Company registration number 09317056 (England and Wales)
TRAMONTANA ASSET MANAGEMENT LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
TRAMONTANA ASSET MANAGEMENT LTD
COMPANY INFORMATION
Directors
B Manium
P Jackman
Company number
09317056
Registered office
31-33 High Holborn
London
WC1V 6AX
Auditor
Simpson Wreford LLP
Wellesley House
Duke of Wellington Avenue
Royal Arsenal
London
SE18 6SS
Business address
One Canada Square
Canary Wharf
London
E14 5AA
TRAMONTANA ASSET MANAGEMENT LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor report
5 - 7
Profit and loss account
8
Balance sheet
9
Notes to the financial statements
12 - 17
TRAMONTANA ASSET MANAGEMENT LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -
Introduction
Tramontana Asset Management is a private limited company registered in England and Wales with offices in Canary Wharf, London.
We are an investment management company specialising in Energy Transition Finance and the Voluntary Carbon Markets. Our innovative approach to overcoming some of the challenges faced by clients in the sector has gained wide recognition across the Energy Transition and sustainable finance industry.
We believe that a successful transition towards a low-carbon economy requires the full support of global capital markets. The firm brings together innovation and new capital to help achieve optimal financing and hedging outcomes for clients.
Tramontana is also a developer and financier of high-integrity greenhouse gas emissions reduction projects. Our projects contribute directly to achieving Net Zero and meet multiple UN Sustainable Development Goals.
The directors present the strategic report for the year ended 30 November 2023.
Review of the business
For the year ending 30th November 2023, we achieved significant revenue growth, increasing by 18% from £13,745,488 in 2022 to £16,286,901. The primary driver of this growth was the successful expansion of our established Energy Transition Finance business. During the year, the firm made significant investments to execute its Strategic Plan and expand into the Voluntary Carbon Market including conducting research, hiring staff and developing projects. The firm performed strongly and delivered a net profit of £6,046,103 for the year ending 30th November 2023 (2022: £8,712,419).
Principal risks and uncertainties
The firm proactively reviews and addresses key risks on an ongoing basis to ensure the continued success of our business. These risks include:
Business risk
The firm employs technology to automate daily tasks and lifecycle events to reduce operational risk. We regularly monitor the legal and compliance landscape to ensure that we adapt quickly to changes in law and regulations.
Liquidity risk
The firm is required to maintain a Basic Liquid Asset Requirement (BLAR) under FCA rules. The firm adopts a conservative approach to liquidity and chooses to hold a significant buffer over and above the BLAR.
Foreign currency risk
The firm’s revenues are predominantly in EUR and USD and most of its expenses are in GBP. This FX risk is managed by periodic FX hedging transactions.
Key performance indicators
As the firm is in the growth phase and continues expand and invest the key financial indicator that we use to monitor performance is revenue, which was up 18% in the year ending 30th November 2023. In terms of non-financial indicators, innovation is critical, and in the year ending 30th November 2023 we successfully developed new products which were able to solve specific issue for our clients. The firm also executed on its Strategic Plan which involved significant investment into research, hiring staff and project development to become an end-to-end developer of high-integrity greenhouse gas emissions reduction projects.
Future developments
The firm is committed to continuing to broaden and deepen its Energy Transition Financing business. In addition, we continue to focus on our Strategic Plan and are pursuing several new and exciting opportunities to develop high-integrity greenhouse gas emissions reduction projects that will provide a tangible pathway towards Net Zero.
TRAMONTANA ASSET MANAGEMENT LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
B Manium
Director
26 March 2024
TRAMONTANA ASSET MANAGEMENT LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 November 2023.
Principal activities
The principal activity of the company is in Energy Transition Financing and development of high-integrity greenhouse gas reduction projects.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
B Manium
P Jackman
Auditor
In accordance with the company's articles, a resolution proposing that Simpson Wreford LLP be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
B Manium
Director
26 March 2024
TRAMONTANA ASSET MANAGEMENT LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
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). 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 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;
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. They 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.
TRAMONTANA ASSET MANAGEMENT LTD
INDEPENDENT AUDITOR REPORT
TO THE MEMBERS OF TRAMONTANA ASSET MANAGEMENT LTD
- 5 -
Opinion
We have audited the financial statements of Tramontana Asset Management Ltd (the 'company') for the year ended 30 November 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 November 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
TRAMONTANA ASSET MANAGEMENT LTD
INDEPENDENT AUDITOR REPORT (CONTINUED)
TO THE MEMBERS OF TRAMONTANA ASSET MANAGEMENT LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
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.
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 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 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, data protection and FCA regulation;
TRAMONTANA ASSET MANAGEMENT LTD
INDEPENDENT AUDITOR REPORT (CONTINUED)
TO THE MEMBERS OF TRAMONTANA ASSET MANAGEMENT LTD
- 7 -
Audit response to risks identified
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with FCA.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor 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 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.
Kate Taylor FCA
Senior Statutory Auditor
For and on behalf of Simpson Wreford LLP
26 March 2024
Chartered Accountants
Statutory Auditor
Wellesley House
Duke of Wellington Avenue
Royal Arsenal
London
SE18 6SS
TRAMONTANA ASSET MANAGEMENT LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
£
£
Turnover
16,286,901
13,745,488
Administrative expenses
(9,717,118)
(3,057,491)
Operating profit
6,569,783
10,687,997
Interest receivable and similar income
96,789
Interest payable and similar expenses
(179)
(4,408)
Profit before taxation
6,666,393
10,683,589
Tax on profit
(620,290)
(1,971,170)
Profit for the financial year
6,046,103
8,712,419
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TRAMONTANA ASSET MANAGEMENT LTD
BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
348,235
176,268
Current assets
Debtors
5
2,107,594
915,557
Cash at bank and in hand
26,534,163
21,259,340
28,641,757
22,174,897
Creditors: amounts falling due within one year
6
(15,933,512)
(13,340,788)
Net current assets
12,708,245
8,834,109
Net assets
13,056,480
9,010,377
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
13,056,479
9,010,376
Total equity
13,056,480
9,010,377
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 26 March 2024 and are signed on its behalf by:
B Manium
Director
Company registration number 09317056 (England and Wales)
TRAMONTANA ASSET MANAGEMENT LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
1
4,297,957
4,297,958
Year ended 30 November 2022:
Profit and total comprehensive income
-
8,712,419
8,712,419
Dividends
-
(4,000,000)
(4,000,000)
Balance at 30 November 2022
1
9,010,376
9,010,377
Year ended 30 November 2023:
Profit and total comprehensive income
-
6,046,103
6,046,103
Dividends
-
(2,000,000)
(2,000,000)
Balance at 30 November 2023
1
13,056,479
13,056,480
TRAMONTANA ASSET MANAGEMENT LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
9
9,206,802
17,863,476
Interest paid
(179)
(4,408)
Income taxes paid
(1,829,831)
(3,319,358)
Net cash inflow from operating activities
7,376,792
14,539,710
Investing activities
Proceeds from disposal of intangibles
5,204
Purchase of tangible fixed assets
(248,078)
(182,254)
Proceeds from disposal of tangible fixed assets
15,611
Interest received
96,789
Net cash used in investing activities
(151,289)
(161,439)
Financing activities
Payment of finance leases obligations
49,320
Dividends paid
(2,000,000)
(4,000,000)
Net cash used in financing activities
(1,950,680)
(4,000,000)
Net increase in cash and cash equivalents
5,274,823
10,378,271
Cash and cash equivalents at beginning of year
21,259,340
10,881,069
Cash and cash equivalents at end of year
26,534,163
21,259,340
TRAMONTANA ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
1
Accounting policies
Company information
Tramontana Asset Management Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 31-33 High Holborn, London, WC1V 6AX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by using a five step approach:
i) Identify the contract, ii) identify the performance obligations included in the contract, iii) determine the amount of consideration in the contract, iv) allocate the consideration to each of the identified performance obligations, v) recognise the revenue as each performance obligation is satisfied.
Where amounts are received in advance for future services, those amounts are included within deferred income shown in creditors due within one year.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line basis
Plant and machinery
25% reducing balance basis
Fixtures, fittings & equipment
25% reducing balance basis
Computer equipment
33.33 straight line basis
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.
TRAMONTANA ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
TRAMONTANA ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
TRAMONTANA ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
11
10
TRAMONTANA ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
4
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 December 2022
105,599
987
115,991
55,696
278,273
Additions
85,759
103,153
59,166
248,078
At 30 November 2023
191,358
987
219,144
114,862
526,351
Depreciation and impairment
At 1 December 2022
30,744
247
38,007
33,007
102,005
Depreciation charged in the year
26,837
185
27,297
21,792
76,111
At 30 November 2023
57,581
432
65,304
54,799
178,116
Carrying amount
At 30 November 2023
133,777
555
153,840
60,063
348,235
At 30 November 2022
74,855
740
77,984
22,689
176,268
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
15,108
15,108
Other debtors
2,092,486
900,449
2,107,594
915,557
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
50,308
145,415
Taxation and social security
80,172
30,940
Other creditors
15,803,032
13,164,433
15,933,512
13,340,788
7
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
500,000,000 Ordinary shares of £0.000000001 each
1
1
TRAMONTANA ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
406,538
266,607
9
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
6,046,103
8,712,419
Adjustments for:
Taxation charged
620,290
1,971,170
Finance costs
179
4,408
Investment income
(96,789)
Gain on disposal of intangible assets
-
(5,204)
Depreciation and impairment of tangible fixed assets
76,111
65,143
Movements in working capital:
Decrease/(increase) in debtors
17,504
(194,945)
Increase in creditors
3,331,117
1,105,920
(Decrease)/increase in deferred income
(787,713)
6,204,565
Cash generated from operations
9,206,802
17,863,476
10
Analysis of changes in net funds
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
21,259,340
5,274,823
26,534,163
Obligations under finance leases
-
(49,320)
(49,320)
21,259,340
5,225,503
26,484,843
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