The directors present the strategic report and financial statements for the year ended 31 December 2023.
In 2023, XTB Limited focused its activities on growing its Retail CFD business and launching new longer term investment products such as cash shares and ETFs as part of its core goal to drive ‘value’ for shareholders.
Unlike 2022, 2023 saw a lower than average level of underlying market volatility. The S&P Volatility Index - which typically has a strong correlation with market interest from retail clients - hit its lowest levels since January 2020. This ultimately impacted the level of new client interest as well as product engagement as higher market volatility typically results in a greater number of speculative trading opportunities for clients. Nevertheless, the business attracted a greater number of commodities traders which attract higher spread revenues to Indices and forex, helping to maintain strong revenues despite a lower level of interest from clients in short term trading of Indices - which is our most popular asset class.
Thanks to significant product development in Q1 and Q2, the business was able to launch multiple longer term products in Q3 and Q4 as part of a shift in commercial strategy to improve its product competitiveness in the UK. The business launched real shares and ETFs in June as part of a soft launch, followed by a major marketing campaign in October. Moreover, the business also launched Investment Plans in October - a new passive investing product which enables clients to build their own portfolio of ETFs so that they can save money smartly. And finally, as part of our commitment to the Consumer Duty as well as offering clients fair value, the firm began passing on interest rates to clients for their uninvested funds from December.
As a result of the above, new retail client growth was significant - especially in Q4 - with business seeing a 93% growth in new clients over the year compared to 2022.
During Q1 & Q2 of 2023 the compliance team has focused on implementing XTB Ltd’s Consumer Duty plan. The consumer duty came into effect on the 31st July 2023 and involved enhancing processes throughout the entire business to ensure consumers receive a good outcome. The compliance team has also focused on the regulatory and operational background work for the release of XTB Ltd’s new product offering including fractional shares and ETFs.
Throughout 2024 the compliance team will be focused on strengthening the businesses consumer duty framework in addition to obtaining licences to begin offering ISA accounts.
The directors regularly review a number of financial and non-financial key performance indicators at both board and operational levels. The directors carry out monthly detailed reviews of each operational and support function at which all aspects of each business and key performance indicators are reviewed.
The Company's key performance indicators include the following:
| 2023 | 2022 | Change | Change |
Revenue | £ | £ | £ | £ |
Institutional sales income | 99,066 | 99,938 | -872 | -1% |
Retail Sales income | 4,646,000 | 3,824,912 | +821,088 | +21% |
Total | 4,745,066 | 3,924,850 | +820,216 | +21% |
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XTB Limited is exposed to a number of risks and uncertainties which could impact long term performance and achievement of strategic goals. As part of the ICARA XTB Limited carries out ongoing identification and assessment of the risks that could potentially pose a detrimental impact on XTB Limited's financial performance.
XTB Limited's board determines the risk management strategy and policies for the company, as well as assigning the monitoring and management of such risks as and where appropriate. The main areas of risk that arise out of XTB Limited's business activities are considered by the directors to be market risk, foreign currency risk, interest rate risk, credit risk, liquidity risk, regulatory risk and operational risk. The management of these risks is explained below.
Market Risk Market risk is the risk of losses in positions arising from movements in market prices. For all client trades held with XTB Limited, a second trade for the same value is held with XTB Limited's parent company thereby mitigating the risk of movements in market prices.
Foreign Currency Risk Foreign currency risk is a financial risk that exists when a financial transaction is denominated in a currency other than that of the base currency of XTB Limited. Foreign currency risk is managed by the finance department to minimise any potential losses arising from exposure.
Interest Rate Risk Interest rate risk is the risk of losses in on- and off-statement of financial position positions, arising from adverse movements in interest rates. XTB Limited does not currently hedge its interest rate exposure and consequently, its net income or loss is directly affected by changes in interest rates.
Credit Risk Credit risk is the risk that a counterparty of XTB Limited fails to meet its financial obligations to XTB Limited. The most significant credit risk that XTB Limited is exposed to relates to its exposure to the banks with which XTB Limited holds money. XTB Limited mitigates this risk by spreading any money held across various banking counterparties, and regularly reviewing the strength and reliability of such counterparties.
Liquidity Risk Liquidity risk is the risk that XTB Limited will not have sufficient funds to meet its liabilities. XTB Limited manages its liquidity needs through forecasts which are reviewed regularly to ensure sufficient funds exist to finance XTB Limited's current operational and investment cash flow requirements.
Regulatory Risk This is the risk associated with a breach of FCA and other regulatory rules. This can result in a financial fine, damage to reputation and restrictions on new or existing business. The FCA is particularly focused on ensuring that firms are adhering to the consumer duty. |
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Operational Risk Operational risk is the risk of losses stemming from inadequate or failed internal processes, people and systems or from external events. XTB Limited manages operational risk through the proper documentation of processes, segregation of duties and a regular and comprehensive review of XTB Limited's internal controls.
Under FCA regulations, XTB Ltd. is required to update its ICARA on an ongoing basis and assess any new risks that could impact financial resources.
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The Board of Directors confirm that they have acted in the best interests of the company’s members as a whole (as identified in s 172 (1)(a-f)) in relation to the decisions taken during the year ended 31 December 2023.
The company’s goal is to continue providing the highest level of service to its customers while also providing a competitive product. All the decisions that were taken by the Board during the year, particularly in adjusting our marketing strategy, continuing to increase our overall customer base whilst abiding to all financial laws and regulation, are aimed at increasing the company’s market share for the longer term.
The Board of Directors would like to thank the company’s highly skilled and well-trained employees who play an integral part in the company’s success. Where required, the Board is committed to continue recruiting high calibre employees who share the same values as that of the company’s.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2023.
No dividend will be distributed for the year ended 31 December 2023.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Going concern
Going Concern disclosures in the annual financial statements explain the key assumptions and judgements taken in determining whether a company is able to operate as a going concern.
The company has adequate financial resources for the size of its business and has no borrowings. The company has the continuing support of its shareholders, as well as measurable progress in the retail brokers' solution effort, providing comfort for the UK business’s future. Following the annual business review together with the parents board, the directors are confident that the company and the group have the required resources to continue operational existence for the foreseeable future. Accordingly, continue to adopt the going concern basis in preparing the annual report and accounts.
The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 2 day's purchases, based on the average daily amount invoiced by suppliers during the year.
Hillier Hopkins LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' report may differ from legislation in other jurisdictions.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the Directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures and the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
the nature of the industry and sector, control environment and business performance including the remuneration incentives and pressures of key management;
the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. We consider the results of our enquiries of management, about their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the management that represented a risk of material misstatement due to fraud.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, Financial Conduct Authority regulations and relevant tax legislation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Use of our report
This report is made solely to the company's members 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 Auditors' 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 for our audit work, for this report, or for the opinions we have formed.
The income statement has been prepared on the basis that all operations are continuing operations.
XTB Limited is a private company limited by shares incorporated in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
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 recognised in the income statement.
IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognised or disclosed. IFRS 13 mainly impacts the disclosures of the company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards.
Financial liabilities are recognised when the company becomes party to the contracts that give rise to them and are classified as loans or borrowings, payables, financial instruments fair valued through profit and loss or available for sale financial assets as appropriate. The company determines the classification of its financial assets and liabilities at initial recognition and, where allowed and appropriate, re-evaluate this designation at each financial year end.
When financial liabilities are recognised initially, they are measured at fair value, being the transaction price plus, in the case of financial assets not at fair value through profit or loss and borrowings, directly attributable transaction costs.
Included within Trade and Other Receivables (Other debtors) and Trade and Other Payables (Amounts owed to group undertakings) are the fair values of the clients' positions and the Company's matching hedged positions.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Ordinary shares are classified as equity. Any excess above the par value of shares received upon issuance of those shares is classified as share premium.
The tax expense represents the sum of the tax currently payable and deferred tax.
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
Client money
The Company holds money on behalf of clients in line with the regulatory body, the Financial Conduct Authority (FCA). Segregated client money bank accounts hold statutory trust status restricting the Company's access to these funds. These are not included within cash and cash equivalents on the Statement of Financial Position.
When preparing the financial statements, management makes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. Significant management judgements are as follows:
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment that future taxable income will be available against which deductible temporary timing differences and tax loss carry-forwards can be utilised.
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2023 reporting periods and have not been early adopted by the company. These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The charge for the year can be reconciled to the profit per the income statement as follows:
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
The directors believe that the carrying value of the financial instruments approximates their fair value at the balance sheet date.
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.
Deferred tax asset arises from taxable losses carried forward and these taxable losses are projected to be fully utilised from future taxable profits of the company. Further details on the company's business development are provided in the strategic report and the report of the directors.
Taxable losses carried forward in the current year are £1,633,955 (2022: £1,654,317).
Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:
There have been no post balance sheet events that require disclosure or adjustments to the financial statements.
The company's clients trade on a platform which promotes business for the parent company. The company earns income from its parent company based on the throughput. During the year this amounted to £4,59,873 (2022: £3,779,209). These revenues were earned in the normal course of business. During the year the company was charged £99,065 (2022: £99,938) for services rendered by the parent company.
The balance outstanding at the year end date due to the parent undertaking was £2,730,963 (2022 : £2,983,564). The amount is payable on demand and is interest free.
There are no other key management personnel, aside from the directors whose remuneration has been included within note 7 of the financial statements.
The Company is regulated by the FCA and is required to manage and monitor its capital resources in accordance with the FCA capital requirement rules as per the Investment Firms Prudential Regime (IFPR). XTB will hold 190k as its base capital requirement as it transitions to a 730k firm as per IFPR rules.
The Company's objectives through resource management is to ensure that it has sufficient capital to merit its regulatory obligations and to ensure that the Company will be able to continue as a going concern.
The Company's regulatory capital requirement is reported to the FCA on a quarterly basis, and regularly monitored by the Directors. The company has been fully compliant with their capital adequacy requirements throughout the year.
Financial assets and liabilities are recognised when the company becomes party to the contracts that give rise to them and are classified as loans or borrowings, receivables, payables or financial instruments fair valued through profit and loss as appropriate. The company determines the classification of its financial assets and liabilities at initial recognition and, where allowed and appropriate, re-evaluate this designation at each financial year end.
When financial assets and liabilities are recognised initially, they are measured at fair value, being the transaction price plus, in the case of financial assets not at fair value through profit or loss and borrowings, directly attributable transaction costs.
The table below sets out carrying amounts of financial assets and financial liabilities. The company considers the carrying amount of all financial assets and liabilities to be a reasonable approximation of fair value.
The company classified its financial assets and liabilities at 31 December 2023 as follows:
Financial assets | 2023 | 2022 |
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Loans and receivables Cash and cash equivalents | 115,178 6,874,601 | 10,523 6,540,356 |
Fair value through profit or loss | 1,486,410
| 1,442,601 |
| 8,476,189 | 7,992,940 |
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Financial liabilities |
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Financial liabilities at fair value through profit or loss | 259,609 | 1,863,761 |
Financial liabilities measured at amortised cost | 5,880,386 | 627,087
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| 6,139,995 | 2,535,848 |
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Net financial assets | 2,336,194 | 5,457,092 |
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market, do not qualify as trading assets and have not been designated as either fair value through profit and loss or available-for-sale.
Such assets are carried at amortised cost using the effective interest method if the time value of money is significant. Gains and losses are recognised in the income statement when the loans and receivables are derecognised or impaired, as well as through the amortisation process.
Impairment of financial assets
The company assesses at each financial year end whether a financial asset or group of financial assets is impaired.
Open positions
Open positions are classified as fair value through profit or loss.
The Company exposes itself to various financial risks through its activities, including market risk, credit risk and liquidity risk, for which control processes are in place to ensure risk is monitored and controlled.
Market Risk
Market risk is the risk of losses in positions arising from movements in market prices. For all client trades held with the company, a second trade for the same value is held with the parent company there mitigating the company's risk to movements in market prices. Therefore, the change in market prices would not affect the company net profit before tax.
Interest Rate Risk
The company does not currently hedge its interest rate exposure and consequently, its net income or loss is directly affected by changes in interest rates. Bank deposits bear interest at nominal rates and changes in these rates do not have any significant impact on the financial results.
The structure of financial assets and liabilities where cash flows are exposed to interest rate risk is as follows:
Financial Assets | 2023 | 2022 |
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Cash and cash equivalents | 6,874,601 | 6,540,356 |
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Total Financial Assets | 6,874,601 | 6,540,356 |
Impact of a change in interest rates by 50 base points (BP) on profit before tax is presented below. The analysis relies on the assumption that other variables, in particular exchange rates, will remain constant. The analysis was carried out based on the position at the year end.
Sensitivity Analysis - income/(expenses) of the period |
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| 2023 |
| 2022 |
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| Income | Decrease | Income | Decrease |
Income/(expenses) of the period | 34,373 | (34,373) | 32,702 | (32,702) |
Foreign Currency Risk
Foreign currency risk is a financial risk that exists when a financial transaction is denominated in a currency other than that of the base currency of the company. Foreign currency risk is managed by the finance department to minimise any potential losses arising from exposure.
A change in exchange rates, in particular, GBP exchange rate, affects the statement of financial position valuation. Sensitivity to exchange rate fluctuations was calculated with the assumption that all foreign currency rates change by ±5 per cent to GBP.
The company had the following currency exposure as at 31st December 2023 and 31st December 2022. Presented below is also the sensitivity of the Company's profit before tax to a 5 per cent increase or decrease of the GBP exchange rate.
2023 | ||||
Currencies | Exposure | Exchange rate | Exposure in GBP | Sensitivity Analysis - income (expenses) of the period |
EUR | 917,417 | 1.15390 | 795,058 | 39,753 |
HUF | (142,826,944) | 441.11160 | (323,789) | (16,189) |
USD | (286,937) | 1.27470 | (225,101) | (11,255) |
CZK | - | 28.49815 | - | - |
PLN | 859 | 5.01170 | 171 | 9 |
TRY | - | 37.64777 | - | - |
Total |
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| 246,339 | 12,317 |
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2022 | ||||
Currencies | Exposure | Exchange rate | Exposure in GBP | Sensitivity Analysis - income (expenses) of the period |
EUR | 775,454 | 1.12770 | 687,642 | 34,382 |
HUF | (142,276,442) | 451.58650 | (315,059) | (15,753) |
USD | (522,953) | 1.20390 | (434,382) | (21,719) |
CZK | - | 27.22530 | - | - |
PLN | 4,013 | 5.28270 | 760 | 38 |
TRY | - | 22.53440 | - | - |
Total |
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| (61,040) | (3,052) |
Credit Risk
Credit risk is defined as the risk of a client or counterparty failing to meet its financial obligations. The Company's only credit risk is with counterparties.
As at 31 December 2023, the Company had company and client bank accounts in 6 banks and institutions (2022: 6 banks and institutions) and moreover in the parent company. The exposures are presented in the table below (enumeration of banks and institutions was set individually for each period):
Exposures by counterparty | Cash & cash equivalents | Cash & cash equivalents |
| 2023 | 2022 |
Institution 1 | 5,387,671 | 5,578,944 |
Institution 2 | 1,244,397 | 561,175 |
Institution 3 | 94,605 | 92,266 |
Institution 4 | 93,445 | 92,096 |
Institution 5 | 533 | 1,498 |
Institution 6 | 171 | 759 |
Institution 7 | - | - |
Institution 8 | - | - |
Institution 9 | - | - |
Exchange differences and | 53,778 | 213,616 |
| 6,874,601 | 6,540,356 |