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Company No: 11371494 (England and Wales)

MAGUS ENERGY LIMITED

Annual Report and Financial Statements
For the financial year ended 31 December 2023

MAGUS ENERGY LIMITED

Annual Report and Financial Statements

For the financial year ended 31 December 2023

Contents

MAGUS ENERGY LIMITED

COMPANY INFORMATION

For the financial year ended 31 December 2023
MAGUS ENERGY LIMITED

COMPANY INFORMATION (continued)

For the financial year ended 31 December 2023
DIRECTORS B S J Cummings
M I Wright
REGISTERED OFFICE The Print Rooms Li 408
164/180 Union Street
London
SE1 0LH
England
United Kingdom
COMPANY NUMBER 11371494 (England and Wales)
AUDITOR FLB Audit LLP
1010 Eskdale Road
Winnersh Triangle
Wokingham
Berkshire
RG41 5TS
MAGUS ENERGY LIMITED

STRATEGIC REPORT

For the financial year ended 31 December 2023
MAGUS ENERGY LIMITED

STRATEGIC REPORT (continued)

For the financial year ended 31 December 2023

Introduction

The principal activity of Magus Energy Limited is in commodity derivatives broking and it is the firm intention of the Directors that the focus of business will remain in this area going forward.

REVIEW OF THE BUSINESS

The Company’s main objectives were met during 2023 as evidence by adherence to its strict compliance procedures and regulatory guidance, providing excellent service to its clients with no complaints. At all times Magus Energy Limited fulfilled its regulatory reporting requirements, remaining above both FCA and NFA minimum net capital levels, whilst maintaining full compliance with objectives set and monitored by its third-party compliance consultants.

KEY PERFORMANCE INDICATORS ('KPIS')

A summary of the key financial performance indicators are below:

Sales: £683,236
Net Profit: £82,759
Total Capital and Reserves: £237,125

A summary of the key non-financial performance indicators:

Employees: 3
Turnover: None
Compliance flags: None
Customer complaints: None

PRINCIPAL RISKS AND UNCERTAINTIES

The primary uncertainty related to our business lies in potential revenue volatility. We are confident in our ability to withstand this given our variable costs, which correlate strongly to revenues.

AT MAGUS ENERGY LIMITED WE WELCOME OUR RESPONSIBILITIES TO PROMOTE THE SUCCESS OF THE COMPANY IN ACCORDANCE WITH SECTION 172 OF THE 2006 COMPANIES ACT.

The Directors of the company ensure that all decisions are taken for the long term, and collectively and individually aims to always uphold the highest standard of conduct. Similarly, the Board acknowledges that the business can only grow and prosper over the long-term if it understands and respects the views and needs of the company’s investors, customers, employees, suppliers and other stakeholders to whom we are accountable, as well as the environment we operate within.

At Magus Energy Limited the Directors fulfil their duties partly through a governance framework that delegates day-to-day decision making to the employees of the company. The Board recognises that such delegation needs to be part of a robust governance structure, which covers our values, how we engage with our stakeholders, and how the Board assures itself that the governance structure and systems of controls continue to be robust.

In considering this, some details on the steps taken in consideration of our key stakeholders:

Customers:

The Firm arranges transactions in commodity instruments for its institutional clients. The Firm’s clients are generally eligible counterparties and per se professionals (although some may be elective professionals). The clients are all institutional are not seeking advice on the appropriateness or suitability of the transactions, as they are being undertaken in the course of their usual business operations.

Magus Energy Limited’s employees do not offer any advice on investments/trades or manage investments or deal on its own account or manufacture any financial instruments.
The Compliance Officer has put in place an up-to-date Product Governance Policy that is reviewed at least annually. Monitoring is undertaken on the nature of clients being onboarded to the Firm to ensure that they meet the definitions determined by the Firm as being its target market. Transactions are monitored on an on-going basis to ensure that the instruments being traded are in line with the instruments that have been assessed as appropriate for the Firm’s target market. Evidence of monitoring is made available to the Management Body or regulators on a quarterly basis.

The Firm is required to adhere to the sections of the Conduct of Business Sourcebook (COBS) relevant to its business model. At the heart of COBS is that firms must always act in the ‘Client’s Best Interests’. COBS sets out the standards expected of firms throughout ‘a client journey’ because it deals with the entire relationship from start to finish. From promoting services to the end of the relationship, COBS sets out how firms are expected to behave on each step of the client journey.

This Conduct manual, and the High Level manual that accompanies it, outlines the minimum standards of conduct that are acceptable from all members of staff representing the Firm, which is authorised and regulated by the Financial Conduct Authority.

Our conflicts of interest policy details how Magus Energy Limited identifies, prevents and manages conflicts of interest in respect of its business activities. The Firm is authorised by the Financial Conduct Authority (FCA) and, as such, acts in accordance to the Conflicts of Interest rules as defined in the FCA Handbook, which will take precedence over the requirements of this policy.

Regulators:

The firm is required under the FCA and NFA rules to monitor its activities in order to ensure it remains in compliance with all relevant rules and regulations and to identify areas of weakness. This compliance monitoring programme (“CMP”) is one of the means by which the firm meets that requirement. Monitoring is performed on a regular basis and the results are submitted to the firm’s governing body for review. Prompt action must be taken to correct any deficiencies or breaches identified.

Employees:

We maintain a clear and appropriate apportionment of significant responsibilities among the directors and senior managers. We confirm organisational charts are up to date and correct, maintain job Description’s for management body clear on responsibilities and have broad terms of reference to evidence apportionment of responsibility and ensure that all delegated functions are handled to the relevant standard.
Our Remuneration Policy details how Magus Energy Limited manages remuneration in line with its business strategy and ensure a consistency of approach within the firm to attract, retain and reward employee’s for contributing to the Firm’s success, whilst maintaining financial stability and robust and effective risk management.
Our Recruitment Procedure details how Magus Energy Limited follows an employee journey from creating the role opportunity through to the chosen candidate being ready to arrive at the Firm for their first day at work.

Suppliers:

Our Outsourcing Policy details how we manage the risks posed by outsourcing and ensure a consistency of approach within the Firm.
Outsourcing is an arrangement between a Firm and a service provider who is performing a service, process or activity which the Firm would otherwise be expected to undertake themselves. This policy aims to consider the impact of outsourcing on the Firm and the reporting and monitoring arrangements to be implemented. The Firm is authorised by the Financial Conduct Authority (FCA) and, as such, will act in accordance to SYSC 8 rules as defined in the FCA Handbook, which will take precedence over the requirements of this policy.

Community and Environment:

The Board supports the Company’s goals and initiatives with regard to reducing adverse impacts on the environment and supporting the communities that it touches. The Board intends to give further consideration in 2024 to the Company’s approach to climate change and further measures we can take to contribute to the reduction of our impact on the environment.

ALL stakeholders:

At Magus Energy Limited we recognise the risks around financial crime and as such employ third party compliance consultants to assist in our monitoring and refreshing of all policies to reduce those risks. The Firm has carried out a financial crime risk assessment and established systems and controls that identify, assess, monitor and manage fraud, bribery and corruption and money laundering risk. The risk assessment, systems and controls are reviewed, at least annually, in conjunction with changes to the business and the management information provided to the Management Body. The financial crime risk assessment covers risk at the business, client and geographical level and is both qualitative and quantitative.

Our Anti-money laundering procedures manage the risks posed by money laundering and ensure a consistency of approach within the Firm to comply with the anti-money laundering rules as defined in the FCA Handbook. The Firm’s has a zero tolerance for money laundering and is committed to mitigating the risks of money laundering. The firm takes the necessary preventative actions and will promptly investigate any suspicion of money laundering occurring.

We have a Data Protection and Data Security Policy details how we manage data protection and data security and ensure a consistency of approach within the Firm and adherence to the Data Protection Regulation. The Firm recognises that failure to protect personal data poses a risk to employees and clients and to the reputation and good standing of the company, as well as risking financial penalties.

We have in place a robust Business Continuity Plan that provides a flexible response so that the Firm could respond to any disruptive incidents (incident management), maintain delivery of critical activities/services during an incident (business continuity) and return to ‘business as usual’ (resumption and recovery) quickly and effectively.

Approved by the Board of Directors and signed on its behalf by:

M I Wright
Director

27 March 2024

MAGUS ENERGY LIMITED

DIRECTORS' REPORT

For the financial year ended 31 December 2023
MAGUS ENERGY LIMITED

DIRECTORS' REPORT (continued)

For the financial year ended 31 December 2023

The directors present their annual report on the affairs of the Company, together with the financial statements and auditors’ report, for the financial year ended 31 December 2023.

PRINCIPAL ACTIVITIES

The principal activity of the Company is to provide brokerage services. The Company is authorised and regulated by the Financial Conduct Authority (FCA) and is a member of the National Futures Association (‘NFA’) in the capacity of an Introducing Broker.

REVIEW OF THE BUSINESS

Turnover for the financial year amounted to £683,236 (2022: £425,492). The Company earned a profit after taxation totalling £82,759 (2022: loss £11,055).

The net current asset position of the Company as at the financial year end amounted to £236,060 (2022: net current asset £152,983).

The net asset position of the Company as at the financial year end amounted to £237,125 (2022: net asset £154,366).

DIVIDENDS

There were no dividends declared for the period

FUTURE DEVELOPMENTS

The Company expects to continue to grow and expand in the future.

DIRECTORS

The directors, who served during the financial year and to the date of this report except as noted, were as follows:

B S J Cummings
M I Wright

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and

* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.


FLB Audit LLP have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.



Approved by the Board of Directors and signed on its behalf by:

M I Wright
Director

27 March 2024

MAGUS ENERGY LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

For the financial year ended 31 December 2023
MAGUS ENERGY LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT (continued)

For the financial year ended 31 December 2023

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that financial period.

In preparing these financial statements, the directors are required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. The directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAGUS ENERGY LIMITED

For the financial year ended 31 December 2023

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAGUS ENERGY LIMITED (continued)

For the financial year ended 31 December 2023

Opinion

We have audited the financial statements of Magus Energy Limited for the financial year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows, the accounting policies, and the related notes 1 to 17, 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 of Magus Energy Limited (the ‘Company’):
* Give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)). Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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, 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 audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:
* The information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
* The Directors’ Report has been prepared in accordance with applicable legal requirements.

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 Directors’ Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
* 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;
* The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/descriptionof-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We have gained an understating of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures at company levels to respond to the risk, recognising that risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 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, taxation legislation, financial authority regulation, data protection, anti-bribery and health and safety legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included inquiries of management their own identification and assessment of the risks of irregularities, risk-based sample testing on the posting of journals, reviewing accounting estimates for biases, and reviewing legal expense accounts for spend which may be indicative of breaches of law & regulations.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

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.

Daniel Faust
For and on behalf of
FLB Audit LLP
Statutory Auditor

1010 Eskdale Road
Winnersh Triangle
Wokingham
Berkshire
RG41 5TS

27 March 2024

MAGUS ENERGY LIMITED

STATEMENT OF COMPREHENSIVE INCOME

For the financial year ended 31 December 2023
MAGUS ENERGY LIMITED

STATEMENT OF COMPREHENSIVE INCOME (continued)

For the financial year ended 31 December 2023
Note 2023 2022
£ £
Turnover 3 683,236 425,492
Administrative expenses ( 590,514) ( 436,547)
Operating profit/(loss) and profit/(loss) before taxation 4 92,722 ( 11,055)
Tax on profit/(loss) 8 ( 9,963) 0
Profit/(loss) for the financial year 82,759 ( 11,055)
Other comprehensive income 0 0
Total comprehensive income/(loss) 82,759 ( 11,055)
MAGUS ENERGY LIMITED

STATEMENT OF FINANCIAL POSITION

As at 31 December 2023
MAGUS ENERGY LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

As at 31 December 2023
Note 2023 2022
£ £
Fixed assets
Tangible assets 9 1,065 1,383
1,065 1,383
Current assets
Debtors 10 76,709 73,887
Cash at bank and in hand 11 268,687 112,509
345,396 186,396
Creditors: amounts falling due within one year 12 ( 109,336) ( 33,413)
Net current assets 236,060 152,983
Total assets less current liabilities 237,125 154,366
Net assets 237,125 154,366
Capital and reserves 13
Called-up share capital 212,500 212,500
Profit and loss account 24,625 ( 58,134)
Total shareholder's funds 237,125 154,366

The financial statements of Magus Energy Limited (registered number: 11371494) were approved and authorised for issue by the Board of Directors. They were signed on its behalf by:

M I Wright
Director

27 March 2024

MAGUS ENERGY LIMITED

STATEMENT OF CHANGES IN EQUITY

For the financial year ended 31 December 2023
MAGUS ENERGY LIMITED

STATEMENT OF CHANGES IN EQUITY (continued)

For the financial year ended 31 December 2023
Called-up share capital Profit and loss account Total
£ £ £
At 01 January 2022 212,500 ( 47,079) 165,421
Loss for the financial year 0 ( 11,055) ( 11,055)
Total comprehensive loss 0 ( 11,055) ( 11,055)
At 31 December 2022 212,500 ( 58,134) 154,366
At 01 January 2023 212,500 ( 58,134) 154,366
Profit for the financial year 0 82,759 82,759
Total comprehensive income 0 82,759 82,759
At 31 December 2023 212,500 24,625 237,125
MAGUS ENERGY LIMITED

STATEMENT OF CASH FLOWS

For the financial year ended 31 December 2023
MAGUS ENERGY LIMITED

STATEMENT OF CASH FLOWS (continued)

For the financial year ended 31 December 2023
2023 2022
£ £
Net cash flows from operating activities (note 15) 156,178 ( 34,998)
Cash flows from investing activities
Net cash flows from investing activities 0 0
Cash flows from financing activities
Net cash flows from financing activities 0 0
Net increase/(decrease) in cash and cash equivalents 156,178 ( 34,998)
Cash and cash equivalents at beginning of year 112,509 148,959
Effect of foreign exchange rate changes 0 ( 1,452)
Cash and cash equivalents at end of year 268,687 112,509
Reconciliation to cash at bank and in hand:
Cash at bank and in hand at end of year 268,687 112,509
Cash and cash equivalents at end of year 268,687 112,509
MAGUS ENERGY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2023
MAGUS ENERGY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2023
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Magus Energy Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is The Print Rooms Li 408, 164/180 Union Street, London, SE1 0LH, England, United Kingdom.

The principal activities are set out in the Strategic Report.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Comprehensive Income in the period in which they arise except for:
* exchange differences on transactions entered into to hedge certain foreign currency risks (see above); and
* exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙ the amount of revenue can be measured reliably;
∙ it is probable that the Company will receive the consideration due under the contract;
∙ the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙ the costs incurred and the costs to complete the contract can be measured reliably.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

Defined contribution schemes
For defined contribution schemes the amounts charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits are the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are shown as either accruals or prepayments in the Statement of Financial Position.

Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Statement of Financial Position date. Timing differences are differences between the Company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment is measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to the sale of the asset.

Where items recognised in the Statement of 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.

Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset only if: a) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the Company and the Company intends either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Fixtures and fittings 15 % reducing balance
Computer equipment 4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

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 creditors: amounts falling due within one year.

Financial instruments

The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans to related parties.

Financial assets
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of Income and Retained Earnings/Statement of Comprehensive Income.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade, other creditors and accruals, 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 receipts discounted at a market rate of interest.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Financial assets and liabilities are offset and 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.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.

The directors do not consider that any critical judgements have been made in the application of the Company's accounting policies and no key sources of estimation uncertainty have been identified that have a significant risk of causing a material misstatement to the carrying amount of assets and liabilities within the financial year.

Critical judgements in applying the Company’s accounting policies

3. Turnover

Turnover is wholly attributable to the principal activity of the Company and arises solely within the United Kingdom.

4. Operating profit/(loss) and profit/(loss) before taxation

Operating profit/(loss) and profit/(loss) before taxation is stated after charging/(crediting):

2023 2022
£ £
Depreciation of tangible fixed assets (note 9) 318 0
Foreign exchange (gains)/losses ( 4,551) 60

5. Auditor's remuneration

An analysis of the auditor's remuneration is as follows:

2023 2022
£ £
Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements: 12,480 11,400
Total audit fees 12,480 11,400

6. Staff number and costs

2023 2022
Number Number
The average monthly number of employees (including directors) was: 3 2

Their aggregate remuneration comprised:

2023 2022
£ £
Wages and salaries 455,487 329,500
Social security costs 54,605 39,947
Other retirement benefit costs 3,570 2,642
513,662 372,089

7. Directors' remuneration

2023 2022
£ £
Directors' emoluments 104,947 114,000
Company contributions to money purchase pension schemes 1,312 1,321
106,259 115,321
2023 2022
Number Number
Members of a defined benefit pension scheme 1 1

8. Tax on profit/(loss)

2023 2022
£ £
Current tax on profit/(loss)
UK corporation tax 9,963 0
Total current tax 9,963 0
Total tax on profit/(loss) 9,963 0

9. Tangible assets

Fixtures and fittings Computer equipment Total
£ £ £
Cost
At 01 January 2023 888 3,034 3,922
At 31 December 2023 888 3,034 3,922
Accumulated depreciation
At 01 January 2023 78 2,461 2,539
Charge for the financial year 121 197 318
At 31 December 2023 199 2,658 2,857
Net book value
At 31 December 2023 689 376 1,065
At 31 December 2022 810 573 1,383

10. Debtors

2023 2022
£ £
Trade debtors 66,921 60,616
Other debtors 8,048 9,065
Prepayments 1,740 4,206
76,709 73,887

11. Cash and cash equivalents

2023 2022
£ £
Cash at bank and in hand 268,687 112,509

12. Creditors: amounts falling due within one year

2023 2022
£ £
Directors loans (note 16) 15,000 15,000
Trade creditors 0 2,555
Taxation and social security 9,963 0
Accruals 83,561 15,271
Other creditors 812 587
109,336 33,413

13. Called-up share capital and reserves

2023 2022
£ £
Allotted, called-up and fully-paid
212,500 Ordinary shares of £ 1.00 each 212,500 212,500
Presented as follows:
Called-up share capital presented as equity 212,500 212,500

The Company's other reserves are as follows:

The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

14. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

2023 2022
£ £
within one year 13,414 31,554
between one and five years 0 13,414
13,414 44,968

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

15. Statement of Cash Flows

2023 2022
£ £
Operating profit/(loss) 92,722 ( 11,055)
Adjustment for:
Depreciation and amortisation 318 503
Operating cash flows before movement in working capital 93,040 ( 10,552)
Increase in debtors ( 2,822) ( 43,155)
Increase in creditors 65,960 18,709
Cash generated by operations 156,178 ( 34,998)
Net cash flows from operating activities 156,178 ( 34,998)

16. Related party transactions

Included within trade debtors is a balance of £66,921 (2022 - £60,618) due from a company of which one of the directors is a member.

Included within other creditors is a balance of £15,000 (2022 - £15,000) owed to a director.

17. Events after the Balance Sheet date

There have been no events after the balance sheet date affecting the Company since the financial year.