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Registration number: 09051799

Bowmore Asset Management Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2023

 

Bowmore Asset Management Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 24

 

Bowmore Asset Management Limited

Company Information

Directors

Mr M W Incledon

Ms G Millen

Mr O J Webster-Smith

Mr C T Incledon

Registered office

Suite 5, Farleigh House
Farleigh Court
Old Weston Road
Flax Bourton
Bristol
BS48 1UR

Accountants

Newsham Hanson Accountants Limited
Accountant & Business Advisors
Edinburgh House
1-5 Bellevue Road
Clevedon
North Somerset
BS21 7NP

Auditors

Pareto Analysis Limited
Chartered Certified Accountants
Parkview
23 Wadham Street
Weston-super-Mare
Somerset
BS23 1JZ

 

 

Bowmore Asset Management Limited

Strategic Report for the Year Ended 30 June 2023

The directors present their strategic report for the year ended 30 June 2023.

Principal activity

The principal activity of the company is that of investment portfolio management.

Fair review of the business

The environment for managing client money has remained volatile with the post-Covid supply-chain issues then eclipsed by the war in Ukraine and rising inflation. However, we are pleased to report that our portfolios have weathered the various storms well and delivered consistency in accordance with the 7-step model.

As a consequence, we have still managed to build funds under management and grow the business; albeit not at the scale that we were anticipating a year ago.

We are still firmly of the opinion that we have laid down foundations to scale the business and meet our strategic objectives over the next three years. We continue to invest in technology and have successfully launched our client portal for the benefit of our bespoke clients.

As we offer both Discretionary and Managed Portfolio solutions, we have been able to adapt relatively easily to the additional requirements of Consumer Duty regulations which come into effect from the end of July 2023; delivering the services and cost structures suited to our client needs.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Gross Profit

£

1,412,254

1,190,666

Gross Profit %

%

84

78

In a company of this size, the Directors consider there to be numerous non-financial performance indicators but no individual metric is key.

Future Developments

We have continued to operate in a challenging environment of economic and political volatility, resulting in moderate gains in revenue performance.

Although this is a disappointing outcome, we remain confident about our future and continue to invest in both technology and digital marketing to support our distribution efforts. This strategy will support our organic growth.

We are also actively seeking acquisition opportunities and are confident in our abilities to fund these with minimal risk to the business - both operationally and financially.

For the present time, we are focusing on our sister company - Bowmore Financial Planning Limited - as the primary distribution channel, although we can adapt our model to serve third-party distributors should such opportunities develop further.

We have revised our business targets for the next three years and remain confident that the targets set, whilst challenging, are also achievable.
 

 

Bowmore Asset Management Limited

Strategic Report for the Year Ended 30 June 2023

Principal risks and uncertainties

The risks facing us moving forward are numerous and we are conscious of our relative size compared to many of our peer group and this is exactly the reason for our continued expansion. However, we want to continue to portray a feeling that we remain a family orientated business with old fashioned family values. We place our clients at the centre of everything we do and nothing that we plan to achieve as a business will have a detrimental impact on the service we provide to our clients.

The board is responsible for determining the level of risk acceptable to the company. This is subject to a regular review. The company seeks to mitigate its risks through the application of strict limits and controls and a monitoring process at operational level. Where it is appropriate and cost effective risks are passed to insurers.

Credit Risk
Credit risk is the risk that counterparties will not be able to meet their obligations as they fall due. There are regular credit reviews of counterparty limits to ensure debtors remain at a reasonable level. Credit reviews are undertaken before new counterparties are accepted.

Operational Risks
Operational risk is caused by failures in business processes or the systems or physical infrastructure that support them that have the potential to result in financial loss or reputation damage. This includes errors, omissions, systems failure, lack of resources or physical assets and deliberate acts such as fraud. The regulated environment in which the company operates, imposes extensive reporting requirements and continuing self assessment and appraisal. The company seeks to continually improve its operating efficiencies and standards.

Liquidity Risk
The company ensures that liquidity risk is maintained by monitoring cash balances daily to ensure it retains flexibility in the management of cash flows.

Market Risk
The company is affected by changes in market performance, as income of the company is derived from both performance and management fees arising from various funds under management.

Future Developments
2020 marked a significant year for the business. Aside from the Covid pandemic, we had reorganised and rebranded the group business, with the aim of then building and expanding the investment proposition, aiming to build via further marketing and business development in order to firmly establish Bowmore Asset Management on the investment management map.

The Board were delighted to finally secure the appointment of Jonathan Webster-Smith, as both director and shareholder within the group. Jonathan has taken on the role of Chief Investment Officer, bringing over 20 years’ experience in fund management, especially the development of Managed Portfolio Services, with him.

With Jonathan joining in May 2021, this also coincided with the appointment of Charles Incledon to the Bowmore Asset Management board as Client Service Director.

Although our sister company, Bowmore Financial Planning will continue to act as our primary distribution channel, we are also looking to widen the reach of Bowmore Asset Management by distributing through other third-party advisers. We are planning to recruit a number of business development executives over the next few months as well as replicating our Managed Portfolio Services onto a wider range of platforms.

We believe that with the above, alongside further growth and acquisition by Bowmore Financial Planning, Bowmore should add a further £100m in Funds Under Management over the course of the next financial year and will retain its position as one of the fastest growing Discretionary Fund Managers in the UK.

 

Bowmore Asset Management Limited

Strategic Report for the Year Ended 30 June 2023

Approved and authorised by the Board on 16 October 2023 and signed on its behalf by:
 

.........................................
Mr M W Incledon
Director

 

Bowmore Asset Management Limited

Directors' Report for the Year Ended 30 June 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

Directors of the company

The directors who held office during the year were as follows:

Mr M W Incledon

Ms G Millen

Mr O J Webster-Smith

Mr C T Incledon

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Pareto Analysis Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 16 October 2023 and signed on its behalf by:
 

.........................................
Mr M W Incledon
Director

 

Bowmore Asset Management Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

 

Bowmore Asset Management Limited

Independent Auditor's Report to the Members of Bowmore Asset Management Limited

Opinion

We have audited the financial statements of Bowmore Asset Management Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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 June 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

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.

Matters on which we are required to report by exception

In the light of our 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 where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

 

Bowmore Asset Management Limited

Independent Auditor's Report to the Members of Bowmore Asset Management Limited

Conclusions relating to going concern

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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’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:

 

Bowmore Asset Management Limited

Independent Auditor's Report to the Members of Bowmore Asset Management Limited

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting
material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with
governance of the entity and management.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006) and the relevant direct and indirect tax compliance regulation in the United Kingdom. In addition, the Company has to comply with laws and regulations relating to employment, data protection and anti-bribery and corruption. The Company is also regulated by the Financial Conduct Authority.

• We understood how the Company is complying with those frameworks by making enquiries of management to understand how the Company maintains and communicates its policies and procedures in these areas and corroborated this by reviewing supporting documentation.

• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override and by assuming revenue to be a fraud risk.

• Based on this understanding we designed our audit procedures to identity noncompliance with such laws and regulations. Our procedures involved testing journals identified by specific risk criteria.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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.
 

 

Bowmore Asset Management Limited

Independent Auditor's Report to the Members of Bowmore Asset Management Limited

......................................
Paul William John (Senior Statutory Auditor)
For and on behalf of Pareto Analysis Limited, Statutory Auditor

Parkview
23 Wadham Street
Weston-super-Mare
Somerset
BS23 1JZ


 

16 October 2023

 

Bowmore Asset Management Limited

Profit and Loss Account for the Year Ended 30 June 2023

Note

2023
£

2022
£

Turnover

3

1,686,734

1,522,827

Cost of sales

 

(274,480)

(332,161)

Gross profit

 

1,412,254

1,190,666

Administrative expenses

 

(1,108,249)

(1,130,763)

Other operating income

4

2,500

706

Operating profit

5

306,505

60,609

Interest payable and similar expenses

6

(12,171)

(11,313)

Profit before tax

 

294,334

49,296

Tax on profit

10

(54,338)

(9,202)

Profit for the financial year

 

239,996

40,094

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Bowmore Asset Management Limited

Statement of Comprehensive Income for the Year Ended 30 June 2023

2023
£

2022
£

Profit for the year

239,996

40,094

Total comprehensive income for the year

239,996

40,094

 

Bowmore Asset Management Limited

(Registration number: 09051799)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

29,823

-

Tangible assets

12

4,839

8,341

 

34,662

8,341

Current assets

 

Debtors

13

1,241,726

1,319,351

Cash at bank and in hand

 

316,458

582,513

 

1,558,184

1,901,864

Creditors: Amounts falling due within one year

15

(497,653)

(1,016,114)

Net current assets

 

1,060,531

885,750

Total assets less current liabilities

 

1,095,193

894,091

Creditors: Amounts falling due after more than one year

15

(117,502)

(156,396)

Net assets

 

977,691

737,695

Capital and reserves

 

Called up share capital

5

5

Share premium reserve

18

399,996

399,996

Retained earnings

18

577,690

337,694

Shareholders' funds

 

977,691

737,695

Approved and authorised by the Board on 16 October 2023 and signed on its behalf by:
 

.........................................
Mr M W Incledon
Director

 

Bowmore Asset Management Limited

Statement of Changes in Equity for the Year Ended 30 June 2023

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 July 2022

5

399,996

337,694

737,695

Profit for the year

-

-

239,996

239,996

At 30 June 2023

5

399,996

577,690

977,691

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 July 2021

5

399,996

297,600

697,601

Profit for the year

-

-

40,094

40,094

At 30 June 2022

5

399,996

337,694

737,695

 

Bowmore Asset Management Limited

Statement of Cash Flows for the Year Ended 30 June 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

239,996

40,094

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

8,255

6,618

Finance costs

6

12,171

11,313

Income tax expense

10

54,338

9,202

Difference due to rounding

 

1

-

 

314,761

67,227

Working capital adjustments

 

Decrease/(increase) in trade debtors

13

77,625

(659,085)

(Decrease)/increase in trade creditors

15

(559,643)

479,147

Cash generated from operations

 

(167,257)

(112,711)

Income taxes paid

10

(9,202)

(39,501)

Net cash flow from operating activities

 

(176,459)

(152,212)

Cash flows from investing activities

 

Acquisitions of tangible assets

(1,440)

(9,714)

Acquisition of intangible assets

11

(33,137)

-

Net cash flows from investing activities

 

(34,577)

(9,714)

Cash flows from financing activities

 

Interest paid

6

(12,171)

(11,313)

Proceeds from bank borrowing draw downs

 

(42,848)

(46,802)

Net cash flows from financing activities

 

(55,019)

(58,115)

Net decrease in cash and cash equivalents

 

(266,055)

(220,041)

Cash and cash equivalents at 1 July

 

582,513

802,554

Cash and cash equivalents at 30 June

 

316,458

582,513

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Suite 5, Farleigh House
Farleigh Court
Old Weston Road
Flax Bourton
Bristol
BS48 1UR

These financial statements were authorised for issue by the Board on 16 October 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

33% straight line

Office equipment

33% straight line

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Development costs

33% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

1,686,734

1,522,827

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

2,500

706

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

4,941

6,618

Amortisation expense

3,314

-

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

6

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

12,171

11,313

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

549,354

557,910

Social security costs

75,525

58,997

Other short-term employee benefits

18,233

17,918

Pension costs, defined contribution scheme

14,744

44,742

Other employee expense

3,124

52,964

660,980

732,531

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

6

7

6

7

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

366,180

314,068

Contributions paid to money purchase schemes

4,040

33,445

370,220

347,513

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

3,480

4,030


 

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

54,338

9,202

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 20.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

294,334

49,296

Corporation tax at standard rate

60,326

9,366

Effect of expense not deductible in determining taxable profit (tax loss)

2,695

978

Tax decrease from effect of capital allowances and depreciation

(8,683)

(1,142)

Total tax charge

54,338

9,202

As at 01st April 2023 the effective tax rate changed from 19% to 25%

The rate shown above is the average corporation tax rate for the period

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

11

Intangible assets

Internally generated software development costs
 £

Total
£

Cost or valuation

At 1 July 2022

5,600

5,600

Additions acquired separately

33,137

33,137

At 30 June 2023

38,737

38,737

Amortisation

At 1 July 2022

5,600

5,600

Amortisation charge

3,314

3,314

At 30 June 2023

8,914

8,914

Carrying amount

At 30 June 2023

29,823

29,823

12

Tangible assets

Fixtures and fittings
£

Office equipment
£

Total
£

Cost or valuation

At 1 July 2022

3,760

21,809

25,569

Additions

-

1,440

1,440

At 30 June 2023

3,760

23,249

27,009

Depreciation

At 1 July 2022

3,760

13,468

17,228

Charge for the year

-

4,942

4,942

At 30 June 2023

3,760

18,410

22,170

Carrying amount

At 30 June 2023

-

4,839

4,839

At 30 June 2022

-

8,341

8,341

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

13

debtors

Current

2023
£

2022
£

Trade debtors

400,087

415,180

Other debtors

789,039

840,577

Prepayments

52,600

63,594

 

1,241,726

1,319,351

14

Cash and cash equivalents

2023
£

2022
£

Cash at bank

316,458

582,513

15

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

19

42,848

46,802

Trade creditors

 

65,353

132,484

Social security and other taxes

 

55,025

139,555

Outstanding defined contribution pension costs

 

2,390

2,892

Other payables

 

243,819

605,036

Accruals

 

33,880

80,143

Income tax liability

10

54,338

9,202

 

497,653

1,016,114

Due after one year

 

Loans and borrowings

19

117,502

156,396

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £14,744 (2022 - £44,742).

Contributions totalling £2,390 (2022 - £2,892) were payable to the scheme at the end of the year and are included in creditors.

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

17

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A share of £0.01 each

25

-

25

-

Ordinary B share of £0.01 each

25

-

25

-

Ordinary C share of £0.01 each

50

1

50

1

Ordinary D share of £0.01 each

300

3

300

3

Ordinary E share of £0.01 each

100

1

100

1

 

500

5

500

5

18

Reserves

Share premium

Share premium account contains the premium arising on issue of equity shares, in excess of their nominal value, net of issue of expenses.

19

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

117,502

156,396

2023
£

2022
£

Current loans and borrowings

Bank borrowings

42,848

46,802

20

Commitments

Other financial commitments

Property lease
The total amount of other financial commitments not provided in the financial statements was £40,176 (2022 - £38,000).

21

Control

The company is controlled by its Parent company, Bowmore Wealth Group Limited, which owns 100% of the called up share capital.

 

Bowmore Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

22

Related party transactions

Summary of transactions with other related parties

M Incledon
G Millen
O Webster-Smith

 
Directors and shareholders of the company

 
Bowmore Financial Planning Limited

M Incledon and G Millen are directors of the company and Bowmore Financial Planning Limited.

Management charges of £120,000 (2022 - £120,000) were paid to Bowmore Financial Planning Limited during the year.

The amount due from Bowmore Financial Planning Limited at the balance sheet date is £780,399 (2022 - £822,337). No interest is payable on the outstanding balance.


Bowmore Wealth Group Limited

M Incledon, G Millen & O Webster-Smtih are directors of the company Bowmore Wealth Group Limited.

The amount due to Bowmore Wealth Group Lmited at the balance sheet date is £243,278 (2022 - £243,278) No interest is payable on the outstanding balance.