accounting records have been kept.

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:
 
returns adequate for our audit have not been received from branches not visited by us; or  
the financial statements are not in agreement with the accounting records and returns; or 
certain disclosures of directors’ remuneration specified by law are not made;


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
LAPWING ADVISERS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAPWING ADVISERS LTD (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. 
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have:

considered the nature of the industry and sectors, control environment and business performance;
made enquires of management about their own identification and assessment of the risk of irregularities; 
performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias;
reviewed minutes of meetings;
undertaken appropriate sample based testing of bank transactions;
identified and evaluated compliance with relevant laws and regulations and made enquiries of any instances of non-compliance;
discussed matters among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.


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.


Page 7

 
LAPWING ADVISERS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAPWING ADVISERS LTD (CONTINUED)


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Christopher Taylor FCA (senior statutory auditor)
for and on behalf of
Adler Shine LLP
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF

17 November 2023
Page 8

 
LAPWING ADVISERS LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
390,940
397,655

Cost of sales
  
(65,628)
-

Gross profit
  
325,312
397,655

Administrative expenses
  
(409,343)
(346,394)

Other operating income
 5 
-
6,979

Fair value movements
  
23,299
-

Operating (loss)/profit
 6 
(60,732)
58,240

Amounts written off investments
  
(400)
(1,400)

Interest receivable and similar income
 10 
9,421
7,483

Interest payable and similar expenses
 11 
(974)
(683)

(Loss)/profit before tax
  
(52,685)
63,640

(Loss)/profit for the financial year
  
(52,685)
63,640

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 14 to 24 form part of these financial statements.

Page 9

 
LAPWING ADVISERS LTD
REGISTERED NUMBER: 10506392

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 12 
5,075
6,766

Investments
 13 
32,143
8,844

  
37,218
15,610

Current assets
  

Debtors
 14 
279,867
292,319

Cash at bank and in hand
 15 
34,175
6,686

  
314,042
299,005

Creditors: amounts falling due within one year
 16 
(263,758)
(164,419)

Net current assets
  
 
 
50,284
 
 
134,586

Total assets less current liabilities
  
87,502
150,196

Creditors: amounts falling due after more than one year
 17 
(24,152)
(34,161)

Net assets
  
63,350
116,035


Capital and reserves
  

Called up share capital 
 19 
511,588
511,588

Share premium account
 20 
965,212
965,212

Profit and loss account
 20 
(1,413,450)
(1,360,765)

Total equity
  
63,350
116,035


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




P D Mayes
Director

Date: 17 November 2023

The notes on pages 14 to 24 form part of these financial statements.

Page 10

 
LAPWING ADVISERS LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2021
511,588
965,212
(1,424,405)
52,395



Profit for the year
-
-
63,640
63,640



At 1 January 2022
511,588
965,212
(1,360,765)
116,035



Loss for the year
-
-
(52,685)
(52,685)


At 31 December 2022
511,588
965,212
(1,413,450)
63,350


The notes on pages 14 to 24 form part of these financial statements.

Page 11

 
LAPWING ADVISERS LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(52,685)
63,640

Adjustments for:

Depreciation of tangible assets
1,691
2,256

Impairments of fixed assets
400
1,400

Interest paid
974
683

Interest received
(9,421)
(7,483)

Decrease/(increase) in debtors
21,873
(55,763)

Increase in creditors
87,310
12,049

Net fair value (gains)/losses recognised in P&L
(23,299)
-

Net cash generated from operating activities

26,843
16,782


Cash flows from investing activities

Purchase of unlisted and other investments
(400)
(8,794)

Net cash from investing activities

(400)
(8,794)

Cash flows from financing activities

Repayment of loans
(10,009)
(5,839)

Loans due from/(repaid to) shareholders
(30,000)
-

Interest paid
(974)
(683)

Net cash used in financing activities
(40,983)
(6,522)

Net (decrease)/increase in cash and cash equivalents
(14,540)
1,466

Cash and cash equivalents at beginning of year
1,524
58

Cash and cash equivalents at the end of year
(13,016)
1,524


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
34,175
6,686

Bank overdrafts
(47,191)
(5,162)

(13,016)
1,524


Page 12

 
LAPWING ADVISERS LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

6,686

27,489

34,175

Bank overdrafts

(5,162)

(42,029)

(47,191)

Debt due after 1 year

(34,161)

10,009

(24,152)

Debt due within 1 year

(30,321)

(4,509)

(34,830)


(62,958)
(9,040)
(71,998)

The notes on pages 14 to 24 form part of these financial statements.

Page 13

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Lapwing Advisers Limited is a private company limited by shares and registered in England and Wales. Its registered office address and principal place of business is 27 Old Gloucester Street, London, WC1N 3AXP.
The financial statements are presented in Sterling (£), rounded to the nearest £1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.

 
2.3

Going concern

The company made a loss for the year ended 31 December 2022 of £52,685 and at that date had net assets of £63,350. The cash flow statement showed a deficit in cash and cash equivalents of £13,016 at 31 December 2022. At the date of approving these accounts, the company has failed to retain adequate liquid capital to meet its regulatory requirements with the FCA.
The directors have prepared financial projections which anticipate the company will enter into contracts with clients that will provide adequate cash inflows to meet future liabilities. The majority shareholders have also committed to providing such financial support as is necessary to ensure all liabilities are settled as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. However, in the absence of the required funding being in place, this condition indicates the existence of a material uncertainty which may cast significant doubt over the company's ability to continue as a going concern.  
The directors are confident that the company will be able to secure sufficient cash inflows for the company to continue its activities for not less than 12 months from the date of approval of these financial statements. Accordingly, they have therefore prepared the financial statements on a going concern basis.

Page 14

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.

Page 15

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.8

Interest income

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

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Page 16

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

 
2.15

Creditors

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

 
2.16

Financial instruments

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

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
at fair value with changes recognised in the statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

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

Page 17

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

  
2.17

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgments, 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 that estimate affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.


4.


Turnover

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


2022
2021
£
£

Consultancy fees
170,372
92,143

Eurobond commissions
-
305,512

FX trading profits
220,568
-

390,940
397,655


All turnover arose within the United Kingdom.


5.


Other operating income

2022
2021
£
£

Government grants receivable
-
6,979


Page 18

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2022
2021
£
£

Exchange differences
(36,992)
139

Other operating lease rentals
128,334
43,960


7.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors and their associates:


2022
2021
£
£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements
13,000
11,750


8.


Employees

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


2022
2021
£
£

Wages and salaries
30,606
66,660

Social security costs
-
778

30,606
67,438


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


        2022
        2021
            No.
            No.







Directors
2
2



Employees
1
2

3
4

Page 19

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

9.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
18,036
23,077



10.


Interest receivable

2022
2021
£
£


Other interest receivable
9,421
7,483


11.


Interest payable and similar expenses

2022
2021
£
£


Other loan interest payable
974
683


12.


Tangible fixed assets





Fixtures and fittings

£



Cost or valuation


At 1 January 2022
20,832



At 31 December 2022

20,832



Depreciation


At 1 January 2022
14,066


Charge for the year on owned assets
1,691



At 31 December 2022

15,757



Net book value



At 31 December 2022
5,075



At 31 December 2021
6,766

Page 20

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Fixed asset investments





Investments in subsidiary companies
Unlisted investments
Other fixed asset investments
Total

£
£
£
£



Cost or valuation


At 1 January 2022
50
-
8,794
8,844


Additions
-
400
-
400


Revaluations
-
-
23,299
23,299


Amounts written off
-
(400)
-
(400)



At 31 December 2022
50
-
32,093
32,143






Net book value



At 31 December 2022
50
-
32,093
32,143



At 31 December 2021
50
-
8,794
8,844


Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Class of shares

Holding

Paloe Limited
England & Wales
Ordinary
100%
Paloe DC LLC*
Uzbekistan
Ordinary
100%

*Indirect subsidiary

The aggregate of the share capital and reserves as at 31 December 2022 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Paloe Limited
(17,254)
-

Paloe DC LLC*
5,692
(681)

Page 21

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022


14.


Debtors

2022
2021
£
£

Due after more than one year

Other debtors
14,718
113,720

Due within one year

Other debtors
262,290
148,035

Prepayments and accrued income
2,859
30,564

279,867
292,319



15.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
34,175
6,686

Less: bank overdrafts
(47,191)
(5,162)

(13,016)
1,524



16.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank overdrafts
47,191
5,162

Bank loans
10,000
10,000

Amounts owed to associates
50
50

Other taxation and social security
2,180
13,159

Other creditors
55,707
89,132

Accruals and deferred income
148,630
46,916

263,758
164,419


Page 22

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

17.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
24,152
34,161



18.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
10,000
10,000

Amounts falling due 1-2 years

Bank loans
10,000
10,000

Amounts falling due 2-5 years

Bank loans
14,152
24,161

34,152
44,161


The bank loan is repayable over 72 months. The monthly repayments are a fixed principal amount and interest is calculated at 2.5% per annum.


19.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



211,588 (2021 - 211,588) Participating shares of £1.00 each
211,588
211,588
300,000 (2021 - 300,000) Non-participating shares of £1.00 each
300,000
300,000

511,588

511,588


Page 23

 
LAPWING ADVISERS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

20.


Reserves

Share premium account

The share premium account represents amounts paid for share above their nominal value, less any costs incurred on the execution of the share issue.

Profit and loss account

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


21.


Commitments under operating leases

At 31 December 2022 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
83,317
87,451

Later than 1 year and not later than 5 years
69,772
143,384

153,089
230,835


22.


Transactions with directors

During the year the company made payments on behalf of the directors totalling £767,867 (2021 - £144,159) and was repaid £799,653 (2021 - £115,245). As at the balance sheet date directors owed the company £106,625 (2021 - were owed £15,452). No interest is charged on these balances.

 
Page 24