Company Registration No. 01576951 (England and Wales)
Whitechurch Securities Limited
Annual report and financial statements
for the year ended 28 February 2023
Whitechurch Securities Limited
Company information
Directors
Robert Dyte
Daniel Gregory
Gaynor Newman
Kean Seager
Lauren Greatorex
Jacob Seager
Poppy Say
Benjamin Seager-Scott
Amanda Tovey
Secretary
Robert Dyte
Company number
01576951
Registered office
c/o Saffery LLP
St Catherine's Court
Berkeley Place
Bristol
BS8 1BQ
Independent auditor
Saffery Champness LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Whitechurch Securities Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 21
Whitechurch Securities Limited
Strategic report
For the year ended 28 February 2023
1

The directors present the strategic report for the year ended 28 February 2023.

 

The company continued to undertake its two main activities during the year, this consisted of Discretionary Investment Management services offering a broad spectrum of investment strategies and Financial Advisory services offering advice and solutions to individuals.

Business review

2022 was another turbulent year for markets as rampant inflation affected the global economy exacerbated by the war in Ukraine. Escalation in inflation, in particular related to energy prices led central banks around the globe to embark on a number of interest rate hikes in a bid to cool economies. Rising prices, which in the UK sparked a cost-of-living crisis affected sentiment over the year triggering fears of a global recession midyear, and whilst growth slowed considerably, a recession was narrowly avoided.

 

Given the economic backdrop set out above it was not surprising that it was a challenging year for the business. Gross inflows into our discretionary management service saw an 8% fall compared to the previous year, however, this was more than offset by a 20% reduction in gross outflows, leaving an improved net flows position when compared to 2021-22. There was also a slight decrease in new business fees from our Financial Advice service as clients showed some reluctance to take advice given the broader economic situation.

 

The ARC Balanced Index, which provides a good proxy for the asset mix of our money under management, fell 4.32% over the 12 months to the end of February 2023. Investment performance over the 12 months was mixed with a broadly equal number of strategies underperforming and outperforming when compared to their benchmark ARC indices. Overall, client money managed via our discretionary fund management service fell over the past year due to the combination of a small net outflow of funds and market performance. Money under management at the end of the 2022-23 financial year stood at £347,727,404 (2021-22 = £375,102,285).

 

For our financial advisory business, new advice fees fell for the year, and totalled £201,953 (2021-22 = £206,639) and as a result our advisory business returned a small loss for the year. Whilst this performance was a little disappointing, activity levels remain strong, and we are still receiving many new business leads so we are optimistic that fees will remain healthy through the coming financial year. We also continue to look for opportunities to purchase client banks from retiring advisers and have one purchase in the pipeline along with a small number of enquiries at an early stage.

 

Despite the challenges set out above our employees continued to successfully implement our hybrid working arrangements and we remain hugely appreciative of all our employees and their efforts during the year.

 

Given the headwinds experienced during the financial year it was encouraging to see the business remain profitable and we can confirm that pre-tax profits for 2022-23 totaled £116,602 (2021-22 = £530,434) based on turnover of £4,648,684 (2021-22 = £5,212,425).

Whitechurch Securities Limited
Strategic report (continued)
For the year ended 28 February 2023
2
Risks

The entire Board is responsible for the company’s risk management and for ensuring that suitable processes are in place to identify, manage and eliminate risks that threaten the company. These include Regulatory, Financial and Operational risks, and processes have been designed to mitigate risks where identified.

 

Markets remained volatile over the year as the war in Ukraine and extensive inflation affected investor confidence. The rising interest rate environment supported the rotation of market leadership seen at the end of 2021 and value stocks remained the standout performers for most of the year whilst growth stocks lagged. As 2023 progresses inflation is easing in many regions which should in turn lead to both improved consumer confidence and an eventual, albeit potentially slow reduction in interest rates.

 

Competition in the industry also presents an ongoing risk to the business. We continue to see aggressive pricing structures amongst competitors and platforms as well as significant levels of consolidation as competitors, backed by private equity finance, look to scale up their businesses.

 

Whilst we were able to continue to trade profitably throughout 2022-23, we have completed a thorough review of all costs incurred by the business and have removed those not adding value and we will expect to see the benefit of this in 2023-24.

 

We continue to maintain a strong compliance team which allows the company to pre-approve all new advice cases to reduce the risk of bad advice leading to poor client outcomes. As the number of clients advised grows through our asset purchase program, we continue to improve our processes to ensure that we meet our ongoing commitments to clients, and provide the service expected via our agreements. Whilst it is difficult to eliminate complaints completely, during the past twelve months, upheld complaints stood at three, which was a decrease of four when compared to 2021-22.

Going forward

The investment management business continues to focus on increasing the number of external financial advisers that are using our discretionary management service, whilst maintaining relationships with current introducers. Our Ethical strategies, now with a 7 yr. + track record, continue to be extremely popular, and we also have our newer Responsible Dynamics (passive) range.

 

We continue to see increased use of platforms by external advisers and will look to expand our external links and available strategies where appropriate. Our Ethical and Dynamic strategies (including Responsible Dynamics) are available via platform as well as directly. In 2021 as part of our commitment to ESG we signed up to the UNPRI and put in place a ‘Net-Zero’ policy for the company which along with our Responsible Investment policy is now available on our website.

 

The FCA’s Consumer Duty requirements will result in a large amount of work during the 2023-24 financial year, and we are currently working through the requirements in order to meet our deadlines.

 

For our advisory business we will continue to seek opportunities to acquire client banks from retiring financial advisers and this will remain a key focus in the coming years. We are currently in discussion with one such adviser and hope to complete this deal during 2024. Discussions have also been held with several other advisers looking to retire further into the future and we believe we can continue to grow sensibly via this approach by agreeing to a small number of deals each year where the business and client profiles match our own.

Whitechurch Securities Limited
Strategic report (continued)
For the year ended 28 February 2023
3
Going forward (continued)

Due to the expected economic conditions in 2023, we believe markets will remain volatile and this could have an adverse impact on income during the 2023-24. However, we are confident the underlying business is strong and will continue to grow due to the addition of clients via the recent asset purchases and our ongoing relationships with external introducers.

On behalf of the board

Robert Dyte
Director
23 June 2023
Whitechurch Securities Limited
Directors' report
For the year ended 28 February 2023
4

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 investment services and investment advice.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Robert Dyte
Daniel Gregory
Gaynor Newman
Kean Seager
Lauren Greatorex
Jacob Seager
Poppy Say
Benjamin Seager-Scott
Amanda Tovey
Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £185,217 (2022: £658,302)

Directors' insurance

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

Auditor

Saffery Champness LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Whitechurch Securities Limited
Directors' report (continued)
For the year ended 28 February 2023
5
Statement of directors' responsibilities

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:

 

 

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.

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
Robert Dyte
Director
23 June 2023
Whitechurch Securities Limited
Independent auditor's report
To the members of Whitechurch Securities Limited
6
Opinion

We have audited the financial statements of Whitechurch Securities 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 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

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 the audit:

Whitechurch Securities Limited
Independent auditor's report (continued)
To the members of Whitechurch Securities Limited
7
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:

 

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. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation. UK Tax legislation and The Financial Services and Markets Act 2000, on which The Financial Conduct Authority (FCA) Handbook is based.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

Whitechurch Securities Limited
Independent auditor's report (continued)
To the members of Whitechurch Securities Limited
8

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

 

The company is regulated by the FCA. We discussed the company’s authorisation and permitted activities with the CF10a and obtained evidence of this from the FCA register. We obtained additional evidence about compliance by reviewing the breaches registers that have to be maintained under the CASS handbook, correspondence with the FCA and the results of the testing of compliance with the FCA Client Asset “CASS” rules, which is a separate assurance assignment.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Neil Davies
Senior Statutory Auditor
For and on behalf of Saffery Champness LLP
26 June 2023
Chartered Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Whitechurch Securities Limited
Statement of comprehensive income
For the year ended 28 February 2023
9
2023
2022
Notes
£
£
Turnover
3
4,648,684
5,212,425
Cost of sales
(1,132,366)
(1,337,814)
Gross profit
3,516,318
3,874,611
Administrative expenses
(3,401,734)
(3,356,370)
Other operating income
1,510
1,596
Operating profit
4
116,094
519,837
Interest receivable and similar income
508
313
Interest payable and similar expenses
-
0
(2,521)
Other gains and losses
-
0
12,805
Profit before taxation
116,602
530,434
Tax on profit
7
(21,530)
(103,723)
Profit for the financial year
95,072
426,711

The Income Statement has been prepared on the basis that all operations are continuing operations.

Whitechurch Securities Limited
Statement of financial position
As at 28 February 2023
28 February 2023
10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
23,301
40,552
Current assets
Debtors
11
641,908
764,871
Cash at bank and in hand
616,969
759,850
1,258,877
1,524,721
Creditors: amounts falling due within one year
12
(336,617)
(525,316)
Net current assets
922,260
999,405
Total assets less current liabilities
945,561
1,039,957
Provisions for liabilities
(5,229)
(9,480)
Net assets
940,332
1,030,477
Capital and reserves
Called up share capital
16
2,000
2,000
Profit and loss reserves
938,332
1,028,477
Total equity
940,332
1,030,477
The financial statements were approved by the board of directors and authorised for issue on 23 June 2023 and are signed on its behalf by:
Robert Dyte
Director
Company Registration No. 01576951
Whitechurch Securities Limited
Statement of changes in equity
For the year ended 28 February 2023
11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2021
2,000
1,260,068
1,262,068
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
426,711
426,711
Dividends
8
-
(658,302)
(658,302)
Balance at 28 February 2022
2,000
1,028,477
1,030,477
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
95,072
95,072
Dividends
8
-
(185,217)
(185,217)
Balance at 28 February 2023
2,000
938,332
940,332
Whitechurch Securities Limited
Notes to the financial statements
For the year ended 28 February 2023
12
1
Accounting policies
Company information

Whitechurch Securities Limited is a private company limited by shares incorporated in England and Wales. The registered office is c/o Saffery LLP, St Catherine's Court, Berkeley Place, Bristol, BS8 1BQ.

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 currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Independent Investment Analysis Limited. These consolidated financial statements are available from its registered office, C/O Saffery Champness LLP, St Catherine's Court, Berkeley Place, Bristol, England, BS8 1BQ.

1.2
Going concern

Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents commissions on the sale of insurance and pension products and fees for the provision of investment management services. Commissions are recognised at the point where the clients formally accept the products sold. Investment management fees are recognised in the period when the services are provided.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies (continued)
13

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
33% on cost and 25% on cost
Fixtures and fittings
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
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.

Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies (continued)
14
Basic financial assets

Basic financial assets, which include debtors, 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.

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.

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.

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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies (continued)
15
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.

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.

 

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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.

1.10
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
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.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
16
3
Turnover and other revenue

The turnover and profit before tax are attributable to the one principal activity of the company and arises from the provision of services. All turnover arose from activities carried out in the UK.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,300
19,150
Depreciation of owned tangible fixed assets
19,968
21,290
Operating lease charges
116,289
115,651
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administration
34
35
Advisors
4
3
Total
38
38

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,613,350
1,648,266
Social security costs
187,394
174,375
Pension costs
31,539
30,648
1,832,283
1,853,289

 

6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
456,535
506,769
Company pension contributions to defined contribution schemes
6,489
7,277
463,024
514,046
Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
6
Directors' remuneration (continued)
17

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2022 - 6).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
102,444
105,463
Company pension contributions to defined contribution schemes
1,321
1,320
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
25,781
102,337
Deferred tax
Origination and reversal of timing differences
(4,251)
(1,170)
Changes in tax rates
-
0
2,556
Total deferred tax
(4,251)
1,386
Total tax charge
21,530
103,723

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
116,602
530,434
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
22,154
100,782
Tax effect of expenses that are not deductible in determining taxable profit
551
405
Tax effect of income not taxable in determining taxable profit
-
0
(1,989)
Adjustments in respect of prior years
-
0
454
Permanent capital allowances in excess of depreciation
(155)
(844)
Deferred tax adjustments in respect of prior years
(1,020)
2,275
Dividend income
-
0
(193)
Chargeable gains/(losses)
-
0
2,833
Taxation charge for the year
21,530
103,723
Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
18
8
Dividends
2023
2022
£
£
Final paid
185,217
658,302
9
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 March 2022
170,595
5,605
176,200
Additions
2,635
82
2,717
Disposals
(2,015)
-
0
(2,015)
At 28 February 2023
171,215
5,687
176,902
Depreciation and impairment
At 1 March 2022
131,738
3,910
135,648
Depreciation charged in the year
19,153
815
19,968
Eliminated in respect of disposals
(2,015)
-
0
(2,015)
At 28 February 2023
148,876
4,725
153,601
Carrying amount
At 28 February 2023
22,339
962
23,301
At 28 February 2022
38,857
1,695
40,552
10
Subsidiaries

Details of the company's subsidiaries at 28 February 2023 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Whitechurch (Nominees) Limited
C/O Saffery Champness LLP, St Catherine's Court, Berkeley Place, Bristol, England, BS8 1BQ
Dormant
Ordinary
100
0
Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
19
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
50,762
207,359
Other debtors
69,050
-
0
Prepayments and accrued income
522,096
557,512
641,908
764,871
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
36,457
80,691
Corporation tax
5,903
22,236
Other taxation and social security
114,399
138,028
Other creditors
19,645
13,868
Accruals and deferred income
160,213
270,493
336,617
525,316
13
Securities

The bank has a debenture including a fixed charge all over present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and a first floating charge over all assets and undertaking both present and future dated 21 April 2015.

 

It also has a fixed charge over book and other debts, goodwill, uncalled capital and intellectual property and a floating charge over all other assets dated 28 January 1994.

14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
31,539
30,648

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
20
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
5,229
9,480
2023
Movements in the year:
£
Liability at 1 March 2022
9,480
Credit to profit or loss
(4,251)
Liability at 28 February 2023
5,229

The deferred tax liability set out above is expected to reverse in future years and relates to accelerated capital allowances.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
2,000
2,000
2,000
2,000

Each share is entitled to one voting right and an equal share of distributions on winding up.

17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
100,082
107,155
Between two and five years
160,936
260,057
261,018
367,212
Whitechurch Securities Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
21
18
Related party transactions

During the year a director was advanced £124,050 (2022: £111,473) and repaid £55,000 (2022: £357,473). At the balance sheet date £69,050 (2022: £nil) was owed to the company by the director. No interest is charged on this balance.

 

At the balance sheet date, the company was owed £1,775 (2022: £2,913) from fellow group entities.

19
Ultimate controlling party

The company is a wholly owed subsidiary of Independent Investment Analysis Limited, a company incorporated in England and Wales. Group accounts may be obtained from the registered office at C/O Saffery Champness LLP, St Catherine's Court, Berkeley Place, Bristol, England, BS8 1BQ.

The company's ultimate controlling party is Kean Seager by virtues of this majority interest (including family interest) in the company's parent company.

20
Client monies

The client monies held by the company at the balance sheet date amounted to £12,358,551 (2022: £17,126,310) and were held in accounts with HSBC Bank plc and Lloyds Bank plc. The market value of client investments held by the company as at the balance sheet date was £306,668,886 (2022: £357,975,975).

21
Pillar 3 disclosures

Whitechurch Securities Limited, a company that is regulated by the Financial Conduct Authority (FCA) and has documented the disclosures under the IFPR and CRDIV guidelines and these are available on their website at www.whitechurch.co.uk.

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