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REGISTERED NUMBER: 08861481 (England and Wales)











Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 December 2023


for



EXNESS (UK) LTD



EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)








Contents of the Financial Statements

FOR THE YEAR ENDED 31 DECEMBER 2023





Page




Company Information  

1




Strategic Report  

2




Report of the Directors  

3




Report of the Independent Auditors  

4




Statement of Comprehensive Income

7




Statement of Financial Position  

8




Statement of Changes in Equity  

9




Statement of Cash Flows  

10




Notes to the Statement of Cash Flows  

11




Notes to the Financial Statements

12





EXNESS (UK) LTD



Company Information

FOR THE YEAR ENDED 31 DECEMBER 2023









DIRECTORS:

P Valov


D R Morris







REGISTERED OFFICE:

107 Cheapside


London


EC2V 6DN







REGISTERED NUMBER:

08861481 (England and Wales)







AUDITORS:

AGK Partners


Chartered Accountants & Statutory Auditors


1 Kings Avenue


London


N21 3NA



EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Strategic Report

FOR THE YEAR ENDED 31 DECEMBER 2023


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


REVIEW OF BUSINESS

The principal activity of Exness (UK) Ltd ("the Company") is that of the provision of investment services in relation to foreign exchange and contracts for difference ("CFDs").

The company is authorised and regulated by the Financial Conduct Authority ("FCA") as a IFPRU 750K firm (CRD IV Full Scope).


The Company fulfilled its regulatory responsibilities during the year under review and is well positioned to address compliance requirements arising from the growth of its B2B and liquidity provision business.  The Company has gradually increased its onboarding of B2B clients during 2023 and trading volumes continued to provide steady income throughout the year.


Going forward it is expected that the company will continue to increase its clients base and add further CFD instruments to broaden its market reach. In January 2024, the shareholders injected an additional 25 million USD in share capital, in anticipation of the company's further growth.


PRINCIPAL RISKS AND UNCERTAINTIES

The main risks arising from the Company's business activities are identified as operational risk, liquidity risk, market risk, counterparty and credit risk.

The company remains capitalised well in excess of the regulatory capital requirements.

The risk management undertaken mitigates the risks as detailed in the company's Internal Capital Adequacy and Risk Assessment Process (ICARA).

The ICARA provides an ongoing assessment of the risks that the Company believes may have a significant detrimental impact on its financial performance.

The board sets the strategy and policies for the management of these risks and assigns the management and monitoring of these risks as appropriate.

The principal risks are further detailed in the Company's Disclosures, that can be found at
https://www.exness.uk/legal_documents/.

KEY PERFORMANCE INDICATORS

The key performance indicators are:

Net assets of $66,818,221 saw an increase on last year's figure of $63,010,441.

The company's liquidity position (Cash at Bank and Liquid Investments) has increased by circa 5.4% maintaining our robust financial stability

Trading Revenue of $5,251,072 an increase of circa 53.6% compared to the previous year $3,409,209.

Operating profit $1,298,159. There is an increase of $727,300 in comparison to last year's operating profit of $570,859, predominantly due to favourable market conditions.

There is an increase in profit before tax from $378,563 in 2022 to $4,529,582 in 2023.

ON BEHALF OF THE BOARD:






D R Morris - Director



22 April 2024



EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Report of the Directors

FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.


DIVIDENDS

No dividends will be distributed for the year ended 31 December 2023.


EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.


DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.


P Valov

D R Morris


DISCLOSURE IN THE STRATEGIC REPORT

Information relating to the following areas have been disclosed in the strategic report:

- Review of the business

- Principal activities of the company


STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, AGK Partners, have signified their willingness to continue in office as auditors.


ON BEHALF OF THE BOARD:






D R Morris - Director



22 April 2024


Report of the Independent Auditors to the Members of

Exness (UK) Ltd


Opinion

We have audited the financial statements of Exness (UK) Ltd (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

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


Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of directors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.


Report of the Independent Auditors to the Members of

Exness (UK) Ltd



Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other

management, and from our commercial knowledge and experience of the industry;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.


We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.


To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of

potential bias; and

- investigated the rationale behind significant or unusual transactions.


In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.


There are inherent limitations in our audit procedures described above. The more removed that laws and regulations

are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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


Report of the Independent Auditors to the Members of

Exness (UK) Ltd



Use of our report

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





Alekos Christofi (FCCA) (Senior Statutory Auditor)

for and on behalf of AGK Partners

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA


22 April 2024



EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Statement of Comprehensive

Income

FOR THE YEAR ENDED 31 DECEMBER 2023



2023


2022


Notes

$   

$   



REVENUE

3

5,275,072


3,433,209




Cost of sales

323,482


240,000



GROSS PROFIT

4,951,590


3,193,209




Administrative expenses

3,653,431


2,622,350



OPERATING PROFIT

1,298,159


570,859




Interest receivable and similar income

2,599,972


1,142,496



3,898,131


1,713,355



Gain/(loss) on revaluation of fixed assets

631,451


(1,334,792

)


PROFIT BEFORE TAXATION

6

4,529,582


378,563




Tax on profit

8

721,802


89,592



PROFIT FOR THE FINANCIAL YEAR

3,807,780


288,971




OTHER COMPREHENSIVE INCOME

-


-



TOTAL COMPREHENSIVE INCOME FOR

THE YEAR

3,807,780


288,971





EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Statement of Financial Position

31 DECEMBER 2023



2023

2022



Notes

$   

$   

$   

$   


FIXED ASSETS

Property, plant and equipment

9

3,718


3,848



Investments

10

8,811,865


5,443,191



8,815,583


5,447,039




CURRENT ASSETS

Debtors

11

221,263


425,886



Investments

12

2,652,531


3,570,069



Cash at bank

59,439,505


55,331,536



62,313,299


59,327,491



CREDITORS

Amounts falling due within one year

13

4,310,661


1,764,089



NET CURRENT ASSETS

58,002,638


57,563,402



TOTAL ASSETS LESS CURRENT

LIABILITIES

66,818,221


63,010,441




CAPITAL AND RESERVES

Called up share capital

15

64,572,498


64,940,822



Other reserves

16

73,190


(295,134

)


Retained earnings

16

2,172,533


(1,635,247

)


SHAREHOLDERS' FUNDS

66,818,221


63,010,441




The financial statements were approved by the Board of Directors and authorised for issue on 22 April 2024 and were signed on its behalf by:






D R Morris - Director




EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Statement of Changes in Equity

FOR THE YEAR ENDED 31 DECEMBER 2023



Called up



share


Retained


Other


Total


capital


earnings


reserves


equity

$   

$   

$   

$   


Balance at 1 January 2022

64,940,822


(1,924,218

)

(295,134

)

62,721,470




Changes in equity

Total comprehensive income

-


288,971


-


288,971



Balance at 31 December 2022

64,940,822


(1,635,247

)

(295,134

)

63,010,441




Changes in equity

Redenomination of share

capital

-


-


368,324


368,324



Total comprehensive income

-


3,807,780


-


3,807,780



Balance at 31 December 2023

64,940,822


2,172,533


73,190


67,186,545





EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Statement of Cash Flows

FOR THE YEAR ENDED 31 DECEMBER 2023



2023


2022


Notes

$   

$   


Cash flows from operating activities

Cash generated from operations

1

3,355,973


(986,798

)


Net movement in participating interests

269,748


(33,126

)


Tax paid

(89,592

)

-



Net cash from operating activities

3,536,129


(1,019,924

)



Cash flows from investing activities

Purchase of tangible fixed assets

(1,200

)

(2,889

)


Purchase of fixed asset investments

(5,777,700

)

(2,371,268

)


Proceeds on sale of investments

3,750,768


6,545,507



Interest received

2,599,972


1,142,496



Net cash from investing activities

571,840


5,313,846




Increase in cash and cash equivalents

4,107,969


4,293,922



Cash and cash equivalents at beginning

of year

2

55,331,536


51,037,614




Cash and cash equivalents at end of year

2

59,439,505


55,331,536





EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Statement of Cash Flows

FOR THE YEAR ENDED 31 DECEMBER 2023


1.

RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS


2023


2022

$   

$   



Profit before taxation

4,529,582


378,563




Depreciation charges

1,330


2,971




Loss on disposal of fixed assets

207,246


240,434




(Gain)/loss on revaluation of fixed assets

(631,451

)

1,334,792




Finance income

(2,599,972

)

(1,142,496

)


1,506,735


814,264




(Increase)/decrease in trade and other debtors

(13,601

)

11,336




Increase/(decrease) in trade and other creditors

1,862,839


(1,812,398

)



Cash generated from operations

3,355,973


(986,798

)



2.

CASH AND CASH EQUIVALENTS



The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:



Year ended 31 December 2023


31.12.23


1.1.23

$   

$   



Cash and cash equivalents

59,439,505


55,331,536




Year ended 31 December 2022


31.12.22


1.1.22

$   

$   



Cash and cash equivalents

55,331,536


51,037,614





3.

ANALYSIS OF CHANGES IN NET FUNDS



At 1.1.23

Cash flow

At 31.12.23

$   

$   

$   



Net cash



Cash at bank

55,331,536


4,107,969


59,439,505



55,331,536


4,107,969


59,439,505





Liquid resources



Current asset investments

3,570,069


(917,538

)

2,652,531



3,570,069


(917,538

)

2,652,531




Total

58,901,605


3,190,431


62,092,036




4.

MAJOR NON-CASH TRANSACTIONS



The redenomination of share capital created an increase to reserves and a reduction in the value of share capital of £368,324.



EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Financial Statements

FOR THE YEAR ENDED 31 DECEMBER 2023


1.

STATUTORY INFORMATION



Exness (UK) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.



The Financial Statements of the company are presented in its functional currency, US dollar on the basis that this represents the currency of the primary economic environment in which it operates.


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


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



The principal activity of Exness (UK) Limited ("the Company") is that of the provision of investments services in relation to foreign exchange and contracts for difference ("CFDs").



The company's reporting currency is US Dollars $.



Significant judgements and estimates

In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods.

There are no significant judgements and estimates in the accounts for the year ended 31 December 2023.


Revenue recognition

Revenue represents profits and losses and commissions charged on foreign exchange trading, and CFDs (contracts for difference), together with gains or losses on financial instruments measured at fair value.


Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation. Cost includes the original purchase price and costs directly attributable to bringing the assets to working condition.

Depreciation is provided in order to write down the cost less estimated residual value of all tangible fixed assets over their estimated useful life, using the straight-line method. The rates of depreciation for each asset class are as follows:

Computer equipment - 20% on cost

Upon disposal of a tangible fixed asset, the gain or loss is calculated as the difference between the sales proceeds and the carrying value of the asset, and is recognised in the income statement.



EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Financial Statements - continued

FOR THE YEAR ENDED 31 DECEMBER 2023


2.

ACCOUNTING POLICIES - continued



Financial instruments

Financial instruments are recognised in the company's statement of financial position when the company becomes a party to the contractual provisions of the instrument.

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price and are subsequently carried at amortised cost using the effective interest method. Financial assets that are receivable within one year are not amortised. At the end of each reporting period financial assets carried at amortised cost are remeasured to their fair value with the resulting gain or loss being recognised in the income statement immediately.

At the end of the reporting period financial assets are assessed for indicators of impairment. A provision for impairment of financial assets is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the contract.The amount of the provision is the difference between the carrying amount and the recoverable amount, being the present value of estimated future cash flows, discounted at the effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the income statement. Subsequent recoveries of amounts previously written off are recognised in profit or loss.

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if the payment is due within one year.


Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Deferred tax is recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.


Foreign currencies

Transactions in foreign currencies are translated into USD at the spot exchange rate ruling at the date of transaction.

Assets and liabilities (monetary items) denominated in foreign currencies are retranslated into USD at the rates of exchange ruling at the statement of financial position date. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of transactions and the retranslation at period-end exchange rates of monetary items denominated in foreign currency are recognised in the income statement.


EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Financial Statements - continued

FOR THE YEAR ENDED 31 DECEMBER 2023


2.

ACCOUNTING POLICIES - continued



Client money

The Company holds client money on behalf of clients in accordance with the Client Asset (CASS) rules of the Financial Conduct Authority. Such client monies and the corresponding amounts due to clients are not shown on the face of the Statement of Financial Position as these are segregated funds helds under client accounts. Funds held in client accounts are shown as a note to the accounts.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank, deposit held at call with banks and other short-term highly liquid investments with maturity of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Employee benefits and Pension cost

The company provides a range of benefits to employees, including paid holiday arrangements and a defined contribution pension scheme.

Short term benefit, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

The company operates a defined contribution pension scheme, which is a pension scheme under which the company pays fixed contributions to a separate entity. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. Amounts not paid are shown in creditors in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

Investments
Investments in listed shares and securities including bonds are remeasured to market value at each year end date. Gains and losses on remeasurement are recognised in the profit or loss account for the period.

Investments in bonds maturing within one year are classified as current asset investments and those maturing after one year are classified as fixed asset investments.


Going concern

The directors have reasonable expectation that on the basis of the financial support from its owners, the company can continue to be in operational existence for the foreseeable future and to continue to adopt the going concern basis of accounting in preparing the financial statements.


Hire purchase and leasing commitments


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



Comparative Amounts


Comparative amounts have been restated to account for deferred tax in accordance with the requirements of FRS 102.


3.

REVENUE



The revenue and profit before taxation are attributable to the one principal activity of the company.



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



2023


2022

$   

$   



Trading revenue

5,251,072


3,409,209




Consulting revenue

24,000


24,000



5,275,072


3,433,209





EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Financial Statements - continued

FOR THE YEAR ENDED 31 DECEMBER 2023


4.

EMPLOYEES AND DIRECTORS


2023


2022

$   

$   



Wages and salaries

2,167,642


1,276,299




Social security costs

270,725


200,078




Other pension costs

116,080


104,173



2,554,447


1,580,550





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


2023


2022



Management, finance and administrative

8


8




5.

DIRECTORS' EMOLUMENTS


2023


2022

$   

$   



Directors' remuneration

593,717


349,985





Information regarding the highest paid director is as follows:


2023


2022

$   

$   



Emoluments etc

593,717


349,985




6.

PROFIT BEFORE TAXATION


The operating profit is stated after charging:

20232022
$   $   
Depreciation- owned assets1,3302,971
Loss on disposal of fixed assets207,247240,434
Foreign exchange differences36,624140,026

7.

AUDITORS' REMUNERATION


2023


2022

$   

$   



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

financial statements

9,488


9,271




8.

TAXATION



Analysis of the tax charge


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


2023


2022

$   

$   



Current tax:


UK corporation tax

721,802


89,592




Tax on profit

721,802


89,592





EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Financial Statements - continued

FOR THE YEAR ENDED 31 DECEMBER 2023


8.

TAXATION - continued



Reconciliation of total tax charge included in profit and loss


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



2023


2022

$   

$   



Profit before tax

4,529,582


378,563




Profit multiplied by the standard rate of corporation tax in the UK of

23.521% (2022 - 19%)  

1,065,403


71,927





Effects of:


Expenses not deductible for tax purposes

902


301,018




Capital allowances in excess of depreciation

(703

)

(1,169

)



Utilisation of tax losses

(343,800

)

(282,184

)



Total tax charge

721,802


89,592




9.

PROPERTY, PLANT AND EQUIPMENT


Computer


equipment

$   



COST


At 1 January 2023

17,979




Additions

1,200




At 31 December 2023

19,179




DEPRECIATION


At 1 January 2023

14,131




Charge for year

1,330




At 31 December 2023

15,461




NET BOOK VALUE


At 31 December 2023

3,718




At 31 December 2022

3,848




10.

FIXED ASSET INVESTMENTS


Listed


investments

$   



COST OR VALUATION


At 1 January 2023

5,443,191




Additions

5,777,700




Disposals

(151,187

)



Share of profit/(loss)

(65,299

)



Revaluations

459,991




Reclassification/transfer

(2,652,531

)



At 31 December 2023

8,811,865




NET BOOK VALUE


At 31 December 2023

8,811,865




At 31 December 2022

5,443,191





EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Financial Statements - continued

FOR THE YEAR ENDED 31 DECEMBER 2023


10.

FIXED ASSET INVESTMENTS - continued



Cost or valuation at 31 December 2023 is represented by:



Listed


investments

$   



Valuation in 2020

629,540




Valuation in 2021

(639,408

)



Valuation in 2022

(1,389,506

)



Valuation in 2023

631,451




Cost

9,579,788



8,811,865





Market value of listed investments at 31 December 2023 - $ 8,811,865 (2022 - $ 5,443,191 ).


11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2023

2022


$   

$   



Amounts owed by participating interests

-


218,224




Other debtors

171


171




VAT

7,463


40,269




Prepayments and accrued income

213,629


167,222



221,263


425,886




12.

CURRENT ASSET INVESTMENTS

2023

2022


$   

$   



Investment in bonds

2,652,531


3,570,069





Current asset investments represent investments in bonds and securities maturing within one year.





Details




Cost b/fwd


3,570,069




Disposal during the period


(3,599,581

)



Profit/(loss) on disposals


(141,948

)



Revaluation gain/(loss)


171,460




Transfers from fixed asset investment


2,652,531




============




2,652,531




============





13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2023

2022


$   

$   



Trade creditors

39,771


84,235




Amounts owed to participating interests

51,523


-




Tax

721,802


89,592




Other creditors

5,446


17,780




Amounts due to clients

3,080,926


1,528,796




Accrued expenses

411,193


43,686



4,310,661


1,764,089





EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Financial Statements - continued

FOR THE YEAR ENDED 31 DECEMBER 2023


14.

LEASING AGREEMENTS



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

2023

2022


$   

$   



Within one year

197,725


151,387





The lease relates to the office premises.


15.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

2023

2022



value:

$   

$   



51,248,014

Ordinary

$1.26

64,572,498


64,940,822





The ordinary shares have full voting rights, full rights to participate in any dividends declared and full rights to participate in any distribution on winding up.



On 30 November 2023 the Company's ordinary shares were redenominated from sterling to US dollars. The redenomination did not affect the rights of the holders of the ordinary shares.


16.

RESERVES


Retained


Other



earnings


reserves


Totals

$   

$   

$   




At 1 January 2023

(1,635,247

)

(295,134

)

(1,930,381

)



Profit for the year

3,807,780


-


3,807,780




SoCIE line item with acc967/32

-


368,324


368,324




At 31 December 2023

2,172,533


73,190


2,245,723




17.

PENSION COMMITMENTS


The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to $116,080 (2022: $104,173).

18.

RELATED PARTY DISCLOSURES



Other related parties

2023

2022


$   

$   



Sales  

2,422,747


4,180,436




Expenses  

288,170


134,637




Amount due from related party  

-


218,224




Amount due to related party  

274,426


921,650





The other related parties comprise of entities with common shareholders, its subsidiary and amounts due to shareholders.


19.

POST BALANCE SHEET EVENTS


On 11th January 2024 the company allotted and issued 19,841,270 ordinary shares. The shares were issued at their nominal value of $1.26 per share.

20.

ULTIMATE CONTROLLING PARTY


During the year under review, there was no single ultimate controlling party.



EXNESS (UK) LTD (REGISTERED NUMBER: 08861481)



Notes to the Financial Statements - continued

FOR THE YEAR ENDED 31 DECEMBER 2023


21.

CLIENT MONIES



As at the year end the company held client monies in segregated client accounts equivalent to $ 50,275 (2022:- $206).