Company Registration No. 12816844 (England and Wales)
Eureka Strategy Limited
Unaudited financial statements
for the year ended 31 August 2022
Pages for filing with the registrar
Eureka Strategy Limited
Company information
Director
Professor Darrel Francis
Company number
12816844
Registered office
Flat 15
St Marys Mansions
St Marys Terrace
London
W2 1SQ
Accountants
Saffery LLP
71 Queen Victoria Street
London
United Kingdom
EC4V 4BE
Eureka Strategy Limited
Contents
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
Eureka Strategy Limited
Statement of financial position
As at 31 August 2022
1
2022
2021
Notes
£
£
£
£
Current assets
Debtors
6
30,981
1,101,829
Investments
8,518,682
19,972,172
8,549,663
21,074,001
Creditors: amounts falling due within one year
7
(9,035,425)
(18,169,492)
Net current (liabilities)/assets
(485,762)
2,904,509
Capital and reserves
Called up share capital
8
1,000
1,000
Profit and loss reserves
(486,762)
2,903,509
Total equity
(485,762)
2,904,509

 

The director of the company has elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 August 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 21 December 2023.
21 December 2023
Professor Darrel Francis
Director
Company Registration No. 12816844
Eureka Strategy Limited
Statement of changes in equity
For the year ended 31 August 2022
2
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 17 August 2020
-
0
-
0
-
Period ended 31 August 2021:
Profit for the period
-
2,662,049
2,662,049
Other comprehensive income:
Currency translation differences
-
366,460
366,460
Total comprehensive income for the period
-
3,028,509
3,028,509
Issue of share capital
8
1,000
-
1,000
Dividends
-
(125,000)
(125,000)
Balance at 31 August 2021
1,000
2,903,509
2,904,509
Year ended 31 August 2022:
Loss for the year
-
(844,336)
(844,336)
Other comprehensive income:
Currency translation differences
-
(2,345,935)
(2,345,935)
Total comprehensive income for the year
-
(3,190,271)
(3,190,271)
Dividends
-
(200,000)
(200,000)
Balance at 31 August 2022
1,000
(486,762)
(485,762)

 

Eureka Strategy Limited
Notes to the financial statements
For the year ended 31 August 2022
3
1
Accounting policies
Company information

Eureka Strategy Limited is a private company limited by shares incorporated in England and Wales. The registered office is Flat 15, St Marys Mansions, St Marys Terrace, London, W2 1SQ.

1.1
Reporting period

The company was incorporated on 17 August 2020 and the financial statements were prepared to 31 August 2021 in its first period of trading which is twelve and a half months. The financial statements for this year were prepared to 31 August 2022, therefore the comparative figures include a longer period of trade.

1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The functional currency of the company is deemed to be that of American dollars, on the basis that most trades are carried out in that currency and the investment portfolio is reported in the same.

 

The financial statements are presented in sterling, to correctly present transactions with the Director and all trades are translated to pounds sterling for corporation tax purposes.

 

Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

During the year there has been a significant downturn in the markets in which the company trades and there have been unfavourable movements in foreign exchange rates, generating significant losses for the company. However, atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Investment income

Investment income comprises interest, dividend and gains on disposals of investments.

 

Investment income from the sale of investment shares is recognised when a share has been disposed of and cash has been received.

 

Interest income is recognised using the effective interest rate method.

 

Dividend income is recognised when the right to receive payment is established.

1.5
Fixed asset investments

Interests in stocks are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Eureka Strategy Limited
Notes to the financial statements (continued)
For the year ended 31 August 2022
1
Accounting policies (continued)
4

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
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.

1.7
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.

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.

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.

Eureka Strategy Limited
Notes to the financial statements (continued)
For the year ended 31 August 2022
1
Accounting policies (continued)
5
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.

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.

 

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. 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. 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.

1.10
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 other comprehensive income.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Eureka Strategy Limited
Notes to the financial statements (continued)
For the year ended 31 August 2022
6
3
Investment income

An analysis of the company's investment income is as follows:

2022
2021
£
£
(Loss)/profit on disposal of investments
(301,590)
3,402,286
Dividends receivable
1,326,527
1,215,990
Interest receivable
2,005
8,628
1,026,942
4,626,904
4
Employees

The average monthly number of persons (including directors) employed by the company during the period was 1 (2021: 1). The director is remunerated by way of dividends.

Eureka Strategy Limited
Notes to the financial statements (continued)
For the year ended 31 August 2022
7
5
Fixed asset investments
2022
2021
£
£
Other investments
9,487,854
19,972,172
Movements in investments
Other
£
Cost or valuation
At 1 September 2021
21,130,210
Additions
84,524,441
Valuation changes
(548,858)
Foreign exchange movements
281,587
Disposals
(95,899,526)
At 31 August 2022
9,487,854
Impairment
At 1 September 2021
1,158,038
Impairment losses
969,172
Disposals
(1,158,038)
At 31 August 2022
969,172
Carrying amount
At 31 August 2022
8,518,682
At 31 August 2021
19,972,172
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
30,981
1,101,829
7
Creditors: amounts falling due within one year
2022
2021
£
£
Corporation tax
56,918
656,056
Other creditors
8,978,507
17,513,436
9,035,425
18,169,492
Eureka Strategy Limited
Notes to the financial statements (continued)
For the year ended 31 August 2022
8
8
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of $1 each
1,000
1,000
1,000
1,000

 

9
Related party transactions

During the year the company purchased the director's personal investment portfolio for £1,827,707 and this was offset against the director's loan account, thereby clearing the brought forward overdrawn position. The director withdrew net funds of £541,447 (2021: £1,209,400) from the investment portfolio and dividends of £200,000 (2021: £125,000) were declared in the year in respect of shares held by the company's director. The director incurred expenses on behalf of the company amounting to £28,691 (2021: £14,690) and paid corporation tax to HMRC on behalf of the company of £600,000 (£nil). The company owes the director £1,044,568 at the year end (2021: £1,070,383 was owed to the company).

10
Parent company

Ultimate controlling party is Professor Darrel Francis who wholly owns the company.

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