Company Registration No. 08647418 (England and Wales)
EQUITAS CAPITAL PARTNERS LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EQUITAS CAPITAL PARTNERS LIMITED
COMPANY INFORMATION
Directors
Mr S J Keane
Mr J B M Thornton
Mr M R J Lawrie
Company number
08647418
Registered office
One New Bailey
4 Stanley Street
Manchester
M3 5JL
Auditor
Bishops Audit Limited
1 Croft Court
Plumpton Close
Whitehills Business Park
Blackpool
Lancashire
FY4 5PR
EQUITAS CAPITAL PARTNERS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
EQUITAS CAPITAL PARTNERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Benchmark International is a lower/mid-market mergers and acquisitions (M&A) firm that manages sell-side exclusive mandates across three continents: North America, Europe, and Africa. Our network includes over 380 professionals based in 14 offices. We are industry-agnostic, and our global reach has facilitated transactions with acquirers worldwide, resulting in 227 transactions closed in 2023, many of which were cross-border.

The group has designed and developed "Fingerprint" - a unique and market-leading exit strategy solution tailored specifically for entrepreneurs. Combining extensive industry-specific expertise, local market knowledge, and robust business intelligence and selling techniques, "Fingerprint" aims to achieve a wide range of exit strategies to meet the individual needs of our clients.

Benchmark International has established a strong market position, renowned for its exemplary reputation, and has distinguished itself as one of the leading sell-side exclusive M&A firms worldwide. Our commitment to innovation and competitiveness is evident through our investment in cutting-edge technologies and resources to enhance operations.

Equitas Capital Partners Limited, trading as Benchmark International, is headquartered in Manchester, England, and serves as the parent company of subsidiaries in the UK, Ireland, Germany, the Netherlands, and South Africa, representing approximately 33% of our global business. The remaining 67% is generated in the North American markets. Transactions typically range from £2 million to £250 million in value and span various specialist sectors.

Enclosed with these accounts are the audited financial statements for the year ended December 2023, covering our operations in Europe and Africa. These statements indicate that Benchmark International had a successful year, with strong revenue growth and profitability. This success mirrors that of our North American counterpart, with revenues exceeding $50 million (USD) and an EBITDA over $25 million (USD). The management team has demonstrated strong leadership by implementing effective growth strategies, managing risks, and fostering positive relationships with stakeholders. They are ambitious and eager to further enhance the business model and capitalise on the abundant opportunities ahead.

However, like all M&A firms, Benchmark International may face challenges in the future, such as increased competition, regulatory changes, and economic uncertainty. As the industry evolves, the company will need to remain vigilant and adaptable to changes in the business environment, as well as identify and seize new opportunities for growth and expansion.

Overall, Benchmark International has demonstrated impressive performance and management, with a commitment to growth, innovation, and its workforce, while continually seeking areas for improvement.

 

 

 

 

EQUITAS CAPITAL PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

Benchmark International operates in a dynamic and rapidly evolving industry, where numerous risks and uncertainties could impact financial performance and reputation. One of the key risks is the potential for a global economic downturn, which could reduce demand for our sell-side services and negatively impact revenue growth. Moreover, the success of our sell-side services is closely tied to the performance of financial markets, which are subject to volatility and fluctuations.

We also face operational risks, including errors or misconduct in the delivery of our services and cybersecurity threats that could compromise confidential client information.

Technological disruption presents another significant uncertainty. Emerging technologies, such as blockchain and artificial intelligence, could fundamentally change how financial services are delivered, creating new competitors for Benchmark International.

To mitigate these risks and uncertainties, Benchmark International has implemented several measures, including robust risk management processes, investment in innovative technologies, and a commitment to regulatory compliance. We also strive to maintain strong relationships with clients and stakeholders while staying informed about market trends and emerging risks.

 

Development and performance

Benchmark International has achieved remarkable progress over the past year, emphasising its expansion into new regions. The company completed a record number of transactions, including several high-profile deals, solidifying its position as a prominent player in the lower/mid-market M&A sector.

Geographically, Benchmark International has made significant inroads into key markets such as the UK, Ireland, Germany, and South Africa, and has recently opened a new office in the Netherlands. Additionally, the firm has heavily invested in technology and resources to boost operational efficiency and enhance the customer experience.

 

Key performance indicators

With the Covid-19 pandemic behind us, Benchmark International is demonstrating consistent year-on-year growth. The company assesses its performance using a range of key performance indicators (KPIs) closely monitored by the management team. These KPIs include revenue growth, profit margin, customer satisfaction, employee satisfaction, and market share.

Over the past three years, Benchmark International's revenue trends have demonstrated resilience and robust growth, despite the economic challenges faced since the pandemic.

 

Outlook 2023

Reflecting on the past year, 2023 marked another significant chapter in the journey of Benchmark International. Despite facing various hurdles, particularly unfavourable economic headwinds, we navigated these challenges and achieved another record-breaking year. This accomplishment is even more noteworthy given the downturn in the broader M&A market.

Throughout 2023, the steadfast dedication of our Deal Origination team, the robustness of our Transaction Portfolio model, the introduction of new innovations, and our unwavering drive for success were critical in overcoming these obstacles. Embracing unity, collaboration, and acknowledging both our strengths and weaknesses is paramount. Accountability and professionalism are the cornerstones of our success.

Looking ahead, the future holds boundless opportunities for Benchmark International.

.

EQUITAS CAPITAL PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Other information and explanations

In addition to the above, it is important to note that Benchmark International places a strong emphasis on corporate social responsibility (CSR) and sustainability. The company is committed to operating in an ethical and sustainable manner and has implemented a range of initiatives to reduce its environmental impact and support local communities.

These initiatives include reducing waste and energy consumption, supporting local charities and community projects, and promoting diversity and inclusion within the workforce. Benchmark International believes that by operating in a socially responsible manner, it can benefit the wider community and enhance its reputation and long-term success.

 

On behalf of the board

Mr J B M Thornton
Director
24 July 2024
EQUITAS CAPITAL PARTNERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company and group continued to be that of a Company Sales Specialist.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £2,500,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S J Keane
Mr J B M Thornton
Mr M R J Lawrie
Research and development

There have been no research & development activities in the period.

Post reporting date events

There have been no significant post balance sheet events.

Future developments

Please see detailed review of the business outlook in the strategic report.

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 auditor of the company 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 auditor of the company is aware of that information.

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
Mr J B M Thornton
Director
24 July 2024
EQUITAS CAPITAL PARTNERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

EQUITAS CAPITAL PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EQUITAS CAPITAL PARTNERS LIMITED
- 6 -
Opinion

We have audited the financial statements of Equitas Capital Partners Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 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:

EQUITAS CAPITAL PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EQUITAS CAPITAL PARTNERS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent 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.

- Enquiry of management around actual and potential litigation and claims.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- 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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

EQUITAS CAPITAL PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EQUITAS CAPITAL PARTNERS LIMITED
- 8 -
David Evans BA FCA (Senior Statutory Auditor)
For and on behalf of Bishops Audit Limited
24 July 2024
Chartered Accountants
Statutory Auditor
1 Croft Court
Plumpton Close
Whitehills Business Park
Blackpool
Lancashire
FY4 5PR
EQUITAS CAPITAL PARTNERS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
18,779,378
14,610,994
Cost of sales
(8,579)
(12,343)
Gross profit
18,770,799
14,598,651
Distribution costs
(469,303)
(88,333)
Administrative expenses
(13,122,858)
(10,627,637)
Other operating income
43,799
12,764
Operating profit
4
5,222,437
3,895,445
Interest receivable and similar income
7
61,739
39,609
Interest payable and similar expenses
8
(10,657)
(219)
Amounts written off investments
9
(5,119)
-
Profit before taxation
5,268,400
3,934,835
Tax on profit
10
(1,131,115)
(916,560)
Profit for the financial year
4,137,285
3,018,275
Profit for the financial year is attributable to:
- Owners of the parent company
4,155,161
2,844,104
- Non-controlling interests
(17,876)
174,171
4,137,285
3,018,275
EQUITAS CAPITAL PARTNERS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
4,137,285
3,018,275
Other comprehensive income
Currency translation loss arising in the year
(30,898)
(23,629)
Total comprehensive income for the year
4,106,387
2,994,646
Total comprehensive income for the year is attributable to:
- Owners of the parent company
4,124,263
2,820,475
- Non-controlling interests
(17,876)
174,171
4,106,387
2,994,646
EQUITAS CAPITAL PARTNERS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
14,026
18,351
Tangible assets
13
882,700
548,892
896,726
567,243
Current assets
Debtors
16
676,362
753,293
Cash at bank and in hand
5,632,863
4,229,262
6,309,225
4,982,555
Creditors: amounts falling due within one year
17
(1,382,463)
(1,167,820)
Net current assets
4,926,762
3,814,735
Total assets less current liabilities
5,823,488
4,381,978
Provisions for liabilities
Deferred tax liability
19
13,153
19,528
(13,153)
(19,528)
Net assets
5,810,335
4,362,450
Capital and reserves
Called up share capital
21
200
200
Other reserves
(140,399)
(109,501)
Profit and loss reserves
5,909,684
4,254,523
Equity attributable to owners of the parent company
5,769,485
4,145,222
Non-controlling interests
40,850
217,228
5,810,335
4,362,450

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
24 July 2024
Mr J B M Thornton
Director
Company registration number 08647418 (England and Wales)
EQUITAS CAPITAL PARTNERS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
113,027
181,653
Investments
14
324,266
324,266
437,293
505,919
Current assets
Debtors
16
2,507,395
2,341,817
Cash at bank and in hand
2,002,885
1,007,467
4,510,280
3,349,284
Creditors: amounts falling due within one year
17
(314,143)
(287,204)
Net current assets
4,196,137
3,062,080
Total assets less current liabilities
4,633,430
3,567,999
Provisions for liabilities
Deferred tax liability
19
16,159
22,429
(16,159)
(22,429)
Net assets
4,617,271
3,545,570
Capital and reserves
Called up share capital
21
200
200
Profit and loss reserves
4,617,071
3,545,370
Total equity
4,617,271
3,545,570

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,571,702 (2022 - £3,958,447 profit).

The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
24 July 2024
Mr J B M Thornton
Director
Company registration number 08647418 (England and Wales)
EQUITAS CAPITAL PARTNERS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Currency translation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
200
(85,872)
4,236,993
4,151,321
77,587
4,228,908
Year ended 31 December 2022:
Profit for the year
-
-
2,844,104
2,844,104
174,171
3,018,275
Other comprehensive income:
Currency translation differences
-
(23,629)
-
0
(23,629)
-
(23,629)
Total comprehensive income
-
(23,629)
2,844,104
2,820,475
174,171
2,994,646
Dividends
11
-
-
(2,950,000)
(2,950,000)
-
(2,950,000)
Disposal of shares in subsidiary to non-controlling interest
-
-
123,426
123,426
(34,530)
88,896
Balance at 31 December 2022
200
(109,501)
4,254,523
4,145,222
217,228
4,362,450
Year ended 31 December 2023:
Profit for the year
-
-
4,155,161
4,155,161
(17,876)
4,137,285
Other comprehensive income:
Currency translation differences
-
(30,898)
-
0
(30,898)
-
(30,898)
Total comprehensive income
-
(30,898)
4,155,161
4,124,263
(17,876)
4,106,387
Dividends
11
-
-
(2,500,000)
(2,500,000)
(158,502)
(2,658,502)
Balance at 31 December 2023
200
(140,399)
5,909,684
5,769,485
40,850
5,810,335
EQUITAS CAPITAL PARTNERS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
200
2,536,923
2,537,123
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
3,958,447
3,958,447
Dividends
11
-
(2,950,000)
(2,950,000)
Balance at 31 December 2022
200
3,545,370
3,545,570
Year ended 31 December 2023:
Profit and total comprehensive income
-
3,571,701
3,571,701
Dividends
11
-
(2,500,000)
(2,500,000)
Balance at 31 December 2023
200
4,617,071
4,617,271
EQUITAS CAPITAL PARTNERS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
5,981,229
4,024,919
Interest paid
(10,657)
(219)
Income taxes paid
(1,366,818)
(1,110,130)
Net cash inflow from operating activities
4,603,754
2,914,570
Investing activities
Purchase of intangible assets
-
(20,020)
Proceeds from disposal of intangibles
(1,914)
-
Purchase of tangible fixed assets
(680,970)
(289,486)
Proceeds from disposal of tangible fixed assets
116,804
-
Net movement in financial assets
-
99,807
Repayment of loans
(5,143)
-
Interest received
61,739
39,609
Net cash used in investing activities
(509,484)
(170,090)
Financing activities
Payment of finance leases obligations
-
(592)
Disposal of shares in subsidiary to non-controlling interest
-
88,896
Dividends paid to equity shareholders
(2,500,000)
(2,950,000)
Dividends paid to non-controlling interests
(158,502)
-
0
Net cash used in financing activities
(2,658,502)
(2,861,696)
Net increase/(decrease) in cash and cash equivalents
1,435,768
(117,216)
Cash and cash equivalents at beginning of year
4,227,245
4,368,090
Effect of foreign exchange rates
(30,898)
(23,629)
Cash and cash equivalents at end of year
5,632,115
4,227,245
Relating to:
Cash at bank and in hand
5,632,863
4,229,262
Bank overdrafts included in creditors payable within one year
(748)
(2,017)
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Equitas Capital Partners Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is One New Bailey, 4 Stanley Street, Manchester, M3 5JL.

 

The group consists of Equitas Capital Partners Limited and all of its subsidiaries.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Equitas Capital Partners Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

 

Revenue is recognised in two stages. First being a non-refundable initial fee upon agreeing contract terms with a client, at which point the risk and reward is transferred to the client. The second stage being a fee on completion of sale of shares on behalf of the client.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
20% straight line
1.8
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.

EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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
10% - 25% straighe line
Fixtures and fittings
25% straight line
Computers
33% straight line
Motor vehicles
20% straight line

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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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.

EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
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 leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Business transactions
18,779,378
14,610,994
2023
2022
£
£
Turnover analysed by geographical market
South Africa
2,242,977
2,277,775
Republic of Ireland
3,141,862
2,076,237
United Kingdom
11,077,426
9,832,519
Germany
2,317,113
424,463
18,779,378
14,610,994
2023
2022
£
£
Other revenue
Interest income
61,739
39,609
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
135,901
(61,453)
Fees payable to the group's auditor for the audit of the group's financial statements
20,000
20,000
Depreciation of owned tangible fixed assets
227,107
209,288
Loss on disposal of tangible fixed assets
3,251
431
Amortisation of intangible assets
4,325
14,537
Loss on disposal of intangible assets
1,914
-
Operating lease charges
465,223
353,602
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
192
172
-
0
-
0
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,241,066
6,214,737
-
0
-
0
Social security costs
790,782
641,574
-
-
Pension costs
220,962
217,706
-
0
-
0
8,252,810
7,074,017
-
0
-
0

Directors' remuneration was paid in full by subsidiary companies. No director received any remuneration from the parent.

6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
223,300
201,700
Company pension contributions to defined contribution schemes
18,080
18,080
241,380
219,780
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
117,150
107,350
Company pension contributions to defined contribution schemes
9,040
9,040
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
61,696
33,371
Other interest income
43
6,238
Total income
61,739
39,609
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
8
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
68
-
Other interest
10,589
219
Total finance costs
10,657
219
9
Amounts written off investments
2023
2022
£
£
Amounts written off current loans
(5,119)
-
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
858,381
671,575
Foreign current tax on profits for the current period
280,618
261,297
Total current tax
1,138,999
932,872
Deferred tax
Origination and reversal of timing differences
(7,884)
(16,312)
Total tax charge
1,131,115
916,560
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 25 -

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

2023
2022
£
£
Profit before taxation
5,268,400
3,934,835
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,239,128
747,619
Tax effect of expenses that are not deductible in determining taxable profit
24,136
11,074
Unutilised tax losses carried forward
61,632
136,383
Permanent capital allowances in excess of depreciation
(1,663)
-
0
Other permanent differences
-
0
39,652
Effect of overseas tax rates
(202,617)
(14,985)
Deferred tax adjustments in respect of prior years
10,499
90
Super-deduction
-
0
(1,953)
Other differences
-
0
(1,320)
Taxation charge
1,131,115
916,560
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
2,500,000
2,950,000
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
715,343
20,020
735,363
Amortisation and impairment
At 1 January 2023
715,343
1,669
717,012
Amortisation charged for the year
-
0
4,325
4,325
At 31 December 2023
715,343
5,994
721,337
Carrying amount
At 31 December 2023
-
0
14,026
14,026
At 31 December 2022
-
0
18,351
18,351
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
13
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
192,276
959,434
600,485
13,202
1,765,397
Additions
284,243
299,567
97,160
-
0
680,970
Disposals
(23,282)
(56,858)
(39,975)
(12,231)
(132,346)
At 31 December 2023
453,237
1,202,143
657,670
971
2,314,021
Depreciation and impairment
At 1 January 2023
76,756
700,298
436,329
3,122
1,216,505
Depreciation charged in the year
34,411
114,687
76,174
1,835
227,107
Eliminated in respect of disposals
(3,493)
(3,892)
(299)
(4,607)
(12,291)
At 31 December 2023
107,674
811,093
512,204
350
1,431,321
Carrying amount
At 31 December 2023
345,563
391,050
145,466
621
882,700
At 31 December 2022
115,520
259,136
164,156
10,080
548,892
Company
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
72,760
237,260
86,907
396,927
Additions
-
0
-
0
24,259
24,259
At 31 December 2023
72,760
237,260
111,166
421,186
Depreciation and impairment
At 1 January 2023
16,977
138,402
59,895
215,274
Depreciation charged in the year
7,276
59,314
26,295
92,885
At 31 December 2023
24,253
197,716
86,190
308,159
Carrying amount
At 31 December 2023
48,507
39,544
24,976
113,027
At 31 December 2022
55,783
98,858
27,012
181,653
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
324,266
324,266
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
324,266
Carrying amount
At 31 December 2023
324,266
At 31 December 2022
324,266
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Benchmark International Capital Partners Limited
One New Bailey, 4 Stanley Street, Manchester, United Kingdom M3 5JL
Ordinary
100.00
Benchmark International CSS Transactions Limited
One New Bailey, 4 Stanley Street, Manchester, United Kingdom M3 5JL
Ordinary
100.00
Benchmark International CSS ZA (PTY) Limited
South Africa
Ordinary
52.00
Benchmark International CSS IE Limited
Republic of Ireland
Ordinary
100.00
Benchmark International GmbH
Germany
Ordinary
100.00
Benchmark International CSS GmbH
Germany
Ordinary
90.00
Benchmark International B.V
Netherlands
Ordinary
100.00

The new subsidiary Benchmark International B.V was incorporated in October 2023. To the reporting period 31st December 2023 the company was dormant, with trade commencing in January 2024.

EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
119,347
136,535
50,537
42,416
Corporation tax recoverable
37,802
-
0
5,666
-
0
Amounts owed by group undertakings
-
-
2,364,976
2,140,061
Other debtors
154,417
216,795
-
0
-
0
Prepayments and accrued income
363,837
399,963
86,216
159,340
675,403
753,293
2,507,395
2,341,817
Amounts falling due after more than one year:
Deferred tax asset (note 19)
959
-
0
-
0
-
0
Total debtors
676,362
753,293
2,507,395
2,341,817
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
748
2,017
-
0
-
0
Trade creditors
659,565
276,672
267,427
121,000
Corporation tax payable
139,728
330,295
-
0
126,780
Other taxation and social security
339,786
350,174
17,177
13,361
Other creditors
149,051
133,768
-
0
-
0
Accruals and deferred income
93,585
74,894
29,539
26,063
1,382,463
1,167,820
314,143
287,204
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
748
2,017
-
0
-
0
Payable within one year
748
2,017
-
0
-
0
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
19
Deferred taxation

The following are the deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
13,153
19,528
959
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
16,159
22,429
-
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
19,528
22,429
Credit to profit or loss
(7,334)
(6,270)
Liability at 31 December 2023
12,194
16,159
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
220,962
217,706

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
200
200
200
200
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
22
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
363,628
291,018
118,509
118,509
Between two and five years
483,638
646,908
29,627
148,136
847,266
937,926
148,136
266,645
23
Events after the reporting date

After the reporting period, Benchmark International CSS ZA (Pty) Ltd, divided its operations into two separate divisions. Benchmark International CSS ZA (Pty) Ltd will focus on Deal Transactions, while a new entity, Benchmark International Pty Ltd will focus on Deal Origination.

Practical operations have been transferred, with no material impact on stakeholders, staff or customers.

The directors are not aware of any other material event which occurred after the reporting date and up to the date of this report.

 

 

24
Related party transactions

The company has taken advantage of the exemption under Financial Reporting Standard 102 from disclosing transactions with wholly owned group companies.

 

During this financial year, sale of services totaling £ 242,211 (2022: £ 209,759) net of VAT were made by Equitas Capital Partners Limited to Benchmark International CSS ZA (Pty) Ltd a majority owned subsidiary, and at the year end the amount outstanding in relation to these sales was £ 25,482 (2022: £ 15,474). All transactions and outstanding balances were eliminated on consolidation in the Group Accounts.

 

During this financial year, sale of services totaling £ 98,614 (2022: £ 61,094) net of VAT were made by Equitas Capital Partners Limited to Benchmark International CSS GmbH a majority owned subsidiary, and at the year end the amount outstanding in relation to these sales was £ 8,666 (2022: £ 5,958). All transactions and outstanding balances were eliminated on consolidation in the Group Accounts.

 

At the year end, Equitas Capital Partners Ltd has a balance owed from Benchmark International CSS ZA (Pty) Ltd to the amount of £ 464,770 (2022: £ 541,527). Interest is payable on the loan amount and the interest charged in the year was £ 23,244 (2022: £ 133,468). The loan is repayable when cash flow permits. All transactions and outstanding balances were eliminated on consolidation in the Group Accounts.

EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Related party transactions
(Continued)
- 31 -

At the year end, Equitas Capital Partners Ltd has a balance owed from Benchmark International CSS GmbH to the amount of £829,061 (2022: £ 536,716). Interest is payable on the loan amount and the interest charged in the year was £1,035 (2022: £ 4,330). The loan is repayable when cash flow permits. All transactions and outstanding balances were eliminated on consolidation in the Group Accounts.

 

During this financial year, Benchmark International CSS ZA (Pty) Ltd a majority owned subsidiary, incurred management fees of £ 195,486 (2022: £ 198,475) which were payable to entities controlled by their shareholders. Amount owed at year end was nil (2022: £nil).

 

During this financial year, License costs of £ 1,034,033 (2022: £ 534,203) were payable to an entity under control by a director and shareholder of Equitas Capital Partners Limited, and at the year end amount owed in relation to these costs was £ 558,154 (2022: £ nil). In addition, during this financial year, sale of services totaling £ 184,807 (2022: £ 154,556) net of VAT were made by Equitas Capital Partners Limited to the entity owned and controlled by a director and shareholder of Equitas Capital Partners Limited, and at the year end the amount outstanding in relation to these sales was £ 50,536 (2022: £ 42,416).

25
Directors' transactions

Dividends totalling £2,500,000 (2022 - £2,950,000) were paid in the year in respect of shares held by the company's directors.

26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
4,137,285
3,018,275
Adjustments for:
Taxation charged
1,131,115
916,560
Finance costs
10,657
219
Investment income
(61,739)
(39,609)
Loss on disposal of tangible fixed assets
3,251
431
Loss on disposal of intangible assets
1,914
-
Amortisation and impairment of intangible assets
4,325
14,537
Depreciation and impairment of tangible fixed assets
227,107
209,288
Other gains and losses
5,119
-
Movements in working capital:
Decrease/(increase) in debtors
115,716
(353,232)
Increase in creditors
406,479
258,450
Cash generated from operations
5,981,229
4,024,919
EQUITAS CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
4,229,262
1,434,499
(30,898)
5,632,863
Bank overdrafts
(2,017)
1,269
-
(748)
4,227,245
1,435,768
(30,898)
5,632,115
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr S J KeaneMr J B M ThorntonMr M R J 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