Company registration number 04761094 (England and Wales)
S A B SECURITIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
S A B SECURITIES LIMITED
COMPANY INFORMATION
Directors
B Adam
M U Adam
Secretary
M U Adam
Company number
04761094
Registered office
37 Sudbury Court Drive
Harrow
Middlesex
HA1 3SZ
Auditor
Gravita Audit II Limited
66 Prescot Street
London
E1 8NN
Business address
37 Sudbury Court Drive
Harrow
Middlesex
HA1 3SZ
S A B SECURITIES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 18
S A B SECURITIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

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

Fair review of the business

The company’s turnover has been by stable in the year. The Move from Klienworth Hambros to Interactive Banking account structure has enabled us to successfully migrate a majority of the clients to the new platform.

 

The business model has improved in the past years due to incorporating client money and arranging client custody which has internalised client assets, allowing the firm to charge fees for safekeeping of assets and banking transactions. This side of the business has contributed to income, however due to the small nature of total holdings and legacy clients still preferring to use the old managed account structure, a rapid increase in this income stream is unlikely to occur any time soon.

 

There is a new Arrangement with Interactive brokers on the closure of the client money accounts with Kleinworth Hambros. We assume this will be beneficial for the firm as it is both lower compliance burden on SAB as this falls out of the client money remit but also more profitable a the costs of trading with IB are lower and so SAB can capture more of the trading commissions as profit.

 

Furthermore, the company is registered with, and monitored by, the Financial Conduct Authority (FCA). As a result of the ability to hold client assets and current permissions, the FCA determines that the company must maintain a capital adequacy balance of £150k all times. The directors are content that this has been maintained during the year, and at the year-end date, net assets are at £246k.

Principal risks and uncertainties

The directors consider the main business risks being faced by the company to be:

 

Exchange rate risks:

The company faces exchange rate risks as most of the revenue earned by the company is still in US Dollars and a small proportion of the revenue in Dirhams, which leaves the company exposed to translation risk in respect of foreign currency. However a major proportion of the expenses including data and feed charges are also invoiced and paid in US Dollars. The directors believe that this risk cannot be completely mitigated, as the firm requires the cash position in the foreign currencies to cover its expenses in relevant currencies.

 

Liquidity risk:

Controls are in place to ensure the company meets its capital adequacy requirements to comply with FCA rules. There is excess liquidity in the firm and the owners are willing to inject further capital if such need arises in order for the company to be compliant to the client money rules implemented by the FCA. Currently the firm holds double the amount of capital required and so is sufficiently capitalized.

 

Risk of Non-Compliance:

As always, there are controls in place to ensure the company meets its compliance including the willingness of management to seek outside consultation to ensure the firm is compliant at all times. In addition, all the staff are trained and appropriately qualified to comply with the requirements of the FCA where they are involved in client facing roles, making investment decisions or handling client monies.

Business Development and Positioning

In recent years the company has looked into expanding into different markets to increase the range of opportunities available to clients. Most of these markets have been linked to foreign securities that are already traded by clients on the London Stock Exchanges and New York stock exchange (markets where SAB provide brokerage services already). Over the last three years, one such market where links have been established was Nigeria where the company saw some turnover. However, due to the nature and condition of the market, turnover generated was low. There has been some revival in business in Nigeria, but we have seen little material change so far.

The addition of a major client looking to trade in equities will lead to significantly higher turnover. We have already seen a significant change in commissions taken in the first two financial years and this should continue for the years ahead. This will also reduce the reliance of the firm on purely bond transactions and help diversify the income stream to different financial securities transactions.

S A B SECURITIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Compliance with Section 172 Statement

We have been maintaining regular communication with stakeholders in order to understand the issues they have been facing and to update them on any relevant decisions made by the company. However,due to the impact of COVID-19 in 2020-2022, we have reduced our in-person meets and have been relying more on calls/video calls. We continue to maintain good relationships with suppliers by keeping regular communication where appropriate, again relying on calls/video calls in the current climate.

One major change we see going forward is both on the regulatory and compliance front where we will see continuing reporting requirements and associated costs. There will be a need to continuously subscribe to reporting mechanisms to effectively report transactions executed by SAB, leading to further costs of subscriptions to professional tools.

The Directors of SAB have been promoting the success of the company by maintaining the stakeholders’ trust and keeping them informed of any relevant decisions. We take into consideration any long-term consequences and how or if they would impact any of our stakeholders. This process allows us to keep providing a high standard of service to our clients and maintain a good relationship with our suppliers.

 

M U Adam
Director
5 February 2024
S A B SECURITIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

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

Principal activities

The principal activity of the company in the year under review was that of Investment Advisors and Security Broking.

Results and dividends

The results for the year are set out on page 7.

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:

B Adam
M U Adam
Future developments

The company aims to provide more investment management activities to further diversify the business and to help grow the client base further. The management believe that the current growth suggests that there has been an active move towards obtaining new clients and business.

 

In the foreseeable future, the company does not plan on requesting enhanced permissions and licenses from the FCA as the directors believe the existing permissions to be sufficient in order for the company to provide the type of services it plans to.

Auditor

In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Reference to strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

On behalf of the board
M U Adam
Director
5 February 2024
S A B SECURITIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

S A B SECURITIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF S A B SECURITIES LIMITED
- 5 -
Opinion

We have audited the financial statements of S A B Securities Limited (the 'company') for the year ended 31 October 2023 which comprise the profit and loss account, 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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:

S A B SECURITIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF S A B SECURITIES LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report 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.

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.

Daniel Howarth
for and on behalf of Gravita Audit II Limited
5 February 2024
Chartered Accountants
Statutory Auditor
66 Prescot Street
London
E1 8NN
S A B SECURITIES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
42,048
56,892
Administrative expenses
(57,253)
(50,993)
Operating (loss)/profit
4
(15,205)
5,899
Interest receivable and similar income
7
5,294
935
Interest payable and similar expenses
8
(1)
-
0
(Loss)/profit before taxation
(9,912)
6,834
Tax on (loss)/profit
9
-
0
(1,298)
(Loss)/profit for the financial year
(9,912)
5,536

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

S A B SECURITIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
£
£
(Loss)/profit for the year
(9,912)
5,536
Other comprehensive income
-
-
Total comprehensive income for the year
(9,912)
5,536
S A B SECURITIES LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
10
28,077
42,147
Cash at bank and in hand
232,416
227,974
260,493
270,121
Creditors: amounts falling due within one year
11
(14,181)
(13,897)
Net current assets
246,312
256,224
Capital and reserves
Called up share capital
12
130,000
130,000
Profit and loss reserves
116,312
126,224
Total equity
246,312
256,224
The financial statements were approved by the board of directors and authorised for issue on 5 February 2024 and are signed on its behalf by:
M U Adam
Director
Company Registration No. 04761094
S A B SECURITIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2021
130,000
120,688
250,688
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
5,536
5,536
Balance at 31 October 2022
130,000
126,224
256,224
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
(9,912)
(9,912)
Balance at 31 October 2023
130,000
116,312
246,312
S A B SECURITIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
16
445
(429)
Interest paid
(1)
-
0
Income taxes (paid)/refunded
(1,296)
2,135
Net cash (outflow)/inflow from operating activities
(852)
1,706
Investing activities
Interest received
5,294
935
Net cash generated from investing activities
5,294
935
Net increase in cash and cash equivalents
4,442
2,641
Cash and cash equivalents at beginning of year
227,974
225,333
Cash and cash equivalents at end of year
232,416
227,974
S A B SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
1
Accounting policies
Company information

S A B Securities Limited is a private company limited by shares incorporated in England and Wales. The registered office is 37 Sudbury Court Drive, Harrow, Middlesex, HA1 3SZ. The business address is 37 Sudbury Court Drive, Harrow, Middlesex, HA1 3SZ.

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. 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 represents commission received, custody charges and advisory fees.

 

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.4
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

S A B SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
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 and loans from fellow group companies 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.

Derecognition of financial liabilities

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

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.7
Taxation

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

S A B SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.8
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.

1.9
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.

 

There are no significant areas of judgement or key sources of estimation uncertainty to note.

S A B SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Commission
341
15,259
Custody charges
52
1,758
Advisory services
41,655
39,875
42,048
56,892
2023
2022
£
£
Turnover analysed by geographical market
Asia
36,450
44,881
Europe
12
-
Africa
5,586
12,011
42,048
56,892
2023
2022
£
£
Other revenue
Interest income
5,294
935
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,038
(6,276)
Operating lease charges
-
3,845
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
8,250
9,200
For other services
CASS audit services
3,300
3,300
S A B SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
6
Employees

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

2023
2022
Number
Number
Number of employees
2
2
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
5,294
935

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
5,294
935
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
1
-
0
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
1,298

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

2023
2022
£
£
(Loss)/profit before taxation
(9,912)
6,834
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(1,883)
1,298
Unutilised tax losses carried forward
1,883
-
0
Taxation charge for the year
-
1,298
S A B SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
21,837
36,284
Prepayments and accrued income
6,240
5,863
28,077
42,147
11
Creditors: amounts falling due within one year
2023
2022
£
£
Corporation tax
1
1,297
Accruals and deferred income
14,180
12,600
14,181
13,897
12
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
130,000
130,000
130,000
130,000
13
Operating lease commitments

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

2023
2022
£
£
Within one year
3,845
3,845
Between two and five years
-
0
3,845
3,845
7,690
14
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of services
2023
2022
£
£
Entities under common significant influence
39,723
55,758
S A B SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
14
Related party transactions
(Continued)
- 18 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities under common significant influence
21,837
36,283

 

15
Ultimate controlling party

The controlling party of the reporting entity is Mr M U Adam.

16
Cash generated from/(absorbed by) operations
2023
2022
£
£
(Loss)/profit for the year after tax
(9,912)
5,536
Adjustments for:
Taxation charged
-
0
1,298
Finance costs
1
-
0
Investment income
(5,294)
(935)
Movements in working capital:
Decrease/(increase) in debtors
14,070
(6,626)
Increase in creditors
1,580
298
Cash generated from/(absorbed by) operations
445
(429)
17
Analysis of changes in net funds
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
227,974
4,442
232,416
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