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Registration number: 10503741

Cubicstone Capital Management Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Cubicstone Capital Management Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 25

 

Cubicstone Capital Management Limited

Company Information

Directors

S F Figueredo

J R Soper

S Haskan

Registered office

22A St James's Square
London
SW1Y 5LP

Auditors

Sterlings Ltd
Chartered Accountants
Lawford House
Albert Place
London
N3 1QA

 

Cubicstone Capital Management Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is investment management.

Fair review of the business

The results for the year and the financial position at the year end were considered satisfactory by the directors who expect growth in the business to continue for the foreseeable future.

Financial key performance indicators

The Directors are of the opinion that the relevant KPIs for an assessment and measurement of the Company's performance and financial position include net asset value growth and cash generation, the information for which is available in the accompanying financial statements.
 

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

317,888

257,500

Profit/(loss) for the year

£

(16,571)

(17,076)

Net assets

£

104,379

104,379

Cash at bank

£

104,569

57,438

Non financial key performance indicators

The business relies on the Company's profile and relations with clients to be maintained at a high standard. The Company continues to provide services to its main clients, indicating its success in this area, and is also managing to attract new clients and thus grow assets under management.

Principal risks and uncertainties

Political

A general election is due at some point in 2024 with the potential for a change in government and thus government policy. Changes to personal taxation particularly to tax efficient savings vehicles such as pensions and ISAs could impact negatively on our business. In addition, the current government plans to abolish the tax benefits of the Resident non Domiciled status. Such changes will probably occur regardless of the election result. This may affect some existing clients and may make it more difficult to attract non UK nationals as clients.

Market related

A market crash, whilst not affecting our financial position directly, will likely cause clients to be more cautious about investing additional sums into the market.

Economic

A prolonged downturn in the economy might reduce the savings rate of clients or even cause them to draw down on their savings which would reduce our income.

 

Cubicstone Capital Management Limited

Strategic Report for the Year Ended 31 December 2023

Section 172(1) statement

Directors' statement of compliance with duty to promote the success of the Company

The Directors are well aware of their duty under section 172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

- the likely consequences of any decision in the long term;
- the interests of the Company's employees;
- the need to foster the Company's business relationships with suppliers, customers, and others;
- the impact of the Company's operations on the community and the environment;
- the desirability of the Company maintaining a reputation for high standards of business conduct; and
- the need to act fairly as between members of the Company.

The Board always takes decisions for the long term, and individually and collectively aims to uphold the highest standards of conduct. Similarly, the Board understands that the Company can only prosper over the long term if it understands the needs of the Company and respects the views and needs of its customers, distributors, employees, suppliers, and the wider community in which it operates. A firm understanding of investors' needs of the Company is vital also to the Company's success along with a sustainable and environmentally responsible culture.

The Directors are fully aware of their responsibilities to promote the success of the Company in accordance with Section 172 of the Companies Act 2006.

The Board considers the Company's major stakeholders to include employees, suppliers, partners, and shareholders. When making decisions, the interest of each stakeholder group individually and collectively is considered. Certain decisions require more weight attached to some stakeholders than to others and while generally seeing the long term interest of the shareholders is of primary importance, the Directors consider those interests are served best by having regard to the interests of the other key stakeholder groups and, in fact, to all the section 172 considerations.

Long term value

The aim of all business resources allocations is to create long term value and relationships with our clients.

Our people

Given the size of the Company and the nature of the business, there are only a few employees of which the majority are directors themselves. The Board considers the Company's employees essential to the success of the Company.

Business relationships

The Company endeavours to maintain good relationships with its suppliers by contracting on their standard business terms and paying them promptly, within agreed and reasonable terms.

Community and environment

As a relatively small organisation the Company's impact on the community and the environment is modest but the Board endeavours to ensure that the business acts ethically and in an environmentally conscious manner.

 

Cubicstone Capital Management Limited

Strategic Report for the Year Ended 31 December 2023

Business conduct

The Board recognises its responsibility for setting and maintaining a high standard of behaviour and business conduct. This is underpinned by the aim to have full regulatory compliance, and to treat clients fairly. There is no special treatment for any stakeholders and all material information is disseminated through appropriate channels.

Shareholders

The Directors are committed to treating all shareholders equally. As part of its decision making process, the Board considers the interests of shareholders as a whole.

Approved and authorised by the Board on 22 April 2024 and signed on its behalf by:
 

.........................................
J R Soper
Director

 

Cubicstone Capital Management Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

The directors who held office during the year were as follows:

S F Figueredo

J R Soper

S Haskan

Dividends

The directors recommend no final dividend payment be made in respect of the financial year ended 31 December 2023. No dividend has been recognised as a liability in the financial statements.

Financial instruments

Objectives and policies

The major source of Company liquidity for the year was cash generated from operations which is likely also to be its key source for liquidity for the foreseeable future. The Company seeks to operate within any agreed facilities provided by the bank.

Price risk, credit risk, liquidity risk and cash flow risk

The Company's policy on liquidity risk is to ensure that sufficient cash is available to fund continuing operations.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors, Sterlings Ltd will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Approved and authorised by the Board on 22 April 2024 and signed on its behalf by:
 

.........................................
J R Soper
Director

 

Cubicstone Capital Management Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Cubicstone Capital Management Limited

Independent Auditor's Report to the Members of Cubicstone Capital Management Limited

Opinion

We have audited the financial statements of Cubicstone Capital Management Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

Cubicstone Capital Management Limited

Independent Auditor's Report to the Members of Cubicstone Capital Management Limited

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Cubicstone Capital Management Limited

Independent Auditor's Report to the Members of Cubicstone Capital Management Limited

The extent to which the audit was considered capable of detecting irregularities including fraud

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 Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, skills, and capabilities to identify or recognise 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 relevant industry;
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, and other legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where relevant; 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 HM Revenue & Customs, relevant regulators, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more remote 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Cubicstone Capital Management Limited

Independent Auditor's Report to the Members of Cubicstone Capital Management Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

......................................
Gary Moss (Senior Statutory Auditor)
For and on behalf of Sterlings Ltd, Statutory Auditor

Lawford House
Albert Place
London
N3 1QA

24 April 2024

 

Cubicstone Capital Management Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

317,888

257,500

Cost of sales

 

(234,242)

(192,703)

Gross profit

 

83,646

64,797

Administrative expenses

 

(100,710)

(82,861)

Operating loss

4

(17,064)

(18,064)

Other interest receivable and similar income

5

493

27

Loss before tax

 

(16,571)

(18,037)

Tax on loss

9

-

961

Loss for the financial year

 

(16,571)

(17,076)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Cubicstone Capital Management Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Loss for the year

(16,571)

(17,076)

Total comprehensive income for the year

(16,571)

(17,076)

 

Cubicstone Capital Management Limited

(Registration number: 10503741)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

10

4,390

4,938

Current assets

 

Debtors

11

75,553

71,972

Cash at bank and in hand

 

104,569

57,438

 

180,122

129,410

Creditors: Amounts falling due within one year

13

(80,133)

(63,398)

Net current assets

 

99,989

66,012

Net assets

 

104,379

70,950

Capital and reserves

 

Called up share capital

100,100

50,100

Profit and loss account

15

4,279

20,850

Shareholders' funds

 

104,379

70,950

Approved and authorised by the Board on 22 April 2024 and signed on its behalf by:
 

.........................................
J R Soper
Director

 

Cubicstone Capital Management Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2023

50,100

20,850

70,950

Loss for the year

-

(16,571)

(16,571)

New share capital subscribed

50,000

-

50,000

At 31 December 2023

100,100

4,279

104,379


 

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2022

50,100

37,926

88,026

Loss for the year

-

(17,076)

(17,076)

At 31 December 2022

50,100

20,850

70,950

 

Cubicstone Capital Management Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Loss for the year

 

(16,571)

(17,076)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

1,464

1,649

Finance income

5

(493)

(27)

Income tax expense

9

-

(961)

 

(15,600)

(16,415)

Working capital adjustments

 

(Increase)/decrease in trade debtors

11

(3,581)

46,334

Increase/(decrease) in trade creditors

13

16,735

(29,768)

Cash generated from operations

 

(2,446)

151

Income taxes paid

9

-

(1)

Net cash flow from operating activities

 

(2,446)

150

Cash flows from investing activities

 

Interest received

5

493

27

Acquisitions of tangible assets

(916)

(1,528)

Net cash flows from investing activities

 

(423)

(1,501)

Cash flows from financing activities

 

Proceeds from issue of ordinary shares, net of issue costs

 

50,000

-

Net increase/(decrease) in cash and cash equivalents

 

47,131

(1,351)

Cash and cash equivalents at 1 January

 

57,438

58,789

Cash and cash equivalents at 31 December

 

104,569

57,438

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
22A St James's Square
London
SW1Y 5LP
England

The principal place of business is:
22A St James's Square
London
SW1Y 5LP
England

These financial statements were authorised for issue by the Board on 22 April 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Pounds Sterling, which is also the functional currency of the Company. Rounding of amounts shown in the financial statements is to the nearest Pound.

Going concern

The financial statements have been prepared on a going concern basis.

The Directors are satisfied that the going concern basis is appropriate for the preparation of these financial statements.

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Post balance sheet events

There have been no significant events affecting the company since the year end.

Judgements

In the application of the Company's accounting policies, which are described above, management is required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on judgement and experience together with any other factors that are considered to be relevant. Actual results may differ from these estimates.

Estimates and any underlying assumptions used are reviewed on a continuing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the current period and subsequent periods.

Revenue recognition

Turnover is the amount derived from the provision of services and is stated net of VAT.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax, and other sales taxes. The following criteria must be met also before revenue is recognised:

Rendering of services:

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Finance income and costs policy

Interest income is recognised in profit or loss using the effective interest method.

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Tax

The tax expense for the period comprises corporation tax and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income or to an item recognised directly in equity is recognised also in other comprehensive income or directly in equity respectively.

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

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

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

25% reducing balance

Depreciation is not charged on a tangible fixed asset until it is brought into use.

Cash and cash equivalents

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

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Trade debtors

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

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Borrowings

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

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the Company has an obligation at the reporting date as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases.

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 1 January 2019 to continue to be charged over the period to the first market rent review rather than the term of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Financial instruments

Classification
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties, and investments in ordinary shares.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

 Recognition and measurement
A financial instrument is recognised when the Company becomes a party to the contractual provisions of the instrument with initial measurement being at the transaction price.

 Impairment
Financial assets are assessed for indications of impairment at the end of each accounting period. They are considered to be impaired when there is evidence that the estimated future cash flows of the asset have been affected.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Rendering of services

317,888

257,500

All turnover arose within the United Kingdom and was one type of class.

4

Operating loss

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

1,464

1,649

Foreign exchange losses

4,595

2,996

Other operating lease rentals

12,039

6,205

5

Other interest receivable and similar income

2023
 £

2022
 £

Interest income on bank deposits

493

27

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

30,933

39,529

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

5

5

5

5

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

11,126

19,136

8

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

7,018

7,404


 

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Deferred taxation

Arising from origination and reversal of timing differences

-

(961)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Loss before tax

(16,571)

(18,037)

Corporation tax at standard rate

(3,148)

(3,427)

Effect of tax losses

3,034

3,491

Deferred tax credit

-

(961)

Tax increase from depreciation

278

313

Tax decrease from capital allowances

(174)

(377)

Effect of non deductible expenses

10

-

Total tax credit

-

(961)

On the basis of these financial statements no provision has been made for corporation tax.

The company has estimated trading losses of £34,344 (2022 - £18,375) available for carry forward against future trading profits.

The company has a deferred tax asset amounting to approximately £18,375 (2022 - £2,553) as at year end which has not been provided on the basis of inadequate evidence of recoverability for the foreseeable future. The amount not recognised in the period was £18,375 (2022 - £2,553).

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

10

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2023

8,272

8,272

Additions

916

916

At 31 December 2023

9,188

9,188

Depreciation

At 1 January 2023

3,334

3,334

Charge for the year

1,464

1,464

At 31 December 2023

4,798

4,798

Carrying amount

At 31 December 2023

4,390

4,390

At 31 December 2022

4,938

4,938

11

Debtors

Note

2023
£

2022
£

Other debtors

 

10,457

8,786

Accrued income

 

64,494

62,584

Corporation tax asset

9

602

602

 

75,553

71,972

12

Cash and cash equivalents

2023
 £

2022
 £

Cash at bank

104,569

57,438

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Amounts due to related parties

18

1,950

-

Social security and other taxes

 

3,281

-

Other creditors

 

49

49

Accrued expenses

 

74,452

62,948

Corporation tax liability

9

401

401

 

80,133

63,398

14

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

A Ordinary shares of £0.01 each

4,170,000

41,700

-

-

B Ordinary shares of £0.01 each

4,170,000

41,700

-

-

C Ordinary shares of £0.01 each

1,670,000

16,700

-

-

Ordinary shares of £0.01 each

-

-

5,010,000

50,100

10,010,000

100,100

5,010,000

50,100

There was a single class of ordinary shares. On 26 June 2023 1,000,000 Ordinary shares of £0.01 were allotted called up and fully paid at par. On 25 October 2023 the 6,010,000 Ordinary shares of £0.01 were redesignated as 2,170,000 A Ordinary shares of £0.01, 2,170,000 B Ordinary shares of £0.01, and 1,670,000 C Ordinary shares of £0.01. On 15 December 2023 2,000,000 A Ordinary shares of £0.01 and 2,000,000 B Ordinary shares of £0.01 were allotted called up and fully paid at par.

The A Ordinary shares, B Ordinary shares, and C Ordinary shares rank pari passu except with regard to entitlement to dividends which may vary. There are no restrictions on the distribution of dividends and the repayment of capital.

15

Reserves

Profit and loss account

The profit and loss account represents retained profits and losses.

Capital risk management

 

Cubicstone Capital Management Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The company is subject to the capital requirements imposed by the Financial Conduct Authority (FCA). The FCA requires the company to maintain a minimum level of capital of €50,000 which was complied with throughout the year.

16

Dividends

The directors do not propose the payment of a final dividend. No dividend has been accrued in the Balance Sheet.

17

Commitments

Commitments under operating leases

The Company had no commitments under non-cancellable operating leases as at the balance sheet date.

18

Related party transactions

During the year the Company paid consultancy fees of £222,738 (2022 - £220,076) to HandB Capital Partners Limited, a company in which Mr S Haskan is a director and shareholder.

Key management personnel

The key management comprises the directors.

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

11,126

19,136

19

Financial instruments

Categorisation of financial instruments

2023
 £

2022
 £

Financial assets measured at fair value through profit or loss

104,569

57,438

Financial assets measured at fair value through the profit and loss account comprise cash at bank.

20

Control

The controlling party to the reporting entity is any two of S F Figuredo, J R Soper, and S Haskan acting in concert.