Absolute Return Investment Advisers (ARIA) Limited 07091239 false 2022-04-01 2023-03-31 2023-03-31 The principal activity of the company is the provision of investment advisory services Digita Accounts Production Advanced 6.30.9574.0 true true true 07091239 2022-04-01 2023-03-31 07091239 2023-03-31 07091239 bus:Director6 2023-03-31 07091239 bus:OrdinaryShareClass1 2023-03-31 07091239 core:RetainedEarningsAccumulatedLosses 2023-03-31 07091239 core:ShareCapital 2023-03-31 07091239 core:CurrentFinancialInstruments 2023-03-31 07091239 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 07091239 core:FurnitureFittings 2023-03-31 07091239 core:OfficeEquipment 2023-03-31 07091239 bus:FRS102 2022-04-01 2023-03-31 07091239 bus:Audited 2022-04-01 2023-03-31 07091239 bus:FullAccounts 2022-04-01 2023-03-31 07091239 bus:RegisteredOffice 2022-04-01 2023-03-31 07091239 bus:Director1 2022-04-01 2023-03-31 07091239 bus:Director3 2022-04-01 2023-03-31 07091239 bus:Director5 2022-04-01 2023-03-31 07091239 bus:Director6 2022-04-01 2023-03-31 07091239 bus:Director7 2022-04-01 2023-03-31 07091239 bus:OrdinaryShareClass1 2022-04-01 2023-03-31 07091239 bus:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 07091239 3 2022-04-01 2023-03-31 07091239 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 07091239 core:ShareCapital 2022-04-01 2023-03-31 07091239 countries:RestWorldOutsideEurope 2022-04-01 2023-03-31 07091239 countries:UnitedKingdom 2022-04-01 2023-03-31 07091239 core:ComputerEquipment 2022-04-01 2023-03-31 07091239 core:FurnitureFittings 2022-04-01 2023-03-31 07091239 core:OfficeEquipment 2022-04-01 2023-03-31 07091239 core:UKTax 2022-04-01 2023-03-31 07091239 countries:EnglandWales 2022-04-01 2023-03-31 07091239 2022-03-31 07091239 core:RetainedEarningsAccumulatedLosses 2022-03-31 07091239 core:ShareCapital 2022-03-31 07091239 core:FurnitureFittings 2022-03-31 07091239 core:OfficeEquipment 2022-03-31 07091239 2021-04-01 2022-03-31 07091239 2022-03-31 07091239 bus:OrdinaryShareClass1 2022-03-31 07091239 core:RetainedEarningsAccumulatedLosses 2022-03-31 07091239 core:ShareCapital 2022-03-31 07091239 core:CurrentFinancialInstruments 2022-03-31 07091239 core:CurrentFinancialInstruments core:WithinOneYear 2022-03-31 07091239 core:FurnitureFittings 2022-03-31 07091239 core:OfficeEquipment 2022-03-31 07091239 bus:OrdinaryShareClass1 2021-04-01 2022-03-31 07091239 3 2021-04-01 2022-03-31 07091239 core:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 07091239 core:ShareCapital 2021-04-01 2022-03-31 07091239 countries:RestWorldOutsideEurope 2021-04-01 2022-03-31 07091239 countries:UnitedKingdom 2021-04-01 2022-03-31 07091239 core:UKTax 2021-04-01 2022-03-31 07091239 2021-03-31 07091239 core:RetainedEarningsAccumulatedLosses 2021-03-31 07091239 core:ShareCapital 2021-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 07091239

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 22

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Company Information

Directors

M Brittain

D Brimacombe

A McKenzie-Smart

C Thompson

Registered office

Building 2
Ground Floor
Guildford Business Park
Guildford
GU2 8XG

Auditors

Warrener Stewart Chartered Accountants
Harwood House
43 Harwood Road
London
SW6 4QP

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Strategic Report for the Year Ended 31 March 2023

The Directors present their strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the Company is the provision of investment advisory services

Fair review of the business

The Company made a pre-tax loss of £157,975 compared to a profit of £94,310 in 2022 and had net assets of £1,195,381 at the balance sheet date [2022 : £1,330,104].



The Directors consider this to be a satisfactory outcome for the year given the Company's focus on establishing a global wealth management platform with licences across a number of jurisdictions. The Company is in the process of changing its custodian internationally which will provide a much wider global distribution network, whilst developing new ‘front end tools’. The Directors consider the Company is well placed to take advantage of changes in the global financial services industry.

Principal risks and uncertainties

The Directors have undergone a thorough analysis of the risks inherent in the Company’s activities. The analysis identified the likelihood of the event occurring as well as the magnitude of the impact on the Company should the event occur. The Directors considered the level of control exercised by the Company to manage the risk that the event occurs, as well as identifying the persons to manage the risk and those persons to supervise and monitor the risk.

The main risk that the Directors identified was from the disintermediation of the Financial Services industry and its increasingly global nature, given historically much of the client business has been intermediated by professional advisers. The Directors consider that the Company’s size and the ability to react rapidly to changing market and industry conditions marks a considerable strength as well as presenting opportunities.

The Company also minimises this risk whenever possible through diversification and broadening of its service proposition. To this end, the Company has developed more ‘direct-to-client’ services, and developed platforms for new client types, such as a securitisation platform, which will move the Company towards a multi-distribution channel business.

Approved and authorised by the Board on 24 November 2023 and signed on its behalf by:
 

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Strategic Report for the Year Ended 31 March 2023

.........................................
M Brittain
Director

.........................................
A McKenzie-Smart
Director

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Directors' Report for the Year Ended 31 March 2023

The Directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the Company

The Directors who held office during the year were as follows:

M Brittain

D Brimacombe

A McKenzie-Smart

Ms K E Januchowska (Resigned 10 May 2023)

C Thompson

Financial performance

Objectives and policies

The company has been working closely with its affiliated MIFID2 entity in Europe which will accelerate assets under management in the coming months. The company has worked on developing a European platform proposition which will allow further distribution of company’s products and services, opening new distribution channels and European markets. This proposition is projected to deliver MifID2 investment platform for advisory firms, pension trustees and individual clients with access to international markets. There is a great potential for an investment platform in the European markets and the firm is considering a stronger engagement in the Irish market especially.

With the new distribution channels, Model Portfolio Service (MPS) is expected to grow as well. The firm is considering re-aligning the proposition to SFDR requirements and will consider implementation of ESG objectives to the suite of products. The issues surrounding ESG in particular are close to our hearts and we consider smooth transition within investment objectives and investment policies.


The proposition continues to broaden with the addition of mortgage advice for expats looking to secure UK property. By offering mortgage and protection advice the firm supports a holistic financial planning to retail clients.

The Companies compliance department was further strengthened during the year with new hires, as well as the beginnings of a new Irish based workforce.

Price risk, credit risk, liquidity risk and cash flow risk

The Company's Pillar 3 disclosures can be found on its website on www.ariacm.com.

Disclosure of information to the auditors

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Directors' Report for the Year Ended 31 March 2023

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Warrener Stewart Chartered Accountants as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 24 November 2023 and signed on its behalf by:
 

.........................................
M Brittain
Director

.........................................
A McKenzie-Smart
Director

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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.

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Independent Auditor's Report to the Members of Absolute Return Investment Advisers (ARIA) Limited

Opinion

We have audited the financial statements of Absolute Return Investment Advisers (ARIA) Limited (the 'Company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 31 March 2023 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 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 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 Director's 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 original financial statements were 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.

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Independent Auditor's Report to the Members of Absolute Return Investment Advisers (ARIA) Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, 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 Directors' 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 Statement of Directors' Responsibilities [set out on page 6], 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.

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Independent Auditor's Report to the Members of Absolute Return Investment Advisers (ARIA) Limited

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our assessment of the susceptibility of the entity's financial statements is considered to be low. We reached this conclusion after consideration of the following:

• Because of the regulated nature of the business, there are strong controls in place and adequate high level monitoring such that any unexpected items would be identified and enquired into by management; and
• Management decisions are closely overseen and monitored at Group level indicating that the likelihood of any single individual being in a position to override controls to effect fraud is low.

We designed our audit procedures to respond to identified risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements. Some of the specific procedures performed to detect irregularities, including fraud, are detailed below:

• The review of control accounts and journal entries for large, unusual or unauthorised entries;
• The analytical review of the detailed profit and loss account for unexpected variances or items that fell outside our understanding of the business;
• Obtaining and reviewing a list of connected persons and entities and reviewing ledgers for undisclosed related party transactions; and
• Reviewing compliance with the rules and guidelines set out by the Financial Conduct Authority.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to material misstatement in the financial statements or non-compliance with regulation. This risk increases the more the 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 because of fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Independent Auditor's Report to the Members of Absolute Return Investment Advisers (ARIA) Limited

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.

......................................
Colin Edney (Senior Statutory Auditor)
For and on behalf of Warrener Stewart Chartered Accountants, Statutory Auditor

Harwood House
43 Harwood Road
London
SW6 4QP

28 November 2023

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

1,690,744

1,480,270

Cost of sales

 

(633,547)

(366,443)

Gross profit

 

1,057,197

1,113,827

Administrative expenses

 

(1,338,421)

(977,422)

Operating (loss)/profit

4

(281,224)

136,405

Other interest receivable and similar income

5

-

530

Interest payable and similar expenses

6

123,249

(20,653)

   

123,249

(20,123)

(Loss)/profit before tax

 

(157,975)

116,282

Tax on (loss)/profit

9

23,252

(21,972)

(Loss)/profit for the financial year

 

(134,723)

94,310

The above results were derived from continuing operations.

The Company has no recognised gains or losses for the year other than the results above.

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

(Registration number: 07091239)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed Assets

 

Tangible Assets

10

7,208

6,270

Current assets

 

Debtors

11

3,286,280

2,873,288

Cash at bank and in hand

 

17,594

273,549

 

3,303,874

3,146,837

Creditors: Amounts falling due within one year

13

(2,115,701)

(1,823,003)

Net current assets

 

1,188,173

1,323,834

Net assets

 

1,195,381

1,330,104

Capital and reserves

 

Called up share capital

73,636

73,636

Retained earnings

1,121,745

1,256,468

Shareholders' funds

 

1,195,381

1,330,104

Approved and authorised by the Board on 24 November 2023 and signed on its behalf by:
 

.........................................
M Brittain
Director

.........................................
A McKenzie-Smart
Director

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Statement of Changes in Equity for the Year Ended 31 March 2023

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

73,636

1,256,468

1,330,104

Loss for the year

-

(134,723)

(134,723)

At 31 March 2023

73,636

1,121,745

1,195,381

Share capital
£

Retained earnings
£

Total
£

At 1 April 2021

73,636

1,173,170

1,246,806

Profit for the year

-

94,310

94,310

Dividends

-

(11,012)

(11,012)

At 31 March 2022

73,636

1,256,468

1,330,104

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

(Loss)/profit for the year

 

(134,723)

94,310

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

3,239

3,854

Finance income

5

-

(530)

Finance costs

6

3,851

3,373

Income tax expense

9

(23,252)

21,972

 

(150,885)

122,979

Working capital adjustments

 

(Increase)/decrease in trade debtors

11

(412,991)

308,451

Increase in trade creditors

13

315,950

916,369

Net cash flow from operating activities

 

(247,926)

1,347,799

Cash flows from investing activities

 

Interest received

5

-

530

Acquisitions of tangible assets

(4,178)

(3,426)

Net cash flows from investing activities

 

(4,178)

(2,896)

Cash flows from financing activities

 

Interest paid

6

(3,851)

(3,373)

Repayment of other borrowing

 

-

(1,378,526)

Dividends paid

16

-

(11,012)

Net cash flows from financing activities

 

(3,851)

(1,392,911)

Net decrease in cash and cash equivalents

 

(255,955)

(48,008)

Cash and cash equivalents at 1 April

 

273,549

321,557

Cash and cash equivalents at 31 March

 

17,594

273,549

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

The Company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Building 2
Ground Floor
Guildford Business Park
Guildford
GU2 8XG

These financial statements were authorised for issue by the Board on 24 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of investment management services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Notes to the Financial Statements for the Year Ended 31 March 2023

Tax

The corporation tax expense for the period comprises current tax.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible Assets

Tangible Assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Computer equipment

4 years straight line

Fixtures and fittings

5 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Notes to the Financial Statements for the Year Ended 31 March 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Judgements in applying accoutning polices and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year or in the year of revision and future years if the revision affects both current and future years.

Management considers the key estimates and judgements made in the financial statements to be related to:

A. Valuation of the shares, securities and other assets held by the Company's investment funds which determine the Company's management and performance fees receivable.

B. The timing of commissions and fees receivable from the Company's investment funds.

C. The company has also included commissions receivable by the Company which are payable to the firm's introducers as income and associated costs during the year. Under these agreements the Company considers it is acting as principal with an agent to pay the introducer rather than as the introducers' agent.

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Notes to the Financial Statements for the Year Ended 31 March 2023

3

Turnover

The analysis of the Company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Rendering of services

1,690,744

1,480,270

The analysis of the Company's Turnover for the year by market is as follows:

2023
£

2022
£

UK

1,690,744

1,481,400

Rest of world

-

(1,130)

1,690,744

1,480,270

4

Operating (loss)/profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

3,239

3,854

5

Other interest receivable and similar income

2023
£

2022
£

Other finance income

-

530

6

Interest payable and similar expenses

2023
£

2022
£

Interest expense on other finance liabilities

3,851

3,373

Foreign exchange (losses)/gains

(127,100)

17,280

(123,249)

20,653

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Notes to the Financial Statements for the Year Ended 31 March 2023

7

Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

831,873

531,427

Social security costs

49,041

27,495

Pension costs, defined contribution scheme

15,262

10,313

Redundancy costs

(15,000)

-

Other employee expense

49,436

38,953

930,612

608,188

The average number of persons employed by the Company (including Directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

18

15

18

15

8

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

18,250

7,750


 

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

-

23,252

UK corporation tax adjustment to prior periods

(23,252)

(1,280)

(23,252)

21,972

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Notes to the Financial Statements for the Year Ended 31 March 2023

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(157,975)

116,282

Corporation tax at standard rate

(30,015)

22,094

Effect of expense not deductible in determining taxable profit (tax loss)

25

1,272

Effect of tax losses

6,916

-

Decrease in UK and foreign current tax from adjustment for prior periods

-

(1,280)

Tax decrease from effect of capital allowances and depreciation

(178)

(114)

Total tax (credit)/charge

(23,252)

21,972

10

Tangible Assets

Fixtures and fittings
£

Office equipment
£

Total
£

Cost or valuation

At 1 April 2022

19,267

18,373

37,640

Additions

-

4,178

4,178

At 31 March 2023

19,267

22,551

41,818

Depreciation

At 1 April 2022

17,959

13,412

31,371

Charge for the year

461

2,778

3,239

At 31 March 2023

18,420

16,190

34,610

Carrying amount

At 31 March 2023

847

6,361

7,208

At 31 March 2022

1,309

4,961

6,270

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Notes to the Financial Statements for the Year Ended 31 March 2023

11

Debtors

Current

2023
£

2022
£

Trade debtors

-

-

Other debtors

2,986,477

2,706,761

Prepayments

36,760

37,846

Accrued income

263,043

128,681

 

3,286,280

2,873,288

Details of non-current trade and other debtors

£Nil (2022 -£2,547,169) of other debtors is classified as non current.

12

Cash and cash equivalents

2023
£

2022
£

Cash on hand

60

59

Cash at bank

17,534

273,490

17,594

273,549

13

Creditors

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

136,778

89,297

Amounts due to related parties

1,135,949

12,217

Social security and other taxes

 

-

10,013

Outstanding defined contribution pension costs

 

5,663

3,163

Other payables

 

658,523

1,492,792

Accruals

 

102,158

115,639

Income tax liability

9

76,630

99,882

 

2,115,701

1,823,003

 

Absolute Return Investment Advisers (ARIA) Limited

trading as ARIA Capital Management

Notes to the Financial Statements for the Year Ended 31 March 2023

14

Pension and other schemes

Defined contribution pension scheme

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £15,262 (2022 - £10,313).

Contributions totalling £5,663 (2022 - £3,163) were payable to the scheme at the end of the year and are included in creditors.

15

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

73,636

73,636

73,636

73,636

         

16

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £Nil per each Ordinary shares

 

-

 

11,012