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REGISTERED NUMBER: 04479650 (England and Wales)












STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022


FOR



SKYBOUND WEALTH MANAGEMENT LIMITED


SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022











Page



Company Information  

1



Strategic Report  

2



Report of the Directors  

4



Report of the Independent Auditors  

6



Statement of Comprehensive Income

10



Balance Sheet  

11



Statement of Changes in Equity  

12



Cash Flow Statement  

13



Notes to the Cash Flow Statement  

14



Notes to the Financial Statements

15




SKYBOUND WEALTH MANAGEMENT LIMITED


COMPANY INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2022









DIRECTORS:

I M Sweet


J J Burton







REGISTERED OFFICE:

Mbp3 Carbrook Hall Road


Sheffield


S9 2EQ







REGISTERED NUMBER:

04479650 (England and Wales)







AUDITORS:

Haines Watts, Statutory Auditor


Chartered Accountants


The Lightbox


87 Castle Street


Reading


Berkshire


RG1 7SN


SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022



The directors present their strategic report for the year ended 31 December 2022.


REVIEW OF BUSINESS

The Directors report an increase of revenue in the year from £4.21m to £4.63m, this represents an increase of 10%.


The company has continued to focus on increasing its fee-paying Assets under Advice (AUA) since 2020.

The strategy included the improvement of the investment portfolios, increased business development initiatives and offering clients' best in class service.


Due to the AUA increase and new clients being introduced, the revenue increased.


PRINCIPAL RISKS AND UNCERTAINTIES

In consideration of the business and regulatory risks inherent to the Company and its industry, the Directors have identified, in their judgment, the following key risks with the detail as to how the Company implements risk mitigation procedures to reduce the risk to an acceptable level:


Key Person Risks - The Company is long established with defined processes and controls.  Together with a cross-over of key functions and the ability to delegate to experienced support while maintaining the appropriate level of duty segregation adequately mitigates the associated risk.  Further, as part of a larger Group there is sufficient expertise available to fulfil all functions.


Regulatory Compliance - The Company has strong systems and implements rigorous controls to provide appropriate oversight of the Financial Planning process to adequately mitigate the associated risk.  To further inform the compliance view, the Company is advised by three different independent regulatory consultancy firms.


Regulatory Changes - Due to the wealth of compliance experience within the Company, it is adept at process change to proactively respond to regulatory changes and appropriately mitigate the associated risk. Adhering strictly to legal and regulatory affairs, the Company liaises, listens and proactively reacts to updates provided by the independent regulatory consultants to align the Company with RCA requirements.


Market Performance - The Company ethos is one of low-risk capital management.  The Company provides a wide diversity of fund choices which reduces client exposure if markets fall, thereby providing adequate mitigation of the associate risk.  Adroit choice, meticulous risk analysis and investment funds of substance that maintain substantial liquidity are additional key drivers.  The latter gives flexibility in times of downturn, providing easy access to fund withdrawals.  Continuous portfolio reviews preserve stability.  Unbroken personal interaction linked to constant communication with clients, facilitates the Company's ability to react to protect clients.


Protection of client personal information - Fulfilling legal and social responsibility to protect personal information is ingrained throughout the corporate activities of the Company.  The Company complies with Data Protection rules applicable to the UK through specifically designed processes and implemented controls to adequately mitigate the associated risk.  Included in our annual Anti Money Laundering Regulation review is a reaffirmation of the need to protect all client information and to be aware of identity theft.



SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022


SECTION 172(1) STATEMENT

The Directors consider they have effectively implemented their roles and responsibilities under section 172 of the Companies Act 2006 with the following processes continuing to be employed:


-Establishing a long-term strategy for the business which will continue to deliver successful results for the business, its employee's and wider stakeholders.

-Fostering relationships throughout the business, acting fairly between members of the company and treating all stakeholders with respect.

-Considering the impact, we have on the environment and the communities in which we work both on individual projects and the business as a whole.


STRATEGIC PLANS

The Company plans to continue to increase net profit after tax as a key performance indicator for Shareholders through the following Strategic Plans:


- Identify value added services to offer the existing clients base to maximise the return of assets under advisory.

- Identify organic growth opportunities and implement growth initiates to increase assets under advisory in the current geographical market in which the Company operates.

- Identify strategic acquisition targets to increase or augment the Company's geographical footprint and to increase assets under advisory.

- Maintain a stable overhead base

- Continue to improve on the client offering with specific focus on the clients' digital experience and provide improved technology tools to advisors to ensure that they have the best tools available to advise the clients.

- Increase the company's ability to add to the services it can offer its existing clients with the aim to manage a larger proportion of the clients' wealth.

- Improvement of systems and processes through technology to ensure the company to scale and grow revenue while limiting cost increases.

- Continued recruitment efforts to attract more advisors and their clients to the company and its branch.


ON BEHALF OF THE BOARD:






J J Burton - Director



8 March 2024


SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2022



The directors present their report with the financial statements of the company for the year ended 31 December 2022.  


PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of financial management.

BRANCH
Skybound Wealth Management Limited operates internationally through a branch in Abu Dhabi.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2022.


DIRECTOR

The directors who have held office during the period from 1 January 2022 to the date of this report are as follows:


F Neill - resigned 23 October 2023

J J Burton - resigned 4 February 2022


I M Sweet was appointed as a director after 31 December 2022 but prior to the date of this report.


J J Burton was reappointed as a director after 31 December 2022 but prior to the date of this report.


STAKEHOLDER ENGAGEMENT

The directors recognise the importance of considering all stakeholders in its decision making.


Clients

Skybound Wealth Management is a company that prides itself on innovation. We welcome new ideas and we believe that strong relationships can add value for everyone.

Our ambition is to provide the correct level of services to the clients, and have a minimal environmental impact. We believe that growth starts with understanding our clients and being relevant to their needs.


Insights into our markets, competitors and clients are important to identify and priorities opportunities. We continuously monitor the operating environment and how it is changing through on-going dialogue with our clients. Client experience is at the centre of everything we do and the experience we deliver to them must always meet their expectations.


Employees

Our people are our most important asset, and our future depends on continuing to attract, retain and develop the right people and evolve with them. Our employees are provided with opportunities, responsibilities, and the authority to act. The company promotes continuous employee development and employees are actively encouraged to seek out opportunities and develop their own career.


The company must manage social and ethical issues and observes high standards of integrity and responsible practices. Ethical employee behaviour is central to this and is promoted among employees through the group-wide code of conduct. The code is a key component of the induction program, and all employees are expected to follow it from day one. The code of conduct underlines commitment to fair employment conditions and labour rights, and takes clear stand against human rights abuses, child labour and forced labour of any kind.


Suppliers and Partners

The company has established and maintains a strong relationship with suppliers and partners.


Wherever we do business, we follow our code of conduct and abide by the laws and regulations governing business ethics in the countries in which we operate. We require all of our partners to do the same.



SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2022


STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.


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


-

select suitable accounting policies and then apply them consistently;

-

make judgements and accounting estimates that are reasonable and prudent;

-

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


The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors,  Haines Watts, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.


ON BEHALF OF THE BOARD:






J J Burton - Director



8 March 2024


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SKYBOUND WEALTH MANAGEMENT LIMITED



Opinion

We have audited the financial statements of Skybound Wealth Management Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 2022 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.


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.


In connection with our audit of the financial statements, 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 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.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SKYBOUND WEALTH MANAGEMENT LIMITED



Opinions on other matters 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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

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


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 Report of the Directors.


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.


Responsibilities of directors

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


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SKYBOUND WEALTH MANAGEMENT LIMITED



Auditors' 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 a Report of the Auditors 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:


We obtained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS102 - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the Companies Act 2006 relevant tax compliance regulations in the UK. and The Financial Conduct Authority 'FCA'.


We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management.


We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included:


- Challenging assumptions and judgements made by management in its significant accounting estimates;

- Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations;

- Confirming with management whether they have knowledge of any actual, suspected or illegal fraud;

- Evaluating whether there was evidence of bias by management that represents a risk of material misstatement due to fraud.


These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.


Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance with all laws and regulations.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SKYBOUND WEALTH MANAGEMENT LIMITED



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 a Report of the Auditors 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.





Martin Thomas FCCA (Senior Statutory Auditor)

for and on behalf of Haines Watts, Statutory Auditor

Chartered Accountants

The Lightbox

87 Castle Street

Reading

Berkshire

RG1 7SN


8 March 2024


SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2022


2022

2021



Notes

£

£


TURNOVER

4

4,631,979


4,213,069




Cost of sales

3,488,981


3,239,195



GROSS PROFIT

1,142,998


973,874




Administrative expenses

948,112


997,730



OPERATING PROFIT/(LOSS)

6

194,886


(23,856

)




Interest payable and similar expenses

8

2,209


572



PROFIT/(LOSS) BEFORE TAXATION

192,677


(24,428

)



Tax on profit/(loss)

9

11,815


-



PROFIT/(LOSS) FOR THE FINANCIAL

YEAR

180,862


(24,428

)



OTHER COMPREHENSIVE INCOME  


Foreign exchange gain/(loss)

(27,892

)

(1,863

)


Income tax relating to other

comprehensive income

-


-



OTHER COMPREHENSIVE INCOME

FOR THE YEAR, NET OF INCOME TAX

(27,892

)

(1,863

)


TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

152,970


(26,291

)



SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


BALANCE SHEET

31 DECEMBER 2022


2022

2021



Notes

£

£

£

£

FIXED ASSETS

Tangible assets

10

2,993


3,905




CURRENT ASSETS

Debtors

11

4,215,200


1,156,580



Cash at bank and in hand

53


4,750



4,215,253


1,161,330



CREDITORS

Amounts falling due within one year

12

3,747,808


886,029



NET CURRENT ASSETS

467,445


275,301



TOTAL ASSETS LESS CURRENT

LIABILITIES

470,438


279,206




CREDITORS

Amounts falling due after more than one

year

13

(497,448

)

(444,794

)



PROVISIONS FOR LIABILITIES

16

(9,823

)

(24,215

)


NET LIABILITIES

(36,833

)

(189,803

)



CAPITAL AND RESERVES

Called up share capital

17

100


100



Other reserves

18

(16,589

)

11,303



Retained earnings

18

(20,344

)

(201,206

)


SHAREHOLDERS' FUNDS

(36,833

)

(189,803

)



The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 8 March 2024 and were signed on its behalf by:






J J Burton - Director



SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2022


Called up



share

Retained

Other

Total


capital

earnings

reserves

equity



£

£

£

£

Balance at 1 January 2021

100


(176,778

)

13,166


(163,512

)



Changes in equity

Total comprehensive income

-


(24,428

)

(1,863

)

(26,291

)


Balance at 31 December 2021

100


(201,206

)

11,303


(189,803

)



Changes in equity

Total comprehensive income

-


180,862


(27,892

)

152,970



Balance at 31 December 2022

100


(20,344

)

(16,589

)

(36,833

)



SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2022


2022

2021



Notes

£

£

Cash flows from operating activities

Cash generated from operations

1

27,513


(95,412

)


Interest paid

(2,209

)

(572

)


Tax paid

-


2,450



Net cash from operating activities

25,304


(93,534

)



Cash flows from investing activities

Purchase of tangible fixed assets

(623

)

(2,924

)


Sale of tangible fixed assets

-


898



Net cash from investing activities

(623

)

(2,026

)



Increase/(decrease) in cash and cash equivalents

24,681


(95,560

)


Cash and cash equivalents at

beginning of year

2

(16,472

)

81,047



Effect of foreign exchange rate changes

(28,009

)

(1,959

)


Cash and cash equivalents at end of

year

2

(19,800

)

(16,472

)



SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2022



1.

RECONCILIATION OF PROFIT/(LOSS) FOR THE FINANCIAL YEAR TO CASH GENERATED

FROM OPERATIONS

2022

2021



£

£


Profit/(loss) for the financial year

180,862


(24,428

)



Depreciation charges

1,652


5,330




Loss on disposal of fixed assets

-


14,392




Finance costs

2,209


572




Taxation

11,815


-



196,538


(4,134

)



Increase in trade and other debtors

(3,058,620

)

(213,193

)



Increase in trade and other creditors

2,889,595


121,915




Cash generated from operations

27,513


(95,412

)



2.

CASH AND CASH EQUIVALENTS



The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:



Year ended 31 December 2022


31/12/22


1/1/22


£

£


Cash and cash equivalents

53


4,750




Bank overdrafts

(19,853

)

(21,222

)


(19,800

)

(16,472

)



Year ended 31 December 2021


31/12/21


1/1/21


£

£


Cash and cash equivalents

4,750


91,920




Bank overdrafts

(21,222

)

(10,873

)


(16,472

)

81,047





3.

ANALYSIS OF CHANGES IN NET DEBT



At 1/1/22

Cash flow

At 31/12/22


£

£

£


Net cash



Cash at bank and in hand

4,750


(4,697

)

53




Bank overdrafts

(21,222

)

1,369


(19,853

)


(16,472

)

(3,328

)

(19,800

)



Total

(16,472

)

(3,328

)

(19,800

)



SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022



1.

STATUTORY INFORMATION



Skybound Wealth Management Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.


The presentation currency of the financial statements is the Pound Sterling (£).


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.  



The financial statements have been prepared under the historical cost convention unless otherwise specific within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.



The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.



Going concern


The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the current economic climate, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of the current economic climate, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available including support of the group, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.



Turnover


Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.



Turnover, represents initial and recurring fees in relation to the valuation of assets under management. Initial fees are recognised on an accruals basis and recurring fees are recognised initially and adjusted for any valuation movements through the period.


SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2022



2.

ACCOUNTING POLICIES - continued



Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings-25% on cost
Computer equipment-33% on cost
Improvements to property-10% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.


Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, and loans to and from related parties.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assess at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Debtors
Short term debtors are measured at transaction price less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents
Cash is represented by cash in hand and deposits, with financial institutions repayable without penalty on notice of not more than 24 hours.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.


SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2022



2.

ACCOUNTING POLICIES - continued


Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.


Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.


Operating leases


Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.



Pension costs and other post-retirement benefits

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2022



3.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY


In the process of applying its accounting policies, the Company is required to make certain estimates, judgement, and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amount of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented. On an ongoing basis, the Company evaluates its estimates using historical experience and other reasonable methods.

Actual results may differ materially from the estimate, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The following paragraphs detail the estimates and judgements the Company believes to have the most significant impact on the annual results under FRS 102.

Turnover recognition and allowance for doubtful receivables
The Company recognises turnover generally at the time of delivery and when collection of the resulting receivable is reasonable assured. When the Company considers that the criteria for turnover recognition are not met for a transaction, turnover recognition is delayed until such time as collectability is reasonably assured. Payments received in advance of turnover recognition are recorded as deferred income. At each reporting date, the Company evaluates the recoverability of trade receivables and record allowances for doubtful receivables based on experience. These allowances are based on, amongst other things, a consideration of actual collection history. The actual level of receivable collected may differ from the estimated levels of recovery, which could impact operating results positively or negatively.

4.

TURNOVER



The turnover and profit (2021 - loss) before taxation are attributable to the one principal activity of the company.



An analysis of turnover by class of business is given below:


2022

2021



£

£


Initial and recurring fees

4,466,806


3,924,765




Group Management Income

165,173


288,304



4,631,979


4,213,069




5.

EMPLOYEES AND DIRECTORS

2022

2021



£

£


Wages and salaries

408,676


520,440




Social security costs

28,678


24,996




Other pension costs

4,262


4,083



441,616


549,519




SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2022



5.

EMPLOYEES AND DIRECTORS - continued



The average number of employees during the year was as follows:

2022

2021




Directors

1


2




Employees

8


11



9


13




2022

2021



£

£


Director's remuneration

119,770


102,713





The number of directors to whom retirement benefits were accruing was as follows:



Money purchase schemes

1


1




6.

OPERATING PROFIT/(LOSS)



The operating profit (2021 - operating loss) is stated after charging:


2022

2021



£

£


Other operating leases

23,635


48,963




Depreciation - owned assets

1,652


5,330




Loss on disposal of fixed assets

-


14,392




Foreign exchange differences

78,385


25,039




7.

AUDITORS' REMUNERATION

2022

2021



£

£


Fees payable to the company's auditors for the audit of the

company's financial statements

12,468


10,424




8.

INTEREST PAYABLE AND SIMILAR EXPENSES


2022

2021



£

£


Bank interest

2,209


572




SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2022



9.

TAXATION



Analysis of the tax charge


The tax charge on the profit for the year was as follows:

2022

2021



£

£


Current tax:


UK corporation tax

11,815


-




Tax on profit/(loss)

11,815


-





Reconciliation of total tax charge included in profit and loss


The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:


2022

2021



£

£


Profit/(loss) before tax

192,677


(24,428

)



Profit/(loss) multiplied by the standard rate of corporation tax in the

UK of 19% (2021 - 19%)  

36,609


(4,641

)




Effects of:


Expenses not deductible for tax purposes

15


562




Depreciation in excess of capital allowances

160


3,742




Utilisation of tax losses

(24,969

)

-




Tax loss c/fwd  

-


337




Total tax charge

11,815


-





Tax effects relating to effects of other comprehensive income



2022



Gross


Tax


Net



£

£

£


Foreign exchange gain/(loss)

(27,892

)

-


(27,892

)



2021



Gross


Tax


Net



£

£

£


Foreign exchange gain/(loss)

(1,863

)

-


(1,863

)



SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2022



10.

TANGIBLE FIXED ASSETS

Fixtures


Improvements

and

Computer


to property

fittings

equipment

Totals



£

£

£

£


COST


At 1 January 2022

720


11,038


1,377


13,135




Additions

-


623


-


623




Exchange differences

93


-


179


272




At 31 December 2022

813


11,661


1,556


14,030




DEPRECIATION


At 1 January 2022

72


8,108


1,050


9,230




Charge for year

79


1,404


169


1,652




Exchange differences

12


-


143


155




At 31 December 2022

163


9,512


1,362


11,037




NET BOOK VALUE


At 31 December 2022

650


2,149


194


2,993




At 31 December 2021

648


2,930


327


3,905




11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2022

2021



£

£


Trade debtors

44,894


242,104




Amounts owed by group undertakings

3,462,717


586,250




Other debtors

33,701


13,121




Tax

2,565


2,565




Prepayments and accrued income

671,323


312,540



4,215,200


1,156,580




12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2022

2021



£

£


Bank loans and overdrafts (see note 14)

19,853


21,222




Trade creditors

17,410


9,888




Amounts owed to group undertakings

3,055,700


542,888




Tax

11,815


-




Social security and other taxes

5,836


5,733




Other creditors

5,029


125,872




Accruals and deferred income

632,165


180,426



3,747,808


886,029




SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2022



13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE

YEAR


2022

2021



£

£


Other creditors

497,448


444,794




14.

LOANS



An analysis of the maturity of loans is given below:


2022

2021



£

£


Amounts falling due within one year or on demand:


Bank overdrafts

19,853


21,222




15.

LEASING AGREEMENTS



Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021



£

£


Within one year

11,440


11,860




Between one and five years

17,892


29,332



29,332


41,192




16.

PROVISIONS FOR LIABILITIES

2022

2021



£

£


Other provisions

9,823


24,215




17.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

2022

2021


value:


£

£


100

Ordinary

£1

100


100




SKYBOUND WEALTH MANAGEMENT LIMITED (REGISTERED NUMBER: 04479650)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2022



18.

RESERVES

Retained

Other


earnings

reserves

Totals



£

£

£



At 1 January 2022

(201,206

)

11,303


(189,903

)



Profit for the year

180,862


180,862




Foreign currency movements

-


(27,892

)

(27,892

)



At 31 December 2022

(20,344

)

(16,589

)

(36,933

)



The profit and loss account includes all current and prior year retained profits and losses.

19.

RELATED PARTY DISCLOSURES



The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.



Branch


During the year management charges to entities under common control totalled £148,839 (2021: £263,455).



During the year management charges from entities under common control totalled £3,189,647 (2021: £2,997,668).



At the year-end amounts due to entities under common control totalled £2,991,171 (2021: £435,138).



At the year-end amounts due from entities under common control totalled £2,801,948 (2021: £Nil).



UK


During the year management charges from entities under common control totalled £128,586 (2021: £137,471).



During the year management charges to entities under common control totalled £16,332 (2021: £19,059).



At the year-end amounts due to entities under common control totalled £561,976 (2021: £444,794).



At the year-end amounts owed from entities under common control totalled £660,769 (2021: £478,500).


20.

ULTIMATE CONTROLLING PARTY



At the year-end the immediate parent undertaking is Skybound Partners Limited. Skybound Partners Limited prepares consolidated financial statements which are available from 3rd Floor, 33 Burton Street, W1J 6QU.



At the year-end the ultimate controlling party is C Y Warren, by virtue of his shareholding in the Company's ultimate parent undertaking, Skybound Capital Limited, a company registered in the British Virgin Islands.