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Registered number: 10178413









MAC ASSET MANAGEMENT LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

 
MAC ASSET MANAGEMENT LIMITED
 
 
COMPANY INFORMATION


Director
J Da Teresa 




Registered number
10178413



Registered office
1st Floor
34 South Molton Street

Mayfair

London

W1K 5RG




Independent auditors
BKL Audit LLP
Statutory Auditors & Chartered Accountants

35 Ballards Lane

London

N3 1XW





 
MAC ASSET MANAGEMENT LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 3
Director's Report
 
 
4 - 5
Independent Auditors' Report
 
 
6 - 9
Statement of Comprehensive Income
 
 
10
Statement of Financial Position
 
 
11
Statement of Changes in Equity
 
 
12
Statement of Cash Flows
 
 
13
Notes to the Financial Statements
 
 
14 - 23

 
MAC ASSET MANAGEMENT LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

Introduction
 
The director presents the strategic report for MAC Asset Management Limited ("the Company") for the year ending 30 June 2023. 
The principal activity of the Company is Investment Management. The Company is authorised and regulated by the Financial Conduct Authority (FCA).
Details of the Company’s regulatory disclosures as required under MIFIDPRU8 are available on the Company's website. These disclosures are unaudited.

Business review
 
As reported in the Statement of Comprehensive Income, the Company generated trading revenues of £260k and made an operating profit of £4k for the year.
During the year, the £85,000 capital contribution reserve was converted to share capital via the issue of 85,000 ordinary £1 share at par. 
On 4 January 2021, the Company created and launched a Fixed Income UCITS Luxembourg-based fund. The fund started with approximately €4m AUM and gradually increased to approximately €6.75m AUM by 30 June 2023. The Company continues the effort to increase the fund's AUM and generate revenue from the UCITS Fund through management fees, performance fees and subscription fees.
2023 has been a challenging financial year due to the changes in the business environment and the market conditions. Two clients were lost, and no new clients were onboarded during the year. This results in a decrease in management fees however the costs were also significantly reduced to ensure that the company is still profitable.
The results for the year and the financial position at the year-end were considered satisfactory by the directors taking into account the time to process additional requirements from the regulator and exploring new leads as clients. 

Future developments 
The Company is working to expand the number of clients for discretionary mandates.
The Company continues to raise the fund's AUM and improve performance across all investment solutions offered to investors.
The Company is also further developing its trade execution service for institutional clients.

Principal risks and uncertainties
 
Management continually monitors the Company's key risks and assesses the controls used to manage these risks. The board of directors formally reviews and documents the principal risks the business face on an ongoing basis via maintaining a Risk Register.
The revenues are related to the services provided but also to the value of the assets under management. A fall in assets under management could arise from a variety of factors including wider economic conditions, poor performance of the investments or changes to investor risk appetite. A decline in assets under management would result in a reduction in revenues.
The Company's main risk is the concentration risk related to concentration of AUMs in a few clients. In order to mitigate this risk as much as possible, the Company is actively looking for new clients. Also, the launch of our
Page 1

 
MAC ASSET MANAGEMENT LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

UCITS Fund helped us to drastically diversify the investment solutions offered and sources of revenues, decreasing this risk.
From an operational perspective, the key risk relates to the potential of non-compliance with the rules issued by the Financial Conduct Authority that could lead to fines or a ban on trading activity. This is managed by regular review of the compliance framework by Senior Management, and training provided to our employees.

Financial key performance indicators
 
Management use performance measures to monitor and manage the business.
Given the nature and size of the Company, only certain KPIs are relevant for understanding the development, performance and position of the business.
The principal indicators are as follows:
Turnover: £260k
Operating profit: £4k
Debt to Asset Ratio:0.06
The director considers the Company to be well financed at the end of the year.
The directors consider that the AUM and the number of clients with discretionary mandates to be significant non-financial performance indicators.

Director's statement of compliance with duty to promote the success of the Company
 
The director of the Company is acutely aware of the requirement to act in a way that is most likely to promote the success of the Company for the benefit of its members as a whole. In considering this duty the director considers the following stakeholders:
Shareholders
The CEO, who is also a shareholder, is in regular contact with all shareholders and director to ensures that the business strategy of the company is completely aligned with the strategic objectives of the shareholders.
Employees
Director and staff meet on a regular basis and interact freely with each other. The company also provides internal communications when needed and flexibility on working hours and holidays. The management offers trainings to staff when required to improve their skills and experience.
Customers and Partners
The company has a varied customer base and partners including institutional banks, high net worth individuals and corporates. The company has always been a customer needs led organisation and treating customers fairly is ingrained in the organisation. The behaviour of employees towards customers is governed by the company policies and the FCA’s requirements.
Suppliers
The company does have significant costs attributed to various financial data vendors, which allows the company to operate and continue trading. The director is aware that the company is open to risk in the event that these suppliers were to fail however the company have taken the necessary steps to limit this risk.

Page 2

 
MAC ASSET MANAGEMENT LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023


This report was approved by the board and signed on its behalf.







J Da Teresa
Director

Date: 20 October 2023
Page 3

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The director presents his report and the financial statements for the year ended 30 June 2023.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


select suitable accounting policies for the Company's financial statements 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;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 to enable him to ensure that the financial statements comply with the Companies Act 2006He 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.

Principal activity

The Company's principal activity is the provision of financial advisory services. The Company is regulated by the Financial Conduct Authority (FCA).

Director

The director who served during the year was:

J Da Teresa 

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company's auditors are unaware, and

has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 4

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Auditors

The auditorsBKL Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 







J Da Teresa
Director

Date: 20 October 2023
Page 5

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAC ASSET MANAGEMENT LIMITED
 

Opinion


We have audited the financial statements of MAC Asset Management Limited (the 'Company') for the year ended 30 June 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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.


Page 6

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAC ASSET MANAGEMENT LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion 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 Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have 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 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:


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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 4, 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 have no realistic alternative but to do so.


Page 7

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAC ASSET MANAGEMENT LIMITED (CONTINUED)


Auditors' 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 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Enquiring of management and those charged with governance around actual and potential litigation and claims;
Enquiring of entity staff in finance and compliance functions to identify any instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing account estimates for bias.


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.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.
Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Page 8

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAC ASSET MANAGEMENT LIMITED (CONTINUED)


Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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 2006Our 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, as a body, for our audit work, for this report, or for the opinions we have formed.







Michael Wedge FCA (Senior Statutory Auditor)
  
for and on behalf of
BKL Audit LLP
 
Statutory Auditors
Chartered Accountants
  
London

20 October 2023
Page 9

 
MAC ASSET MANAGEMENT LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
259,547
447,870

Cost of sales
  
(65,450)
(163,356)

Gross profit
  
194,097
284,514

Administrative expenses
  
(189,967)
(292,855)

Operating profit/(loss)
 5 
4,130
(8,341)

Interest receivable and similar income
  
490
28

Profit/(loss) before tax
  
4,620
(8,313)

Tax on profit/(loss)
 9 
(546)
-

Profit/(loss) for the financial year
  
4,074
(8,313)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 23 form part of these financial statements.

Page 10

 
MAC ASSET MANAGEMENT LIMITED
REGISTERED NUMBER: 10178413

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
261
1,842

  
261
1,842

Current assets
  

Debtors: amounts falling due within one year
 11 
14,965
34,242

Cash at bank and in hand
  
241,323
224,409

  
256,288
258,651

Creditors: amounts falling due within one year
 12 
(16,016)
(24,034)

Net current assets
  
 
 
240,272
 
 
234,617

Total assets less current liabilities
  
240,533
236,459

  

Net assets
  
240,533
236,459


Capital and reserves
  

Called up share capital 
 13 
145,000
60,000

Capital contribution reserve
 14 
-
85,000

Profit and loss account
 14 
95,533
91,459

  
240,533
236,459


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 






J Da Teresa
Director

Date: 20 October 2023


The notes on pages 14 to 23 form part of these financial statements.
Page 11

 
MAC ASSET MANAGEMENT LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Capital contribution reserve
Profit and loss account
Total equity

£
£
£
£


At 1 July 2021
60,000
-
99,772
159,772


Comprehensive income for the year

Loss for the year
-
-
(8,313)
(8,313)

Capital contributed
-
85,000
-
85,000



At 1 July 2022 (as previously stated)
60,000
85,000
94,786
239,786

Prior year adjustment - correction of error
-
-
(3,327)
(3,327)


At 1 July 2022 (as restated)
60,000
85,000
91,459
236,459


Comprehensive income for the year

Profit for the year
-
-
4,074
4,074

Shares issued during the year
85,000
-
-
85,000

Conversion of capital contribution to share capital
-
(85,000)
-
(85,000)


At 30 June 2023
145,000
-
95,533
240,533


The notes on pages 14 to 23 form part of these financial statements.
Page 12

 
MAC ASSET MANAGEMENT LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

As restated
2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
4,074
(8,313)

Adjustments for:

Depreciation of tangible assets
1,581
3,588

Interest received
(490)
(28)

Taxation charge
546
-

Decrease in debtors
19,329
9,224

(Decrease)/increase in creditors
(8,020)
10,959

Corporation tax (paid)
(595)
(1,459)

Net cash generated from operating activities

16,425
13,971


Cash flows from investing activities

Purchase of intangible fixed assets
-
(1,379)

Interest received
490
28

Net cash from investing activities

490
(1,351)

Cash flows from financing activities

Capital contributed
-
85,000

Net cash used in financing activities
-
85,000

Net increase in cash and cash equivalents
16,915
97,620

Cash and cash equivalents at beginning of year
224,409
126,789

Cash and cash equivalents at the end of year
241,324
224,409


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
241,324
224,409


The notes on pages 14 to 23 form part of these financial statements.

Page 13

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

The principal activity of MAC Asset Management Limited is the provision of financial advisory services.
The Company is a private company limited by shares and is incorporated in England and Wales.
The principal place of business is 1st Floor 34 South Molton Street, Mayfair, London, England, W1K 5RG. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ("FRS 102") and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.
Although the Company have made a profit, the directors have considered future prospects and guarantee that the company can continue to pay its liabilities for at least the next 12 months from the date of approval of these financial statements. On the basis of their assessment of the Company’s financial position and resources, the director believes that the Company is well placed to manage its business risks. 

Page 14

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

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.
Revenue in respect of financial advisory services is recognised over the period the service has been provided. 
Revenue from trading is recognised by the Company on settlement dates and earned on a mark-to-market basis.

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

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MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.6

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Computer equipment
-
33%
Straight Line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
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MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.9

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. 
(i) 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 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.
(ii) Financial liabilities
Basic financial liabilities, including trade and 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.
 
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MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)


2.9
Financial instruments (continued)

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements required management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial postition date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are no material judgements or accounting estimates in the year.


4.


Turnover

All turnover is attributable to the Company's principal activity and all arose within the United Kingdom. 


5.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
1,581
3,588

Exchange differences
2,385
3,372

Other operating lease rentals
-
28,400

Defined contribution pension costs
1,470
3,809

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MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's annual financial statements
7,165
6,825

Fees payable to the Company's auditors and their associates in respect of:

Audit-related assurance services
6,245
5,950

Other services relating to taxation
780
745

All other services
2,645
2,520

7.


Employees

Staff costs, including director's remuneration, were as follows:


2023
2022
£
£

Wages and salaries
96,000
158,795

Social security costs
6,908
17,212

Cost of defined contribution scheme
1,470
3,809


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Average number of employees
2
3


8.


Director's remuneration

2023
2022
£
£

Director's emoluments
49,000
100,500

Company contributions to defined contribution pension schemes
1,470
3,015

50,470
103,515


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £49,000 (2022 - £100,500).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,470 (2022 - £3,015).

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MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
546
-


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
4,620
(8,313)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
878
(1,579)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
25
1,055

Capital allowances for year in excess of depreciation
300
420

Utilisation of tax losses
(535)
-

Adjustments to tax charge in respect of prior periods
-
632

Short term timing difference leading to an increase (decrease) in taxation
(122)
(528)

Total tax charge for the year
546
-


Factors that may affect future tax charges

The UK Government announced its intention to increase the rate of UK corporation tax from 19% to 25% with effect from 1 April 2023. The increase in the rate of UK corporation tax was substantively enacted on 10 June 2021.

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MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

10.


Tangible fixed assets





Computer equipment

£



Cost 


At 1 July 2022
11,510



At 30 June 2023

11,510



Depreciation


At 1 July 2022
9,668


Charge for the year on owned assets
1,581



At 30 June 2023

11,249



Net book value



At 30 June 2023
261



At 30 June 2022
1,842


11.


Debtors

As restated
2023
2022
£
£


Trade debtors
-
21

Other debtors
3,347
18,397

Prepayments and accrued income
11,618
15,824

14,965
34,242


Page 21

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

12.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
205
10,799

Other taxation and social security
1,484
-

Other creditors
827
2,000

Accruals and deferred income
13,500
11,235

16,016
24,034



13.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



145,000 (2022 - 60,000) Ordinary A shares of £1.00 each
145,000
60,000


During the year, the £85,000 capital contribution reserve was converted to share capital via the issue of 85,000 ordinary £1 shares at par.


14.


Reserves

Capital contibution reserve

The capital contribution reserve comprises of shareholders loans' with repayment terms at the discretion of the company.


15.


Prior year adjustment

The comparative information in these financial statements has been restated from the figures previously reported in the prior year financial statements to reflect the correction of prepayments along with the subsequent expenses charged to the Statement of Comprehensive Income.
This correction has resulted in a decrease in debtors of £3,327 and a decrease in the reported loss as at 30 June 2022 of £3,327.
The impact of the above adjustment has resulted in a decrease in net assets and retained earnings as previously reported of £3,327.


16.


Pension commitment

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totalling £827 (2022 - £1,473) were payable to the fund at the reporting date and are included in creditors.

Page 22

 
MAC ASSET MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

17.


Related party transactions

The following transactions and outstanding balances with related parties are included within these financial statements: 


Other Creditors 2023
Other Creditors 2022
30 June 2023 Revenue
30 June 2022 Revenue
£
£
£
£

Fees receivable from entities under common control
-
-
-
61,520
Fees receivable from a shareholder
-
-
-
30,952
Amounts due to a director included in other creditors
-
527
-
-
Capital contribution
-
85,000
-
-
-
85,527
-
92,472

The Company manages an investment fund for an entity under common control and where no management fees were receivable for the current year.


18.


Controlling party

The controlling party is G A Casale.

 
Page 23