Company Registration No. 5311572 (England and Wales)
STRATEGIC INVESTMENTS GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STRATEGIC INVESTMENTS GROUP LIMITED
COMPANY INFORMATION
Directors
Ms S Gawaly
Mr J D Lawrence
Mr M Holmes
(Appointed 1 March 2024)
Company number
5311572
Registered office
c/o Streets Whittle & Partners LLP
The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE
Auditor
Streets Audit LLP
The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE
Business address
146 Buckingham Palace Road
London
SW1W 9TR
STRATEGIC INVESTMENTS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 30
STRATEGIC INVESTMENTS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

As previous years the core focus in 2023 has been to continue focusing on the development of the UCITS distribution business while developing and growing our UCITS infrastructure capabilities. SIG’s infrastructure and distribution business are its core activities and growing this core is critical to the growth and future of the business.

We have signed a new distribution role in December 2023. A leading Japanese Equity manager based in Japan with assets of US$15 billion under management will be working with us exclusively across Europe and will also be launching funds on the Irish Platform for institutional clients in Europe. To further develop and capitalise on both aspects of the business, SIG’s management is focused on building strategic partnerships with different service providers and creating tailor made solutions.

Principal risks and uncertainties

The principal risks remain the confidence of investors in a constantly shifting and evolving worldwide economy and the appetite to invest in managed products. In a period of extreme political instability across the globe, a continuing war in Europe and a new war in the Middle East and a difficult environment in the USA with unpredictable upcoming elections. Interaction with clients has been almost back to normal. We are able to meet in person and now we are very much pushing the managers to conduct and carry out more road shows and as many in person meetings as possible. We continue to look at technology in transforming our work environment more efficient and less manual, especially with the introduction of AI being something that could transform many industries including financial services.

Development and performance

SIG's company philosophy of focusing on client retention is a critical element of the ethos of the company and keeping a solid core team that has not shifted has also introduced a very stable experienced management team that deeply understands the clients needs and facets. The continuity of the business through difficult market environments is the result of how we tailor our offering to what our clients really tell us, and we listen very carefully to what they want. We do not do aggressive product pushes but instead we do thoughtful launches based on client requests and feedback to us. As in previous years the team continues to be very lean and works very efficiently. 2023 was a challenging year but overall, the firm managed to control its expenses and retain its clients and asset base with redemptions from the fund’s being modest and mainly coming at the end of the year. Dependent on new launches and assets raised SIG will be looking to add new members to the sales/​distribution and if required the operations team in 2024.

Key performance indicators

The directors use monthly expenses, budgets and asset growth to monitor and ensure that the annual budgeted and projected accounts are in good standing at all times. The quarterly management accounts form part of the reporting that is used to analyse the performance of the group.

STRATEGIC INVESTMENTS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Promoting the success of the company

The company is classified as a large company as it is authorised and regulated by the Financial Conduct Authority (FCA) as a cad-exempt MiFid firm. It does not otherwise meet the size requirements to qualify as a large company under the Companies Act 2006.

 

The directors consider that the key stakeholders for the company are its employees, clients and shareholders.

 

Due to the small number of employees of the company the directors have engaged with each of them as necessary during the period under review.

 

The company has continued to trade in the year in line with previous years taking into account the needs and parameters of its clients when providing financial service and investment management services. It operates under the strict rules set out by the FCA which includes treating customers fairly and taking into account their specific circumstances as part of their overall service.

 

The company provides and maintains regular communications with its shareholders and considers their position when making decisions for the future plans for the business.

On behalf of the board

Mr J D Lawrence
Director
22 April 2024
STRATEGIC INVESTMENTS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the group was marketing and client service provision to institutional investors.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Ms S Gawaly
Mr A Ballos
(Resigned 31 March 2024)
Mr J D Lawrence
Mr M Holmes
(Appointed 1 March 2024)
Post reporting date events

There are no post balance sheet events that could materially affect these accounts or the result for the year.

Energy and carbon report

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr J D Lawrence
Director
22 April 2024
STRATEGIC INVESTMENTS GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STRATEGIC INVESTMENTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRATEGIC INVESTMENTS GROUP LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

STRATEGIC INVESTMENTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRATEGIC INVESTMENTS GROUP LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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:

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 parent 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 parent 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.

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.

The audit tests, including planning procedures, adopted for the audit of these financial statements are designed to assess and detect the risk of irregularities, including fraud. Our risk assessment of the likelihood of irregularities included the high degree of involvement of the experienced directors, which reduces the risk of irregularities. The audit team was competent to assess the risk and identify any potential irregularities. A thorough understanding of the processes, frameworks and authorisations in place was obtained from the directors and tested throughout the audit.

STRATEGIC INVESTMENTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRATEGIC INVESTMENTS GROUP LIMITED
- 7 -

We obtained an understanding of the legal and regulatory framework that the company operates in, and

identified the key laws and regulations that:

 

 

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the company for fraud and how and where fraud might occur in the financial statements.

 

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following areas, and our specific procedures performed to address them are described below:

 

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

In addition to the above, our procedures to respond to the risks identified included the following:

 

As the parent company is FCA regulated the additional legislation and rules relating to this organisation was also considered.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

STRATEGIC INVESTMENTS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRATEGIC INVESTMENTS GROUP LIMITED
- 8 -

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.

Rachel Skells BA FCA (Senior Statutory Auditor)
For and on behalf of Streets Audit LLP
22 April 2024
Chartered Accountants
Statutory Auditor
The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE
STRATEGIC INVESTMENTS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
1,621,415
1,751,972
Cost of sales
(135,684)
(243,031)
Gross profit
1,485,731
1,508,941
Administrative expenses
(1,489,528)
(1,305,604)
Operating (loss)/profit
4
(3,797)
203,337
Interest receivable and similar income
8
10
-
0
Interest payable and similar expenses
9
(3)
(532)
Amounts written off investments
10
17,182
16
Profit before taxation
13,392
202,821
Tax on profit
11
(17,272)
(23,100)
(Loss)/profit for the financial year
22
(3,880)
179,721
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

STRATEGIC INVESTMENTS GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
14,073
15,375
Investments
14
18,067
885
32,140
16,260
Current assets
Debtors
16
410,924
477,066
Cash at bank and in hand
379,760
358,586
790,684
835,652
Creditors: amounts falling due within one year
17
(299,590)
(324,798)
Net current assets
491,094
510,854
Net assets
523,234
527,114
Capital and reserves
Called up share capital
20
100
100
Other reserves
22
(48,543)
(42,214)
Profit and loss reserves
22
571,677
569,228
Total equity
523,234
527,114
The financial statements were approved by the board of directors and authorised for issue on 22 April 2024 and are signed on its behalf by:
22 April 2024
Mr J D Lawrence
Director
Company registration number 5311572 (England and Wales)
STRATEGIC INVESTMENTS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
14,072
15,374
Investments
14
18,068
886
32,140
16,260
Current assets
Debtors
16
404,853
477,066
Cash at bank and in hand
367,228
328,225
772,081
805,291
Creditors: amounts falling due within one year
17
(328,017)
(313,788)
Net current assets
444,064
491,503
Net assets
476,204
507,763
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
22
476,104
507,663
Total equity
476,204
507,763

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £31,559 (2022 - £3,886 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 April 2024 and are signed on its behalf by:
22 April 2024
Mr J D Lawrence
Director
Company registration number 5311572 (England and Wales)
STRATEGIC INVESTMENTS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
100
(33,715)
381,008
347,393
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
179,721
179,721
Transfers
-
(8,499)
8,499
-
Balance at 31 December 2022
100
(42,214)
569,228
527,114
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(3,880)
(3,880)
Transfers
-
(6,329)
6,329
-
Balance at 31 December 2023
100
(48,543)
571,677
523,234
STRATEGIC INVESTMENTS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
503,777
503,877
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
3,886
3,886
Balance at 31 December 2022
100
507,663
507,763
Year ended 31 December 2023:
Profit and total comprehensive income
-
(31,559)
(31,559)
Balance at 31 December 2023
100
476,104
476,204
STRATEGIC INVESTMENTS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
60,596
488,260
Interest paid
(3)
(532)
Income taxes paid
(34,084)
(47,514)
Net cash inflow from operating activities
26,509
440,214
Investing activities
Purchase of tangible fixed assets
(5,542)
(5,761)
Proceeds on disposal of subsidiaries
(17,176)
-
Proceeds on disposal of investments
17,176
-
(Advance)/repayment of directors' loans
206
(2,959)
Interest received
10
-
0
Net cash used in investing activities
(5,326)
(8,720)
Financing activities
Repayment of borrowings
(9)
(430,755)
Net cash used in financing activities
(9)
(430,755)
Net increase in cash and cash equivalents
21,174
739
Cash and cash equivalents at beginning of year
358,586
357,847
Cash and cash equivalents at end of year
379,760
358,586
STRATEGIC INVESTMENTS GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
44,446
57,102
Income taxes paid
(107)
(47,514)
Net cash inflow from operating activities
44,339
9,588
Investing activities
Purchase of tangible fixed assets
(5,542)
(5,761)
Proceeds on disposal of subsidiaries
(17,176)
-
0
Proceeds on disposal of investments
17,176
-
0
(Advance)/repayment of directors' loans
206
(2,959)
Net cash used in investing activities
(5,336)
(8,720)
Net increase in cash and cash equivalents
39,003
868
Cash and cash equivalents at beginning of year
328,225
327,357
Cash and cash equivalents at end of year
367,228
328,225
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Strategic Investments Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is c/o Streets Whittle & Partners LLP, The Old Exchange, 64 West Stockwell Street, Colchester, Essex, CO1 1HE. The principal place of business is 146 Buckingham Palace Road, London, SW1W 9TR.

 

The group consists of Strategic Investments Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Strategic Investments Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover represents amounts receivable for services provided to institutional investors and other service agreements with institutional providers.

1.5
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:

Fixtures, fittings & equipment
25% straight line
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

 

Financial assets comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital.

 

Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, deferred income and provisions. Assets and liabilities held in foreign currencies are translated to GBP at the balance sheet date at an appropriate year end exchange rate.

1.9
Equity instruments

Equity instruments issued by the group 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 group.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Share-based payments

The company has issued share options to certain employees of its subsidiary company, SIG (Deutschland) GmbH.

1.14
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 leased asset are consumed.

1.15
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.

STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Accrued income

The accrued income is calculated by reference to the value of the fund at each quarter end and is based on the contractual terms.

 

Balances are considered factual but movements in foreign exchange rates can impact the figures throughout the year.

Rebates

Rebate expenditure is based on the value of the fund at the quarter end from which the introducer fees are calculated.

 

Balances are considered factual but movements in foreign exchange rates can impact the figures throughout the year.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Investment fee income
1,621,415
1,751,972
2023
2022
£
£
Other revenue
Interest income
10
-
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging:
Exchange losses
11,963
18,109
Depreciation of owned tangible fixed assets
6,844
6,033
(Profit)/loss on disposal of tangible fixed assets
-
265
Operating lease charges
146,971
126,884
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,393
12,480
For other services
Taxation compliance services
1,470
1,375
All other non-audit services
15,493
13,097
16,963
14,472
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales and administration
8
8
7
7

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
842,653
761,149
699,521
602,908
Social security costs
95,292
79,419
82,598
66,368
Pension costs
2,836
3,728
2,836
3,728
940,781
844,296
784,955
673,004
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
460,000
380,000
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
160,000
170,833
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
10
-
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
3
532

 

 

10
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
6
16
Other gains/(losses)
Other gains and losses
17,176
-
17,182
16
11
Taxation
2023
2022
£
£
Current tax
Corporation tax on profits for the current period
17,272
23,100
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 22 -

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

2023
2022
£
£
Profit before taxation
13,392
202,821
Expected tax charge based on the standard rate of corporation tax in the UK of 019% (2022: 19.00%)
2,544
38,536
Tax effect of expenses that are not deductible in determining taxable profit
9,810
8,961
Tax effect of utilisation of tax losses not previously recognised
-
0
(25,941)
Double tax relief
7,935
11,068
Depreciation on assets not qualifying for tax allowances
1,300
1,146
Effect of revaluations of investments
(3,264)
-
0
Under/(over) provided in prior years
-
0
(9,405)
Capital allowances
(1,053)
(1,265)
Taxation charge
17,272
23,100
12
Impairments

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
14
17,176
-
Recognised in:
Amounts written off investments
17,176
-
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Tangible fixed assets
Group
Fixtures, fittings & equipment
£
Cost
At 1 January 2023
58,255
Additions
5,542
At 31 December 2023
63,797
Depreciation and impairment
At 1 January 2023
42,880
Depreciation charged in the year
6,844
At 31 December 2023
49,724
Carrying amount
At 31 December 2023
14,073
At 31 December 2022
15,375
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 24 -
Company
Fixtures, fittings & equipment
£
Cost
At 1 January 2023
36,556
Additions
5,542
At 31 December 2023
42,098
Depreciation and impairment
At 1 January 2023
21,182
Depreciation charged in the year
6,844
At 31 December 2023
28,026
Carrying amount
At 31 December 2023
14,072
At 31 December 2022
15,374
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
23
17,176
-
0
17,177
1
Listed investments
891
885
891
885
18,067
885
18,068
886
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Group
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
-
885
885
Valuation changes
-
6
6
At 31 December 2023
-
891
891
Impairment
At 1 January 2023
-
-
-
Impairment losses
(17,176)
-
(17,176)
At 31 December 2023
(17,176)
-
(17,176)
Carrying amount
At 31 December 2023
17,176
891
18,067
At 31 December 2022
-
885
885
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
1
885
886
Valuation changes
-
6
6
At 31 December 2023
1
891
892
Impairment
At 1 January 2023
-
-
-
Impairment losses
(17,176)
-
(17,176)
At 31 December 2023
(17,176)
-
(17,176)
Carrying amount
At 31 December 2023
17,177
891
18,068
At 31 December 2022
1
885
886
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
347,718
456,871
347,717
456,871
Equity instruments measured at cost less impairment
891
885
891
885
Carrying amount of financial liabilities
Measured at amortised cost
257,572
275,306
297,472
287,289
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
332,279
441,624
332,278
441,624
Corporation tax recoverable
6,070
-
0
-
0
-
0
Other debtors
15,439
15,247
15,439
15,247
Prepayments and accrued income
57,136
20,195
57,136
20,195
410,924
477,066
404,853
477,066
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
18
553
562
-
0
-
0
Trade creditors
40,349
51,916
40,266
19,815
Amounts owed to group undertakings
-
0
-
0
51,059
53,765
Corporation tax payable
12,358
23,100
885
107
Other taxation and social security
29,660
26,392
29,660
26,392
Other creditors
121,387
121,824
117,240
117,497
Accruals and deferred income
95,283
101,004
88,907
96,212
299,590
324,798
328,017
313,788
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Loans from related parties
553
562
-
0
-
0
Payable within one year
553
562
-
0
-
0
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,836
3,728

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
21
Share-based payment transactions

An employee of the subsidiary company, SIG (Deutschland) GmbH has been granted share options over 3 ordinary shares in Strategic Investments Group Limited at £9,000 per share under an EMI Share Option Agreement dated 30 September 2021. The option is only exercisable whilst an employee and lapses 10 years after the date of the grant.

22
Reserves
Other reserves

The other reserve represents the movement on the exchange differences on consolidation of the subsidiary SIG (Deutschland) GmbH.

STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
23
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
SIG (Deutschland) GmbH
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Stahltwiete 20, 22761, Hamburg, Germany

The investment in the subsidiary is stated at cost.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
99,000
99,000
99,000
99,000
Between two and five years
44,500
143,500
44,500
143,500
143,500
242,500
143,500
242,500
25
Directors' transactions

Interest free loans have been granted by the group to its directors as follows:

Description
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Wages in advance
7,585
7,482
(7,585)
7,482
Wages in advance
7,585
7,482
(7,585)
7,482
15,170
14,964
(15,170)
14,964

The amounts advanced to the directors were repaid on 31 January 2024.

 

26
Related party transactions
Transactions with related parties
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Related party transactions
(Continued)
- 29 -

There is a distribution agreement between the company and Strategic Investment Funds UCITS Plc, a company registered in Ireland and in which Mr A Ballos and Ms S Gawaly are directors of. During the year income of £1,413,737 was received (2022: £1,655,212) and at the year end £332,278 (2022: £441,698) was due to the company.

27
Controlling party

The company is controlled by Mr Athanasios Ballos who owns 89% of the issued ordinary share capital of the company.

28
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(3,880)
179,721
Adjustments for:
Taxation charged
17,272
23,100
Finance costs
3
532
Investment income
(10)
-
0
(Gain)/loss on disposal of tangible fixed assets
-
265
Depreciation and impairment of tangible fixed assets
6,844
6,033
Other gains and losses
(17,182)
(16)
Movements in working capital:
Decrease in debtors
72,006
246,861
(Decrease)/increase in creditors
(14,457)
31,764
Cash generated from operations
60,596
488,260
STRATEGIC INVESTMENTS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
29
Cash generated from operations - company
2023
2022
£
£
(Loss)/profit for the year after tax
(31,559)
3,886
Adjustments for:
Taxation charged
885
107
(Gain)/loss on disposal of tangible fixed assets
-
265
Depreciation and impairment of tangible fixed assets
6,844
6,033
Other gains and losses
(17,182)
(16)
Movements in working capital:
Decrease in debtors
72,007
246,861
Increase/(decrease) in creditors
13,451
(200,034)
Cash generated from operations
44,446
57,102
30
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
358,586
21,174
379,760
Borrowings excluding overdrafts
(562)
9
(553)
358,024
21,183
379,207
31
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
328,225
39,003
367,228
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