Company Registration No. 05281855 (England and Wales)
OAKHAM WEALTH MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
OAKHAM WEALTH MANAGEMENT LIMITED
COMPANY INFORMATION
Director
Mr P J Denley
Chairman
Mr J R Beaumont
Secretary
Mr P J Denley
Company number
05281855
Registered office
Berkeley Square House
Berkeley Square
London
W1J 6BD
Auditor
Riches & Company
34 Anyards Road
Cobham
Surrey
KT11 2LA
OAKHAM WEALTH MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
OAKHAM WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The director presents the strategic report for the year ended 31 October 2023.

Fair review of the business

Oakham’s primary focus is the management of its clients' assets. The company manages portfolios for private and professional clients, investing across the globe via a broad range of asset classes. The target is superior long-term investment returns.

 

It is worth considering the 12 months to October 2023 in light of the challenges faced in the previous year. In 2022, the spike in inflation surprised central bankers and financial markets. Central bankers needed to raise interest rates aggressively to reduce inflation pressures, engineering a slowdown in most advanced economies. As a result, the start of 2023 was characterized by concerns over inflation, and fears that urgent tight monetary policy would cause recession. Over the course of the first half of 2023, however, there was growing optimism that inflation was under control and the global economy would achieve a soft landing.

 

In the context of the economic environment described above, global equity markets performed well in the first 9 months of the period, as fears of inflation and recession ebbed. Technology stocks, which had suffered the most in 2022, bounced furthest. These tech stocks also found strength due to the emergence of generative artificial intelligence (AI), promising to enhance their business models. Seven key US tech companies dominated the S&P 500, namely Apple, Amazon, Microsoft, Tesla, Alphabet, Meta, and Nvidia.

 

However, markets experienced wild swings in the third quarter of 2023. Having started the quarter optimistically, global investors increasingly focused on the challenging outlook for inflation, economic growth, and the growing expectation that interest rates will remain higher for a longer period than previously expected.

 

Considering the swings in asset markets, the firm’s income remained relatively steady. On a more positive note, significant progress was made on key strategic partnerships which will support growth in revenues and profitability in the future. Oakham also onboarded some key new clients including the firm’s largest ultra-high net worth client toward the end of the period.

 

Separately, over the course of the year, significant progress was made on new strategic partnerships which will support growth in revenues and profitability in the future. In addition, management continued to improve the firm’s proposition in the following key ways:

 

Sustainable Investing

In the year, management also focused resources on growing its sustainable investment capability.  Increasingly, the global investment industry is being encouraged to incorporate concepts of sustainable investing, and the UK has been a significant driver of change. 

 

Oakham have always been long term investors. It is somewhat of a coincidence that, by nature, Oakham’s investment style has always tended to incorporate many of the key elements of sustainable investing. 

 

Sustainable investing is a broad term incorporating criteria such as ‘Environmental, Social and Governance’ (ESG) on which companies are measured.  The concept of ESG investing was derived from the UN Principles of Responsible Investing (UNPRI) to which Oakham is a signatory.  ESG investors focus on whether companies are adopting practices that will mitigate risk and ensure their long term sustainability.  As a result, ESG issues are increasingly shaping the way companies do business around the globe. 

 

Given that Oakham’s investment ethos already included key elements of sustainability, incorporating this theme has meant evolution rather than revolution.  It is therefore important to state that there will not be a significant change to the firm’s investment strategy. 

OAKHAM WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Sustainable Investing (continued)

As part of Oakham’s commitment to sustainable investment, in addition to the UNPRI, the firm is also a signatory to the UK Sustainable Investment & Finance Association (UKSIF), the Net Zero Asset Managers Initiative (NZAM), the Finance For Biodiversity Foundation, the Terra Carta, and the Living Wage Foundation. We also support the Good Business Charter and the Better Business Act. Lastly, we endeavour to incorporate the UN Sustainable Development Goals, not only in our investment strategy but also our corporate activities and operations, considering issues ranging from climate change to inequality.

 

A certified B Corporation

Oakham is a certified B Corporation.

 

B Corps are companies that have met certain standards of social and environmental performance, accountability, and transparency.  A commitment to the environment and society is increasingly on everyone’s agenda, and Oakham joins a handful of firms in the UK finance sector that have reached the required standard.

Principal Risks and Uncertainties

Principal risks and uncertainties can be summarised as follows:

 

Financial instrument risks

The financial instruments used by the company arise wholly and directly from its activities, comprising debtors, cash at bank, trade creditors and loans. The company monitors these risks regularly.

 

Regulatory risks

The company is authorised by the Financial Conduct Authority of the UK and as such is subject to the constantly evolving regulatory landscape. Professional compliance consultants are retained on a monthly basis to ensure the company and its staff continue to meet their regulatory responsibilities.

 

Competitive risks

The wealth management industry is a competitive environment, and new developments in areas such as technology can enhance services and facilitate new lower cost business models. We are committed to utilising new technology where it genuinely adds value.

 

Market risk

The company’s revenue is derived from the assets that it manages. Assets under management are determined by a combination of net asset growth from new business and movements in asset markets. Rising asset markets have a positive impact on revenue and falling asset markets have a negative effect.

On behalf of the board

Mr P J Denley
Director
19 February 2024
OAKHAM WEALTH MANAGEMENT LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 October 2023.

Principal activities

The firm manages diversified investment portfolios on a bespoke, discretionary basis for private families, pension funds, trustees, charities and their related entities.

 

The firm is authorised and regulated by the Financial Conduct Authority (FCA) and holds full Part IV permissions. Through ISD passporting legislation, it is also authorised to conduct business in a number of EU countries.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Mr P J Denley
Acquisition of own shares

In the year ended 31 October 2023 the company purchased some of its own shares. The details are listed below:

 

On 30 November 2023 834,000 Ordinary A shares, with a nominal value of 0.01, were purchased for cancellation. Also 25,946,600 Ordinary B Shares, with a nominal value of 0.0001, were purchased for cancellation. The total consideration was for the shares purchased for cancellation was £14,813.81.

 

The purchased shares represented 13% of the Ordinary A nominal value and 5% of the Ordinary B nominal value.

Auditor

The auditor, Riches & Company, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, as measured by Carbon Analytics, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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
Mr P J Denley
Director
19 February 2024
OAKHAM WEALTH MANAGEMENT LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

OAKHAM WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OAKHAM WEALTH MANAGEMENT LIMITED
- 5 -
Opinion

We have audited the financial statements of Oakham Wealth Management Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

OAKHAM WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OAKHAM WEALTH MANAGEMENT LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

OAKHAM WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OAKHAM WEALTH MANAGEMENT LIMITED
- 7 -

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

 

As part of our planning process:

 

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors of the entity.

 

 

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.

Richard Bolton (Senior Statutory Auditor)
For and on behalf of Riches & Company
20 October 2023
Chartered Accountants
Statutory Auditor
34 Anyards Road
Cobham
Surrey
KT11 2LA
OAKHAM WEALTH MANAGEMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
523,586
453,167
Cost of sales
(170,527)
(10,153)
Gross profit
353,059
443,014
Administrative expenses
(368,893)
(432,474)
Operating (loss)/profit
4
(15,834)
10,540
Other interest receivable and similar income
7
(5,316)
15,081
Interest payable and similar expenses
8
(3,687)
(2,972)
(Loss)/profit before taxation
(24,837)
22,649
Tax on (loss)/profit
9
1,579
(2,219)
(Loss)/profit for the financial year
(23,258)
20,430

The profit and loss account has been prepared on the basis that all operations are continuing operations.

OAKHAM WEALTH MANAGEMENT LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,362
2,039
Investments
11
88,137
93,453
89,499
95,492
Current assets
Debtors
13
148,301
192,639
Cash at bank and in hand
1,177
13,471
149,478
206,110
Creditors: amounts falling due within one year
14
(116,285)
(130,838)
Net current assets
33,193
75,272
Total assets less current liabilities
122,692
170,764
Creditors: amounts falling due after more than one year
15
(15,833)
(25,833)
Net assets
106,859
144,931
Capital and reserves
Called up share capital
19
121,246
132,181
Share premium account
20
56,359
60,238
Capital redemption reserve
21
91,046
91,046
Profit and loss reserves
22
(161,792)
(138,534)
Total equity
106,859
144,931
The financial statements were approved and signed by the director and authorised for issue on 19 February 2024
Mr P J Denley
Director
Company Registration No. 05281855
OAKHAM WEALTH MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2021
213,431
42,284
-
0
(138,829)
116,886
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
20,430
20,430
Issue of share capital
19
9,796
17,954
-
-
27,750
Own shares acquired
-
-
-
(20,135)
(20,135)
Purchase of own shares
(91,046)
-
91,046
-
-
Balance at 31 October 2022
132,181
60,238
91,046
(138,534)
144,931
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
-
-
(23,258)
(23,258)
Other movements
(10,935)
(3,879)
-
-
(14,814)
Balance at 31 October 2023
121,246
56,359
91,046
(161,792)
106,859
OAKHAM WEALTH MANAGEMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
28,440
633
Interest paid
(3,687)
(2,972)
Income taxes refunded
1
-
0
Net cash inflow/(outflow) from operating activities
24,754
(2,339)
Investing activities
Proceeds from disposal of investments
5,316
-
0
Repayment of loans
(12,234)
-
0
Income received from investments
(5,316)
-
0
Net cash used in investing activities
(12,234)
-
Financing activities
Proceeds from issue of shares
(14,814)
27,750
Purchase of treasury shares
-
0
(20,135)
Repayment of borrowings
(10,000)
(10,000)
Net cash used in financing activities
(24,814)
(2,385)
Net decrease in cash and cash equivalents
(12,294)
(4,724)
Cash and cash equivalents at beginning of year
13,471
18,195
Cash and cash equivalents at end of year
1,177
13,471
OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
1
Accounting policies
Company information

Oakham Wealth Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is Berkeley Square House, Berkeley Square, London, W1J 6BD. The principal place of business is Avon House, Avonmore Road, London, W14 8TS.

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 £.

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

1.2
Going concern

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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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.

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:

Computer equipment
25% on reducing balance

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
Fixed asset investments

Unlisted investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.

OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
1.6
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.

1.7
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.

1.8
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 balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.9
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.

1.10
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 profit and loss account 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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.

1.12
Retirement benefits

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

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
1.14

Impairment of fixed assets

The carrying amounts of the Company's assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated.

 

An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the profit and loss account unless it arises on a previously revalued fixed asset.

1.15

Provisions

A provision is recognised when there is a legal or constructive obligation arising from past events where it is probable that there will be an outflow of benefits that can be reliably estimated. The estimated outflow is management's best estimate of the expenditure required to settle to present obligation at the balance sheet date. Recoveries on insurance policies are recognised when it is virtually certain that an inflow of economic benefits will arise.

2
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.

3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
(5,316)
15,081
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(29)
62
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
10,500
Depreciation of owned tangible fixed assets
468
680
Loss on disposal of tangible fixed assets
209
-
OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
5
Employees

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

2023
2022
Number
Number
Directors
1
1
Staff
5
5
Total
6
6

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
194,437
246,714
Social security costs
14,326
22,872
Pension costs
7,461
10,190
216,224
279,776
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
23,750
80,175
7
Interest receivable and similar income
2023
2022
£
£
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
(5,316)
15,081
Disclosed on the profit and loss account as follows:
Other interest receivable and similar income
(5,316)
15,081

Investment income includes the following:

Interest on financial assets measured at fair value through profit or loss
(5,316)
15,081
OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
3,687
2,972
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(1,579)
2,219

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(24,837)
22,649
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(4,719)
4,303
Tax effect of expenses that are not deductible in determining taxable profit
3,300
(1,936)
Tax effect of utilisation of tax losses not previously recognised
1,579
(2,280)
Unutilised tax losses carried forward
(1,579)
2,219
Capital allowances
(71)
(87)
Pensions
(89)
-
0
Taxation (credit)/charge for the year
(1,579)
2,219
OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
10
Tangible fixed assets
Computer equipment
£
Cost
At 1 November 2022
8,385
Disposals
(1,705)
At 31 October 2023
6,680
Depreciation and impairment
At 1 November 2022
6,346
Depreciation charged in the year
468
Eliminated in respect of disposals
(1,496)
At 31 October 2023
5,318
Carrying amount
At 31 October 2023
1,362
At 31 October 2022
2,039
11
Fixed asset investments
2023
2022
£
£
Unlisted investments
88,137
93,453

The amount of change in the fair value of the financial instruments measured at fair value through profit and loss attibutable to credit risk is nil because the change is fully attributable to market risk.

Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 November 2022
93,453
Return of capital
(5,316)
At 31 October 2023
88,137
Carrying amount
At 31 October 2023
88,137
At 31 October 2022
93,453
OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
12
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
88,137
93,453

Investments are recognised at fair value through profit and loss, where the fair value is derived from an open market valuation. The fair value of these investments at 31st October 2023 was £88,137 (2022 - £93,453) and the change in value recognised in the income statement was a £5,316 loss (2022- £15,081 gain).

13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
45,037
63,386
Other debtors
27,456
25,201
Prepayments and accrued income
34,739
64,561
107,232
153,148
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
41,069
39,491
Total debtors
148,301
192,639
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
16
10,000
10,000
Trade creditors
14,523
11,102
Taxation and social security
11,456
19,176
Other creditors
62,066
76,515
Accruals and deferred income
18,240
14,045
116,285
130,838
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
16
15,833
25,833
OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
16
Loans and overdrafts
2023
2022
£
£
Other loans
25,833
35,833
Payable within one year
10,000
10,000
Payable after one year
15,833
25,833
17
Deferred taxation

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

Assets
Assets
2023
2022
Balances:
£
£
Tax losses
41,069
39,491
2023
Movements in the year:
£
Asset at 1 November 2022
(39,491)
Credit to profit or loss
(1,578)
Asset at 31 October 2023
(41,069)

The deferred tax asset set out above relates to the utilisation of tax losses against future expected profits of the same period.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
7,461
10,190

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.

OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
6,404,500
7,238,500
64,045
72,385
Ordinary B of 0.01p each
572,024,699
597,960,000
57,201
59,796
578,429,199
605,198,500
121,246
132,181

The A shares rank equally and carry full voting rights and are entitled to full participation in dividend distributions. No A shares bear rights as regards capital, to participate in a distribution (including on winding up); neither are any shares redeemable at the option of the company or shareholder.

 

The B shares rank equally and carry full voting rights and are entitled to full participation in dividend distributions.

Movements in share capital during the year are as follows:

 

834,000 Ordinary A shares, with a nominal value of 0.01, were purchased for cancellation.

 

25,946,600 Ordinary B shares, with a nominal value of 0.0001, were purchased for cancellation.

 

 

20
Share premium account
2023
2022
£
£
At the beginning of the year
60,238
42,284
Issue of new shares
-
0
17,954
Other movements
(3,879)
-
0
At the end of the year
56,359
60,238

In the year, Hugh Scotney's shares were repurchased and cancelled which resulted in reduced share premium of £3,879.

21
Capital redemption reserve
2023
2022
£
£
At the beginning of the year
91,046
-
0
Other movements
-
91,046
At the end of the year
91,046
91,046

In the prior year the company bought back 8,833,000 Ordinary A shares and 27,161,658 Ordinary B shares at a cost of £5,134.75 and £15,000, These transactions have given rise to a balance of £91,046 in the capital redemption reserve.

OAKHAM WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
22
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
(138,534)
(138,829)
(Loss)/profit for the year
(23,258)
20,430
Own shares acquired
-
0
(20,135)
At the end of the year
(161,792)
(138,534)
23
Directors' transactions

At the start of the period, the company owed £10,980 to Mr P J Denley, director. During the period the director was advanced £210,940 and repaid £187,726. At the end of the period the Mr P J Denley owed £12,233 to the company. No interest was charged on this amount and no amounts were written off. This amount will be repaid within 9 months of the year end.

24
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(23,258)
20,430
Adjustments for:
Taxation (credited)/charged
(1,579)
2,219
Finance costs
3,687
2,972
Investment income
5,316
(15,081)
Loss on disposal of tangible fixed assets
209
-
Depreciation and impairment of tangible fixed assets
468
680
Movements in working capital:
Decrease/(increase) in debtors
58,150
(17)
Decrease in creditors
(14,553)
(10,570)
Cash generated from operations
28,440
633
25
Analysis of changes in net debt
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
13,471
(12,294)
1,177
Borrowings excluding overdrafts
(35,833)
10,000
(25,833)
(22,362)
(2,294)
(24,656)
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