Company registration number 09506196 (England and Wales)
TURNER POPE INVESTMENTS (TPI) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TURNER POPE INVESTMENTS (TPI) LTD
COMPANY INFORMATION
Directors
B Turner
J D Pope
Company number
09506196
Registered office
29a Crown Street
Brentwood
Essex
CM14 4BA
Auditor
M J Bushell Audit LLP
8 High Street
Brentwood
Essex
CM14 4AB
TURNER POPE INVESTMENTS (TPI) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 25
TURNER POPE INVESTMENTS (TPI) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
Following a disappointing year in FY 2022-23, the AIM Market (where TPI conducts most of its business) saw a rebound from close to 4-year lows during the financial year. TPI was resilient in navigating adverse market conditions in H1 2023-24, rebounding in H2 2023-24 to complete one of its largest transactions to date in the final months of the financial year, concluding the year with a small operating loss.
Corporate Retainer fees are up 8.6% compared to FY 2022-23, whilst Corporate Commissions are slightly down, 5.2% YOY. When compared to the performance of FY 2022-23 it is apparent that the impact of external market pressures on TPI’s business model has stabilised and we remain hopeful that with the improving market sentiment, FY 2024-25 will facilitate P+L metric growth. The Directors continue to adopt their considered strategy in being increasingly selective over fundraising engagements and have ensured a similar cautious approach to the private clients they service.
TPI closed FY 2023-24 with a very robust balance sheet. Asset levels have been sustained, and the Company maintains a strong liquidity position ready to service all operating expenses and any debt. TPI does not require any support funding to maintain operations.
Following the headwinds encountered in FY 2022-23, FY 2023-24 represents a period of consolidation and stabilisation for TPI, establishing the foundation for TPI to grow both operationally and financially. The Directors are optimistic that a revival of the AIM Market may be on the horizon, with macroeconomic and geopolitical factors such as the easing of interest rates hopefully having the desired effect of attracting more risk seeking investors back to the market. Given TPI’s strong balance sheet and revised operational approach, the Directors are of the belief that TPI is in the optimal position to capitalise on a shift in market sentiment.
Principal risks and uncertainties
The Directors consider that the significant risks and uncertainties affecting the business are those concerned with regulatory changes, continued economic uncertainty and the recent change of government.
Key performance indicators
The key commercial indicators for the Company are twofold:
Placing agent engagements can be measured by assessing the proceeds due to TPI by way of commission. Revenue generated by Placing agent engagements decreased by 16.7% when compared to FY 2022-23. Throughout FY 2023-24 the Directors operated a conservative approach, the risk appetite of the Company was very much reflective of the broader market, with the reduction in private client revenue YOY being attributable to the reduced number of Placing agent engagements.
Regarding corporate retainer engagements, revenue generated has increased by 8.6% compared to FY 2022-23. This provides comfort in that while appetite for fundraises and IPO’s remains subdued, the Company is still able to retain/service its corporate client base, as well as attracting new retainer engagements to replace those corporate clients that disengage.
TURNER POPE INVESTMENTS (TPI) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Other information and explanations
Going Concern
On behalf of the board
Having reviewed Q1 2024-25, there are clear signs that market conditions are starting to improve alongside favorable macroeconomic events occurring such as inflation rates falling to target levels. Also, having made prudent decisions throughout FY 2023-24, such as moving certain investments to cash, the Directors believe that the Company’s favorable liquidity position should also help counter any unforeseen headwinds. Taking these changes into account we believe that FY 2024-25 will prove more fruitful than previous years. The Directors have reviewed their forecasts and consider that they have adequate resources to meet FCA capital requirements and future working capital requirements.
S172 Disclosure
The Company carries the names of the two Executive Directors, as such the TPI brand is critically important to them, and more specifically, the way in which TPI’s reputation and brand values are perceived by its key stakeholders, which comprise clients, staff, market participants and the Financial Conduct Authority (FCA).
The Directors objective is for the Company to maintain a reputation for excellent service to its clients, with staff development and training being considered a key aspect of maintaining a strong culture, reputation and performance.
The Company remains relatively small but engages in sustainable and environmentally friendly activities in the running of the business wherever possible, as well as being a supporter of numerous charities nationwide.
B Turner
Director
26 July 2024
TURNER POPE INVESTMENTS (TPI) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of stockbrokers.
Results and dividends
The results for the year are set out on page 9.
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 Turner
J D Pope
Financial instruments
The company uses various financial instruments which include cash balances and various other items, such as trade debtors and trade credits which arise directly from its operations. The main risks arising from the company's financial instruments are credit risk and liquidity risk. The directors review and agree policies for managing each of these risks, which are summarised below.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
The credit risk associated with trade debtors is considered to be low as the trade debtors are predominantly financial institutions and the debt relates to fees due to the company through acting as a financial intermediary for those institutions. There is always the risk that the customer will cancel their policy, which would result in trade debts being cancelled or amounts previously received requiring payment. However, the company's customer base is large and there is no reliance on a single customer base is large and there is no reliance on a single customer. As such the risk associated with the cancellation of policies is considered to be low.
Auditor
M J Bushell Audit LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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.
Going Concern
The directors have reviewed their forecast and consider hat they have adequate resources to meet FCA capital requirements and future working capital requirements.
TURNER POPE INVESTMENTS (TPI) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
B Turner
J D Pope
Director
Director
26 July 2024
TURNER POPE INVESTMENTS (TPI) LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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.
TURNER POPE INVESTMENTS (TPI) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNER POPE INVESTMENTS (TPI) LTD
- 6 -
Opinion
We have audited the financial statements of Turner Pope Investments (TPI) Ltd (the 'company') for the year ended 31 March 2024 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss 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.
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.
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:
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.
TURNER POPE INVESTMENTS (TPI) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNER POPE INVESTMENTS (TPI) LTD (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Management of controls
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Non-compliance laws and regulations
Enquiry of management, those charged with governance around actual and potential litigation and claims.
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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.
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.
TURNER POPE INVESTMENTS (TPI) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNER POPE INVESTMENTS (TPI) LTD (CONTINUED)
- 8 -
Corné von Wielligh ACA
Senior Statutory Auditor
For and on behalf of M J Bushell Audit LLP
30 July 2024
Chartered Accountants
Statutory Auditor
8 High Street
Brentwood
Essex
CM14 4AB
TURNER POPE INVESTMENTS (TPI) LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
2,436,334
2,628,778
Cost of sales
(243,812)
(378,456)
Gross profit
2,192,522
2,250,322
Administrative expenses
(2,283,465)
(2,512,177)
Operating loss
4
(90,943)
(261,855)
Interest receivable and similar income
7
7,051
52,089
Interest payable and similar expenses
8
(1,682)
Amounts written off investments
9
(657,618)
(1,843,040)
Loss before taxation
(743,192)
(2,052,806)
Tax on loss
10
252,520
365,338
Loss for the financial year
(490,672)
(1,687,468)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TURNER POPE INVESTMENTS (TPI) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
Loss for the year
(490,672)
(1,687,468)
Other comprehensive income
-
-
Total comprehensive income for the year
(490,672)
(1,687,468)
TURNER POPE INVESTMENTS (TPI) LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
139,347
167,162
Current assets
Debtors
14
984,446
732,946
Investments
15
1,682,125
2,849,971
Cash at bank and in hand
938,998
595,900
3,605,569
4,178,817
Creditors: amounts falling due within one year
16
(270,576)
(321,242)
Net current assets
3,334,993
3,857,575
Total assets less current liabilities
3,474,340
4,024,737
Creditors: amounts falling due after more than one year
17
(12,500)
(72,225)
Net assets
3,461,840
3,952,512
Capital and reserves
Called up share capital
21
70,001
70,001
Profit and loss reserves
3,391,839
3,882,511
Total equity
3,461,840
3,952,512
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 26 July 2024 and are signed on its behalf by:
B Turner
J D Pope
Director
Director
Company registration number 09506196 (England and Wales)
TURNER POPE INVESTMENTS (TPI) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
70,001
6,079,979
6,149,980
Year ended 31 March 2023:
Loss and total comprehensive income
-
(1,687,468)
(1,687,468)
Dividends
11
-
(510,000)
(510,000)
Balance at 31 March 2023
70,001
3,882,511
3,952,512
Year ended 31 March 2024:
Loss and total comprehensive income
-
(490,672)
(490,672)
Balance at 31 March 2024
70,001
3,391,839
3,461,840
TURNER POPE INVESTMENTS (TPI) LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
41,539
17,400
Interest paid
(1,682)
Income taxes refunded/(paid)
120,147
(988,037)
Net cash inflow/(outflow) from operating activities
160,004
(970,637)
Investing activities
Purchase of tangible fixed assets
(9,211)
(14,539)
Proceeds from disposal of investments
510,228
332,497
Repayment of loans
(315,923)
63,144
Interest received
7,051
569
Other income received from investments
51,520
Net cash generated from investing activities
192,145
433,191
Financing activities
Repayment of bank loans
(9,051)
(10,949)
Dividends paid
(510,000)
Net cash used in financing activities
(9,051)
(520,949)
Net increase/(decrease) in cash and cash equivalents
343,098
(1,058,395)
Cash and cash equivalents at beginning of year
595,900
1,654,295
Cash and cash equivalents at end of year
938,998
595,900
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information
Turner Pope Investments (TPI) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 29a Crown Street, Brentwood, Essex, CM14 4BA.
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 is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
15% reducing balance
Fixtures and fittings
15% reducing balance
Computers
33% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Corporate Broking Fees (Retainers)
596,069
537,841
Commissions
1,840,265
2,090,937
2,436,334
2,628,778
2024
2023
£
£
Other revenue
Interest income
7,051
52,089
4
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Exchange (gains)/losses
463
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
17,355
Depreciation of owned tangible fixed assets
37,026
45,023
Operating lease charges
66,197
116,851
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
12
14
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,015,659
947,962
Social security costs
126,784
118,347
Pension costs
12,611
15,637
1,155,054
1,081,946
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
250,000
34,775
Company pension contributions to defined contribution schemes
1,321
669
251,321
35,444
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
125,000
17,388
Company pension contributions to defined contribution schemes
1,321
669
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,823
569
Other interest income
4,228
Total interest revenue
7,051
569
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
51,520
Total income
7,051
52,089
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Interest receivable and similar income
(Continued)
- 20 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,823
569
Interest on financial assets measured at fair value through profit or loss
51,520
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,649
-
Other finance costs:
Interest on finance leases and hire purchase contracts
33
-
1,682
9
Amounts written off investments
2024
2023
£
£
Loss on disposal of financial assets held at cost
(360,719)
(1,631,766)
Loss on disposal of investments held at fair value
(296,899)
(211,274)
(657,618)
(1,843,040)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(51,337)
Adjustments in respect of prior periods
(89,367)
Total current tax
(89,367)
(51,337)
Deferred tax
Origination and reversal of timing differences
(163,153)
(314,001)
Total tax credit
(252,520)
(365,338)
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 21 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(743,192)
(2,052,806)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(141,206)
(390,033)
Tax effect of expenses that are not deductible in determining taxable profit
94,797
25,524
Unutilised tax losses carried forward
48,121
Change in unrecognised deferred tax assets
(163,153)
Adjustments in respect of prior years
(89,367)
Depreciation on assets not qualifying for tax allowances
(1,712)
(829)
Taxation credit for the year
(252,520)
(365,338)
11
Dividends
2024
2023
£
£
Final paid
510,000
12
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2023
69,510
84,763
131,181
285,454
Additions
470
8,741
9,211
At 31 March 2024
69,510
85,233
139,922
294,665
Depreciation and impairment
At 1 April 2023
15,303
27,428
75,561
118,292
Depreciation charged in the year
8,131
8,665
20,230
37,026
At 31 March 2024
23,434
36,093
95,791
155,318
Carrying amount
At 31 March 2024
46,076
49,140
44,131
139,347
At 31 March 2023
54,207
57,335
55,620
167,162
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,511,528
2,719,374
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
97,390
53,694
Corporation tax recoverable
25,438
56,218
Other debtors
442,573
436,109
Prepayments and accrued income
150,488
81,521
715,889
627,542
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 19)
268,557
105,404
Total debtors
984,446
732,946
15
Current asset investments
2024
2023
£
£
Unlisted investments
1,511,528
2,719,374
Other investments
170,597
130,597
1,682,125
2,849,971
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
10,000
10,000
Trade creditors
85,778
33,586
Taxation and social security
68,471
35,933
Accruals and deferred income
106,327
241,723
270,576
321,242
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
12,500
21,551
Other creditors
50,674
12,500
72,225
18
Loans and overdrafts
2024
2023
£
£
Bank loans
22,500
31,551
Payable within one year
10,000
10,000
Payable after one year
12,500
21,551
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(23,318)
105,404
Tax losses
63,317
-
Revaluations
228,310
-
Pension creditor
248
-
268,557
105,404
2024
Movements in the year:
£
Asset at 1 April 2023
(105,404)
Credit to profit or loss
(163,153)
Asset at 31 March 2024
(268,557)
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,611
15,637
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
70,001
70,001
70,001
70,001
22
Operating lease commitments
Lessee
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:
2024
2023
£
£
Within one year
125,330
126,660
Between two and five years
8,515
31,665
133,845
158,325
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Management fees
PR & Marketing
2024
2023
2024
2023
£
£
£
£
Other related parties
160,000
160,000
140,000
140,000
TURNER POPE INVESTMENTS (TPI) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
24
Directors' transactions
Dividends totalling £0 (2023 - £510,000) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors loan
2.50
2,586
155,854
2,496
(2,500)
158,436
Directors loan
2.50
2,586
155,669
1,732
(2,500)
157,487
5,172
311,523
4,228
(5,000)
315,923
The overdrawn directors loan accounts were fully repaid within 9 months of the year end.
25
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
595,900
343,098
938,998
Borrowings excluding overdrafts
(31,551)
9,051
(22,500)
564,349
352,149
916,498
26
Cash generated from operations
2024
2023
£
£
Loss for the year after tax
(490,672)
(1,687,467)
Adjustments for:
Taxation credited
(252,520)
(365,338)
Finance costs
1,682
Investment income
(7,051)
(52,089)
Depreciation and impairment of tangible fixed assets
37,026
45,023
Other gains and losses
657,618
1,843,040
Movements in working capital:
Decrease in debtors
196,796
204,824
(Decrease)/increase in creditors
(101,340)
29,407
Cash generated from operations
41,539
17,400
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