Company registration number 06417051 (England and Wales)
ACCENDO MARKETS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
ACCENDO MARKETS LIMITED
COMPANY INFORMATION
Directors
C Menegatos
S Zaman
G P White
Secretary
G P White
Company number
06417051
Registered office
Highstone House
165 High Street
Barnet
EN5 5SU
United Kingdom
Auditor
JF Francis Ltd
Francis House
2 Park Road
Barnet
Herts
EN5 5RN
United Kingdom
Business address
Highstone House
165 High Street
Barnet
EN5 5SU
United Kingdom
Bankers
Barclays Bank Plc
Canary Wharf Group
2 Churchill Place
Canary Wharf
London
E14 5RB
Solicitors
Michelmores LLP
48 Chancery Lane
London
WC2A 1JF
ACCENDO MARKETS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
ACCENDO MARKETS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -
The directors present the strategic report and financial statements for the year ended 28 February 2023.
Review of the business
The principal activity of the company continued to be that of brokerage services, authorised and regulated by the Financial Conduct Authority. In order to ensure that it continues to obtain regulatory approval by the authority, the company regularly uses the services of an external consultant to review and check the internal systems and controls maintained by the company's compliance officer.
The company has seen a decrease in revenue from £599,950 in 2022 to £472,270 this year due to lower market volatility. This temporary downturn was temporary and experienced across the CFD industry.
The directors are confident that the company can again continue to grow revenue in the coming year.
Future developments
The Directors recognise that the economic outlook for the coming years remains challenging and changes made in current year will benefit the company going forward.
The Directors consider that the company is well positioned to prosper post COVID and maintain and improve the profitability of recent years and the Directors remain optimistic that the business is well positioned to perform well in a tough and competitive market.
Principal risks and uncertainties
Competition from similar entities are a residual risk for the firm, though this is likely to be mitigated somewhat as the ESMA changes discourage new entrants to the market. Firms like Accendo Markets, with an existing client base, are likely to benefit from the increased entry barriers. There is an ongoing regulatory risk to the firm. Although the ESMA changes have firmly taken effect, there is a residual risk of further regulatory changes in future, either by ESMA or the FCA. However, the firm’s directors do not foresee any significant regulatory changes in the near future. Counterparties providing the trading platform and other services to the firm’s clients also represent a residual risk. Changes in their policies may affect Accendo Markets. The principal risks are further detailed in the Company’s pillar 3 statement at https://www.accendomarkets.com/pillar-3-disclosure/.
Key Performance Indicators
The KPIs are turnover, operating profit, net assets and number of employees, which are set out below:
2023
2022
Change
£
£
%
Turnover
472,270
599,950
(21.28)%
Operating profit/(loss)
180,491
281,222
35.82%
Profit/(loss) after tax
146,303
227,796
35.77%
Net assets
111,238
94,935
17.17%
Current assets as % of current liabilities (quick ratio)
312.22%
215.75%
44.72%
Average number of employees
5
6
(16.67)%
Going concern
At the time of approving the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The Directors have the appropriate procedures in place to review the capital adequacy requirements imposed by FCA on a daily basis. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
ACCENDO MARKETS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
S Zaman
Director
10 November 2023
ACCENDO MARKETS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
The directors present their annual report and financial statements for the year ended 28 February 2023.
Principal activities
The principal activity of the company continued to be that of brokerage services, authorised and regulated by the Financial Conduct Authority.
Results and dividends
The results for the year are set out on page 8.
Interim dividend for ordinary A shares was paid amounting to £130,000 (2022 - £227,000). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
C Menegatos
S Zaman
G P White
Auditor
In accordance with the company's articles, a resolution proposing that JF Francis Ltd be reappointed as auditor of the company will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of:
- Review of the business and future developments
- Going concern
- Principal risks and uncertainties.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
S Zaman
Director
10 November 2023
ACCENDO MARKETS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -
The directors are responsible for preparing the annual 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 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 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ACCENDO MARKETS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ACCENDO MARKETS LIMITED
- 5 -
Opinion
We have audited the financial statements of Accendo Markets Limited (the 'company') for the year ended 28 February 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 28 February 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
ACCENDO MARKETS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ACCENDO MARKETS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. We designed procedures capable of detecting non-compliance with laws and regulations and irregularities, including fraud, through:
Obtaining an understanding of the Company and its industry through discussions with management, and the application of our cumulative audit knowledge and experience of the industry to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements including tax, pensions, employment, health and safety, data protection and anti-bribery legislation, ESMA, and FCA (including Capital Adequacy requirements) and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
Identifying possible risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, whether there was potential for management bias in the reporting of events and transactions in the financial statements relating to principal accounting estimates and uncertainties.
Our audit procedures were designed to respond to the identified risks relating to non-compliance with laws and regulations and irregularities (including fraud) that are material to the financial statements.
ACCENDO MARKETS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ACCENDO MARKETS LIMITED
- 7 -
Our audit procedures in relation to non-compliance with laws and regulations included, but were not limited to:
Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations and reviewing correspondence with regulators and with solicitors; and
Communicating identified laws and regulations with the audit team and remaining alert to any indications of non-compliance throughout the audit; and
Considering the risk of non-compliance with laws and regulations; and
Considering whether the financial statement disclosures fairly represent the underlying transactions.
Our audit procedures in relation to irregularities and fraud included, but were not limited to:
Making enquiries of directors and management as to where they considered there was susceptibility to fraud, and whether they had knowledge of actual, suspected or alleged fraud; and
Gaining an understanding of the internal controls established to mitigate risks relating to fraud; and
Discussing the risk of fraud and management bias with the audit team and remaining alert to any indications of fraud and management bias throughout the audit; and
Addressing the risk of management override of controls by testing journal entries, considering the rationale behind significant or unusual transactions, and reviewing accounting estimates
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management.
Because of these inherent limitations, 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. This 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 auditor’s report.
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Frank Yiallouris
Senior Statutory Auditor
For and on behalf of JF Francis Ltd
10 November 2023
Chartered Certified Accountants
Statutory Auditor
Francis House
2 Park Road
Barnet
Herts
United Kingdom
EN5 5RN
ACCENDO MARKETS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
472,270
599,950
Cost of sales
(129,220)
(160,552)
Gross profit
343,050
439,398
Administrative expenses
(162,559)
(164,296)
Other operating income
6,120
Operating profit
4
180,491
281,222
Interest receivable and similar income
8
130
8
Profit before taxation
180,621
281,230
Tax on profit
9
(34,318)
(53,434)
Profit for the financial year
146,303
227,796
The income statement has been prepared on the basis that all operations are continuing operations.
ACCENDO MARKETS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
28 FEBRUARY 2023
28 February 2023
- 9 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
12
141,231
105,347
Cash at bank and in hand
22,423
71,608
163,654
176,955
Creditors: amounts falling due within one year
13
(52,416)
(82,020)
Net current assets
111,238
94,935
Capital and reserves
Called up share capital
15
90,001
90,001
Share premium account
99
99
Profit and loss reserves
21,138
4,835
Total equity
111,238
94,935
The financial statements were approved by the board of directors and authorised for issue on 10 November 2023 and are signed on its behalf by:
S Zaman
G P White
Director
Director
Company Registration No. 06417051
ACCENDO MARKETS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2021
90,001
99
4,039
94,139
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
-
227,796
227,796
Dividends
10
-
-
(227,000)
(227,000)
Balance at 28 February 2022
90,001
99
4,835
94,935
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
146,303
146,303
Dividends
10
-
-
(130,000)
(130,000)
Balance at 28 February 2023
90,001
99
21,138
111,238
ACCENDO MARKETS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
133,813
275,608
Income taxes paid
(53,128)
(68,683)
Net cash inflow from operating activities
80,685
206,925
Investing activities
Interest received
130
8
Net cash generated from investing activities
130
8
Financing activities
Dividends paid
(130,000)
(227,000)
Net cash used in financing activities
(130,000)
(227,000)
Net decrease in cash and cash equivalents
(49,185)
(20,067)
Cash and cash equivalents at beginning of year
71,608
91,675
Cash and cash equivalents at end of year
22,423
71,608
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 12 -
1
Accounting policies
Company information
Accendo Markets Limited is a company limited by shares incorporated in England and Wales. The registered office is Highstone House, 165 High Street, Barnet, United Kingdom, EN5 5SU.
The principal activity of the company continued to be that of brokerage services, authorised and regulated by the Financial Conduct Authority.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional and presentational currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Covid19 pandemic has affected the company. However, the Company has enough cash reserves to ensure that the Company stays operational. It has also the continued support of the Directors. Thus, the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents commissions receivable from providing brokerage services. Turnover is recognised when the brokerage services are provided.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.13
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.
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 16 -
2
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.
There are no significant judgements or estimates involved in the preparation of the financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Commissions receivable
472,270
599,950
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
472,270
599,950
2023
2022
£
£
Other revenue
Interest income
130
8
Grants received
-
6,120
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(6,120)
Operating lease charges
996
720
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 17 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
4,320
4,520
For other services
All other non-audit services
6,000
11,978
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Cost of sales
2
3
Management
3
3
Total
5
6
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
161,400
191,204
Social security costs
14,735
15,059
Pension costs
3,228
4,081
179,363
210,344
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
44,400
43,385
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
46
8
Other interest income
84
Total income
130
8
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
8
Interest receivable and similar income
(Continued)
- 18 -
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
46
8
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
34,318
53,434
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
180,621
281,230
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
34,318
53,434
Taxation charge in the financial statements
34,318
53,434
10
Dividends
2023
2022
£
£
Interim paid
130,000
227,000
11
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
141,002
105,125
Carrying amount of financial liabilities
Measured at amortised cost
17,792
25,407
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 19 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
21,717
Amounts owed by group undertakings
69,321
55,000
Amounts owed by undertakings in which the company has a participating interest
49,961
50,054
Other debtors
3
71
Prepayments and accrued income
229
222
141,231
105,347
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,044
Corporation tax
34,624
53,434
Other taxation and social security
3,179
Other creditors
3,152
1,115
Accruals and deferred income
14,640
23,248
52,416
82,020
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,228
4,081
The company operates a defined contribution pension scheme for all qualifying employees (including three directors). The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
90,000
90,000
90,000
90,000
Ordinary B share of £1 each
1
1
1
1
90,001
90,001
90,001
90,001
The holders of the ordinary A shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meeting of the Company.
The holders of the ordinary B share are entitled to receive dividends but have no voting rights.
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 20 -
16
Directors' transactions
Dividends totalling £130,000 (2022 - £227,000) were paid in the year in respect of shares held by the company's directors.
Included in other creditors due within a year is an interest free amount of £939 (2022 - £513) due to the directors that is interest free and repayable on demand.
17
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows and comprised of directors' salaries.
2023
2022
£
£
Aggregate compensation
44,400
43,385
Transactions with related parties
The company has taken advantage of exemption available under the FRS102 “the financial Reporting Standard applicable in the UK and Republic of Ireland” to not to disclose related party transactions with wholly owned subsidiaries within the group.
Other information
Included in the other debtors due within a year is an interest free amount of £49.961 (2022 - £50,054) due from the companies where the directors have controlling interests.
Included in the other creditors due within a year is an interest free amount of £1,611 (2022 - £Nil) due to the companies where the directors have controlling interests.
18
Ultimate controlling party
The ultimate parent company is Accendo Holdings Ltd, a company registered in England and Wales and the registered office is Highstone House, 165 High Street, Barnet, Herts, England, EN5 5SU, Copies of group financial statements can be obtained from the registered office address.
There is no ultimate single controlling party.
ACCENDO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 21 -
19
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
146,303
227,796
Adjustments for:
Taxation charged
34,318
53,434
Investment income
(130)
(8)
Movements in working capital:
(Increase)/decrease in debtors
(35,884)
3,078
Decrease in creditors
(10,794)
(8,692)
Cash generated from operations
133,813
275,608
20
Analysis of changes in net funds
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
71,608
(49,185)
22,423
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