Company registration number 09882444 (England and Wales)
BASIS CAPITAL MARKETS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BASIS CAPITAL MARKETS UK LIMITED
COMPANY INFORMATION
Directors
A Henrikson
D Bevens
Company number
09882444
Registered office
70 Pall Mall
Third Floor
London
SW1Y 5JG
Auditor
Riches & Company
34 Anyards Road
Cobham
Surrey
KT11 2LA
BASIS CAPITAL MARKETS UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
BASIS CAPITAL MARKETS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Promoting the Success of the Company

Basis Capital Markets UK Ltd. ("Basis" or "the Firm") is a technology-driven brokerage firm that provides financial and non-financial institutions with a suite of innovative, robust, and scalable trading and risk management solutions, seamless delivery of financial products and excellent customer service. The Firm's fair and transparent approach provides its sophisticated clients seeking to maximize alpha and hedging transaction risk alike efficient access to global markets and a foundation for mutually rewarding, long-term business partnerships.

Fair Review of the Business

Supported by proprietary trading technology and liquidity providers, Basis creates value for its stakeholders by:

In 2023, FICC market revenues generally fell, mainly due to weaker performance in macro products. Within Macro, G10 Rates was the best performer. Commodities, EM Macro, and G10 FX normalized from outsized trading gains in 2022. The US Securities and Exchange Commission's approval and subsequent launch of spot Bitcoin ETFs at the beginning of 2024 enable a new phase in the maturity and adoption of digital assets. Basis' experience and expertise in traditional centralized and newly emerging decentralized finance market structures, coupled with the accelerating global adoption of digital assets by institutions, present significant opportunities for growth.

 

Principal risks and uncertainties

The successful alignment of the Firm's strategic objectives with market conditions and ever-evolving regulatory requirements remains critical. While FICC markets experienced uncertainty from global inflation, monetary policy actions, and geopolitical developments, market volatility and activity were subdued throughout much of 2023, resulting in lower trading volumes before picking up towards the end of the year.

 

Development and performance

Basis operates in a competitive, fast-changing environment where globalization and technological developments continue accelerating change. Trends that already are and will continue to shape the financial markets include:

Basis' performance typically does not depend on the direction of market prices but correlates positively with market volatility. Basis aims to achieve its strategic objectives by organically growing the business, leveraging the Firm's deep industry expertise, and deploying proprietary trading technologies. At the same time, the Firm commits to carefully controlling its costs. These efforts should support its sustainable growth.

 

BASIS CAPITAL MARKETS UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

 

 

 

 

On behalf of the board

A Henrikson
Director
11 April 2024
BASIS CAPITAL MARKETS UK 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 company continued to be brokerage and financial technology services.

Results and dividends

The results for the year are set out on 9. No ordinary dividends were paid. Accordingly, the directors do not recommend the 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:

A Henrikson
D Bevens
Business relationships

At Basis, fair treatment of clients and exceptional service are central to all activities. The Firm continually reassesses its service proposition, policies, and procedures, considering changing economic or market conditions, legal and regulatory requirements, evolving industry best practices, organizational developments, and the impact of new technology. Additionally, the Firm effectively manages sales suitability, money laundering, counter-terrorist financing, fraud, and reputational risk. Simultaneously, the choice of suppliers and business partners significantly impacts the cost and quality of the Firm's product and service offering and, ultimately, the client experience. Therefore, the Firm consistently strives to achieve a practical, professional, enterprise-ready approach, regardless of who is responsible for the procurement and its cost. The process intertwines with and underpins Basis' organizational values and culture.

 

Future developments

Basis will achieve its vision of leveling the playing field of financial market participants by increasing wallet and market share size, leveraging the investments in its platform and trading technologies, and selectively growing the business.

 

Auditor

Riches & Company were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

BASIS CAPITAL MARKETS UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable laws 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 reports in accordance with the 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 an accurate and fair view of the Company's state of affairs and the Company's profit or loss 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 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 to prevent and detect fraud and other irregularities.

 

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 to make themselves aware of all relevant audit information and establish that the Company's auditor is aware of that information.

On behalf of the board
A Henrikson
D Bevens
Director
Director
11 April 2024
BASIS CAPITAL MARKETS UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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:

 

 

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.

BASIS CAPITAL MARKETS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BASIS CAPITAL MARKETS UK LIMITED
- 6 -
Opinion

We have audited the financial statements of Basis Capital Markets UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, 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:

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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:

BASIS CAPITAL MARKETS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BASIS CAPITAL MARKETS UK LIMITED (CONTINUED)
- 7 -
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 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

BASIS CAPITAL MARKETS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BASIS CAPITAL MARKETS UK LIMITED (CONTINUED)
- 8 -

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's report.

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.

Richard Bolton
Senior Statutory Auditor
For and on behalf of Riches & Company
11 April 2024
Chartered Accountants
Statutory Auditor
34 Anyards Road
Cobham
Surrey
KT11 2LA
BASIS CAPITAL MARKETS UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
895,775
542,780
Gross profit
868,746
542,780
Administrative expenses
(837,676)
(456,968)
Other operating expenses
(27,029)
-
0
Operating profit
4
31,070
85,812
Interest payable and similar expenses
8
(73)
(131)
Profit before taxation
30,997
85,681
Tax on profit
-
0
-
0
Profit for the financial year
30,997
85,681

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

BASIS CAPITAL MARKETS UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
372
388
Current assets
Debtors
10
262,711
946,354
Cash at bank and in hand
469,325
1,109,453
732,036
2,055,807
Creditors: amounts falling due within one year
11
(472,315)
(1,825,869)
Net current assets
259,721
229,938
Total assets less current liabilities
260,093
230,326
Creditors: amounts falling due after more than one year
12
(1,501)
(2,731)
Net assets
258,592
227,595
Capital and reserves
Called up share capital
16
4,200
4,200
Share premium account
632,911
632,911
Profit and loss reserves
(378,519)
(409,516)
Total equity
258,592
227,595
The financial statements were approved by the board of directors and authorised for issue on 11 April 2024 and are signed on its behalf by:
A Henrikson
Director
Company registration number 09882444 (England and Wales)
BASIS CAPITAL MARKETS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
4,200
632,911
(495,197)
141,914
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
85,681
85,681
Balance at 31 December 2022
4,200
632,911
(409,516)
227,595
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
30,997
30,997
Balance at 31 December 2023
4,200
632,911
(378,519)
258,592
BASIS CAPITAL MARKETS UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
19
(638,418)
(413,159)
Interest paid
(73)
(131)
Net cash outflow from operating activities
(638,491)
(413,290)
Investing activities
Purchase of tangible fixed assets
(407)
-
0
Net cash used in investing activities
(407)
-
Financing activities
Repayment of bank loans
(1,230)
(1,130)
Net cash used in financing activities
(1,230)
(1,130)
Net decrease in cash and cash equivalents
(640,128)
(414,420)
Cash and cash equivalents at beginning of year
1,109,453
1,523,873
Cash and cash equivalents at end of year
469,325
1,109,453
BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Basis Capital Markets UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 70 Pall Mall, Third Floor, London, SW1Y 5JG.

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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and 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 the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
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:

Computers
33% straight line

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.

BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
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.

1.7
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.

BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

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.

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.

BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
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.

1.9
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.

1.10
Retirement benefits

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

1.11
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.

1.12
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.

BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Consultancy fees and Services
842,041
537,795
Brokerage commissions and fees
53,734
92,688
Net gains/(losses) on cryptocurrency
-
(87,703)
895,775
542,780
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
21,740
(83,744)
Depreciation of owned tangible fixed assets
423
701
Operating lease charges
124,963
20,362
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 company
6,000
6,000
6
Employees

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

2023
2022
Number
Number
5
4

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
441,496
361,667
Social security costs
46,739
38,035
Pension costs
31,553
37,537
519,788
437,239
BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
250,251
240,000
Company pension contributions to defined contribution schemes
11,610
27,120
261,861
267,120
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
120,016
138,000
Company pension contributions to defined contribution schemes
12,851
17,940

As key management consists of the directors, the figures disclosed above also represent key management personnel compensation.

8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
73
73
Other finance costs:
Other interest
-
0
58
73
131
BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
9
Tangible fixed assets
Computers
£
Cost
At 1 January 2023
2,852
Additions
407
At 31 December 2023
3,259
Depreciation and impairment
At 1 January 2023
2,464
Depreciation charged in the year
423
At 31 December 2023
2,887
Carrying amount
At 31 December 2023
372
At 31 December 2022
388
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
258,255
933,629
Prepayments and accrued income
4,456
12,725
262,711
946,354
11
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
13
1,130
1,130
Trade creditors
6,509
8,769
Taxation and social security
16,214
14,822
Deferred income
14
-
0
12,240
Other creditors
437,712
1,778,158
Accruals and deferred income
10,750
10,750
472,315
1,825,869
12
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
13
1,501
2,731
BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Loans and overdrafts
2023
2022
£
£
Bank loans
2,631
3,861
Payable within one year
1,130
1,130
Payable after one year
1,501
2,731
14
Deferred income
2023
2022
£
£
Other deferred income
-
12,240
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
31,553
37,537

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
4,000
4,000
4,000
4,000
Ordinary B of £1 each
200
200
200
200
4,200
4,200
4,200
4,200

The Ordinary shares carry full rights to receive notice of, attend and vote at general meetings. One share carried one vote, and full rights to dividends and capital distributions (including upon winding up).

 

The Ordinary B shares are non-voting shares.

 

 

 

 

 

 

 

 

 

 

BASIS CAPITAL MARKETS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Related party transactions

The company entered into transactions with Reliz Technology Group Holdings LLC ("Reliz"), a company incorporated in the Cayman Islands which owns 94% of the issued share capital of Basis Group Holdings Inc. The company charged Reliz £842,041, (2022: £537,795) for consultancy services.

18
Ultimate controlling party

The company's immediate parent company is Basis Group Holdings Inc., a company registered in the USA, whose registered office is 1201 Orange Street, Suite 600, Wilmington, New Castle County, Delaware 19801, USA.

 

The parent company does not prepare group accounts.

The company does not have an ultimate controlling party.

19
Cash absorbed by operations
2023
2022
£
£
Profit for the year after tax
30,997
85,681
Adjustments for:
Finance costs
73
131
Depreciation and impairment of tangible fixed assets
423
701
Movements in working capital:
Decrease in stocks
-
0
112,724
Decrease/(increase) in debtors
683,643
(702,927)
(Decrease)/increase in creditors
(1,341,314)
78,291
(Decrease)/increase in deferred income
(12,240)
12,240
Cash absorbed by operations
(638,418)
(413,159)
20
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,109,453
(640,128)
469,325
Borrowings excluding overdrafts
(3,861)
1,230
(2,631)
1,105,592
(638,898)
466,694
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