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COMPANY REGISTRATION NUMBER: 11101740
Kendar Advisors Ltd
Financial Statements
31 December 2023
Kendar Advisors Ltd
Financial Statements
Year ended 31 December 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the member
6
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12
Kendar Advisors Ltd
Officers and Professional Advisers
The board of directors
E de Merlis
J M Choblet
Registered office
12 Markham Street
London
England
SW3 3NP
Auditor
Shipleys LLP
Chartered accountants & statutory auditor
10 Orange Street
Haymarket
London
WC2H 7DQ
Kendar Advisors Ltd
Strategic Report
Year ended 31 December 2023
Business review and Future Developments The principal activity of the company continues to be that of investment management. The directors are pleased to report a successful trading year, resulting in turnover of £420,814 and pre-tax profits of £64,527 (2022: £239,401). The business has performed consistently well over the past years, despite long periods of extreme economic and market uncertainty brought about by the war in Ukraine, changes in interest rates policies from global central banks, and more than ever changes in regulations. Kendar has been able to adapt swiftly to the changes in working practices required to enable it to meet client needs and to continue its normal trading pattern throughout and has strengthened its compliance and risks procedures. The business remains in a strong position going forward as a result. Kendar continues to seek to expand but will do so in an appropriate manner so that any additional client will not jeopardise the service to existing clients. Principal risks and uncertainties The principal risks and uncertainties that arise in the conduct of the company's business are kept under regular review by the directors. The main risks and uncertainties are considered to be those surrounding technology and the directors ensure that sufficient safeguards are in place to prevent a failure of critical software and ensure regular back up and safe storage of key data. Financial Risk Management Objectives and Policies The company is exposed to various financial risks that arise as a normal part of its trading activities. The main such risks are considered to be cash flow and foreign currency exposure. The company's major financial assets are its trade debts and cash at bank. The efficiency of collection of the trade debts and the extension of credit to those customers are carefully controlled in order to minimise cash flow and credit risks. Cash balances are placed with appropriate banks where the credit risk is considered negligible. Foreign currency exposure risk arises due to the fact that a large volume of transactions, mostly revenues, are invoiced in USD. The risk is that the foreign currency will weaken against the pound and the GBP value of these foreign currency assets will diminish. The directors mitigate this risk by way of a robust debt collection process and by regular conversion of foreign currency bank balances to GBP. Section 172(1) Companies Act 2006 The directors confirm that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 December 2023. The directors regularly review the performance of the business, together with the financial results, cash flow needs and opportunities for growth. They discuss market and economic conditions which could have an impact on the future performance of the company. All decisions made by the directors consider the long-term consequences they may have on the business, its activities and the company's relationships with all other stakeholders. All decisions are made in good faith and intend to maintain high standards of business conduct and maintain a good reputation. The company maintains a good relationship with its customers and suppliers and maintains the belief that customer satisfaction is paramount to future success.
This report was approved by the board of directors on 16 April 2024 and signed on behalf of the board by:
E de Merlis
Director
Kendar Advisors Ltd
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Principal activities
The principal activity of the company during the year was that of providing investment management services.
Directors
The directors who served the company during the year were as follows:
E de Merlis
J M Choblet
Dividends
Particulars of recommended dividends are detailed in note 10 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 judgments and accounting estimates that are reasonable and prudent. 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 16 April 2024 and signed on behalf of the board by:
E de Merlis
Director
Kendar Advisors Ltd
Independent Auditor's Report to the Member of Kendar Advisors Ltd
Year ended 31 December 2023
Opinion
We have audited the financial statements of Kendar Advisors Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report 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 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: - 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 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the Company's business, controls, legal and regulatory frameworks, laws and regulations and assessed the susceptibility of the Company's financial statements to material misstatement through irregularities, including fraud. Based on this understanding we designed our audit procedures to detecting irregularities, including fraud. Testing undertaken included making enquiries of management; journal entry testing; reviewing bank letters and the website of the regulatory body (FCA); reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. 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 auditor’s report. Use of our report
This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Richardson
(Senior Statutory Auditor)
For and on behalf of
Shipleys LLP
Chartered accountants & statutory auditor
10 Orange Street
Haymarket
London
WC2H 7DQ
17 April 2024
Kendar Advisors Ltd
Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
420,814
540,376
Cost of sales
25,245
26,455
---------
---------
Gross profit
395,569
513,921
Administrative expenses
317,903
251,313
Other operating income
5
( 12,756)
( 23,207)
---------
---------
Operating profit
6
64,910
239,401
Interest payable and similar expenses
8
384
---------
---------
Profit before taxation
64,526
239,401
Tax on profit
9
17,769
47,171
--------
---------
Profit for the financial year and total comprehensive income
46,757
192,230
--------
---------
Dividends paid and payable
10
( 85,000)
( 140,000)
Retained earnings at the start of the year
175,194
122,964
---------
---------
Retained earnings at the end of the year
136,951
175,194
---------
---------
All the activities of the company are from continuing operations.
Kendar Advisors Ltd
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
11
924
1,505
Current assets
Debtors
12
114,075
201,023
Cash at bank and in hand
137,327
142,230
---------
---------
251,402
343,253
Creditors: amounts falling due within one year
13
52,875
107,064
---------
---------
Net current assets
198,527
236,189
---------
---------
Total assets less current liabilities
199,451
237,694
---------
---------
Net assets
199,451
237,694
---------
---------
Capital and reserves
Called up share capital
14
62,500
62,500
Profit and loss account
15
136,951
175,194
---------
---------
Shareholder funds
199,451
237,694
---------
---------
These financial statements were approved by the board of directors and authorised for issue on 16 April 2024 , and are signed on behalf of the board by:
E de Merlis
Director
Company registration number: 11101740
Kendar Advisors Ltd
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
46,757
192,230
Adjustments for:
Depreciation of tangible assets
581
1,349
Interest payable and similar expenses
384
Tax on profit
17,769
47,171
Accrued expenses/(income)
16,213
( 39,515)
Changes in:
Trade and other debtors
42,076
( 33,957)
Trade and other creditors
9,715
( 285)
---------
---------
Cash generated from operations
133,495
166,993
Interest paid
( 384)
Tax paid
( 47,170)
( 43,194)
---------
---------
Net cash from operating activities
85,941
123,799
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 1,742)
---------
---------
Net cash used in investing activities
( 1,742)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
( 5,844)
( 735)
Dividends paid
( 85,000)
( 140,000)
---------
---------
Net cash used in financing activities
( 90,844)
( 140,735)
---------
---------
Net decrease in cash and cash equivalents
( 4,903)
( 18,678)
Cash and cash equivalents at beginning of year
142,230
160,908
---------
---------
Cash and cash equivalents at end of year
137,327
142,230
---------
---------
Kendar Advisors Ltd
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 12 Markham Street, London, SW3 3NP, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have reviewed the trading and financial position of the company, considering all matters assessed as relevant and conclude that the company remains a going concern as it is able to continue with its normal pattern of trading and has sufficient financial resources to allow it to meet its trading obligations for the foreseeable future, being not less than one year from the date of approval of these financial statements. As such, the financial statements are prepared on a going concern basis.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for investment portfolio management services rendered, stated net of discounts and of Value Added Tax. Revenues from investment portfolio management services rendered are measured and invoiced in accordance with contractual terms.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Office equipment
-
over 3 years straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
420,814
540,376
---------
---------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Other operating income
( 12,756)
( 23,207)
--------
--------
Other operating income reports the recognised (loss)/gain on short term investments during the reporting period.
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
581
1,349
Foreign exchange differences
4,097
( 13,614)
-------
--------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
3,750
3,750
-------
-------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
4,069
3,953
-------
-------
8. Interest payable and similar expenses
2023
2022
£
£
Other interest payable and similar charges
384
----
----
9. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
14,911
47,171
Adjustments in respect of prior periods
2,858
--------
--------
Total current tax
17,769
47,171
--------
--------
--------
--------
Tax on profit
17,769
47,171
--------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
64,526
239,401
--------
---------
Profit on ordinary activities by rate of tax
16,132
45,486
Adjustment to tax charge in respect of prior periods
2,858
( 25)
Effect of expenses not deductible for tax purposes
1,704
1,785
Effect of capital allowances and depreciation
( 145)
( 75)
Effect of changes in tax rates and marginal relief
( 2,780)
--------
---------
Tax on profit
17,769
47,171
--------
---------
10. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
85,000
140,000
--------
---------
11. Tangible assets
Office equipment
£
Cost
At 1 January 2023 and 31 December 2023
6,560
-------
Depreciation
At 1 January 2023
5,055
Charge for the year
581
-------
At 31 December 2023
5,636
-------
Carrying amount
At 31 December 2023
924
-------
At 31 December 2022
1,505
-------
12. Debtors
2023
2022
£
£
Prepayments and accrued income
96,265
185,457
Other debtors
17,810
15,566
---------
---------
114,075
201,023
---------
---------
13. Creditors: amounts falling due within one year
2023
2022
£
£
Accruals and deferred income
12,920
41,579
Corporation tax
17,794
47,195
Social security and other taxes
13,494
3,779
Director loan accounts
8,667
14,511
--------
---------
52,875
107,064
--------
---------
14. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
62,500
62,500
62,500
62,500
--------
--------
--------
--------
The ordinary shares in issue have full rights in the company in respect of voting, dividends and distributions.
15. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
16. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
142,230
(4,903)
137,327
Debt due within one year
(14,511)
5,844
(8,667)
---------
-------
---------
127,719
941
128,660
---------
-------
---------
17. Directors' advances, credits and guarantees
Throughout the year the company was indebted to the director in respect of a short term advance. The balance to be repaid at the year end was £8,667 (2022: £14,511). The advance is interest free and repayable on demand.
18. Related party transactions
There were no related party transactions or balances that require disclosure in accordance with FRS 102.
19. Controlling party
The company remains under the control of the director and shareholder Etienne de Merlis .