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Registered number: 08133565










ALTUM CAPITAL MANAGEMENT (UK) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
COMPANY INFORMATION


Directors
Catherine Price 
Marjorie Hogan 




Registered number
08133565



Registered office
10 Queen Street Place

London

EC4R 1AG




Independent auditors
Haysmacintyre LLP

10 Queen Street Place

London

EC4R 1AG




Bankers
Barclays Bank plc

PO Box 299

Birmingham

B1 3PF




Solicitors
Simmons & Simmons
1 Ropemaker Street

London

EC2Y 9SS





 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 7
Statement of Comprehensive Income
 
 
8
Statement of Financial Position
 
 
9
Statement of Changes in Equity
 
 
10
Statement of Cash Flows
 
 
11
Analysis of Net Debt
 
 
12
Notes to the Financial Statements
 
 
13 - 23


 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report of Altum Capital Management (UK) Limited ("the Company") for the year ended 31 December 2023.

Business review
 
The principal activity of the Company is the provision of trade execution, marketing and research services to Altum Capital Management LLC ("the LLC"). The Company is regulated by the Financial Conduct Authority ("the FCA") under registration number 613245. The directors do not anticipate any change in the nature of the Company and the Company's principal activity going forward.
The Company has seen good progess in business development in the year which has resulted in profit for the year after tax, as set out in the Statement of Comprehensive Income on page 7, of £390,846 (2022: £259,758) which has been transferred to reserves. This has resulted in total shareholders' funds at year end of £1,480,126 (2022: £2,502,785) which is considered satisfactory by the directors.  The directors are confident that positive results will continue in the year ending 31 December 2024.

Principal risks and uncertainties
 
The Company operates systems and controls to mitigate any adverse effects across the range of risks that it faces. Except for intra-group risk, the Company has no significant exposure to price, credit or interest rate risk. The intra-group risk is managed through common management and the Company receives, annually, a letter of support from the LLC.

Financial key performance indicators
 
Given the straightforward nature of the business, the directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172 of the Companies Act 2006 requires those charged with governance to act in the manner they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its stakeholders. As part of his deliberations and decision making process, the directors have taken into account the following:
• 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 between members of the Company.
The directors have considered stakeholders to include those who work for and with them, invest with them, regulate them, and live in the societies they serve. Careful consideration has been given to the factors set out above in discharging their duty under Section 172. It is recognised that building strong relationships with stakeholders will help to deliver the Company’s business objectives. The directors are committed to effective and fair engagement with all stakeholders. Depending on the nature of the issue in question, the relevance of each stakeholder group may differ and, as such, as part of engagement with stakeholders, the relative interests and priorities of each group are considered. It is acknowledged however that not every decision made will necessarily result in a positive outcome for all stakeholders.

Page 1

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board on 19 April 2024 and signed on its behalf.


Marjorie Hogan
Director

Page 2

 
ALTUM CAPITAL MANAGEMENT (UK) 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.

Results and dividends

The profit for the year, after taxation, amounted to £390,846 (2022 - £259,758).

During the year dividends of £1,413,505 (2022: £Nil) were paid to the shareholder.

Directors

The directors who served during the year were:

Catherine Price 
Marjorie Hogan 

MIFIDPRU 8 Disclosures

Our MIFIDPRU 8 Disclosures can be found at: https://www.altumcredit .com/

Future developments

The Company continues to invest in its people, systems and infrastructure, with a view to ensuring that a high level of service continues to be provided to clients over time.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

This report was approved by the board on 19 April 2024 and signed on its behalf.
 





Marjorie Hogan
Director

Page 4

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 

Opinion


We have audited the financial statements of Altum Capital Management (UK) Limited ("the Company") for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern


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


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

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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALTUM CAPITAL MANAGEMENT (UK) LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


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 an Auditors' 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:


 
Page 6

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALTUM CAPITAL MANAGEMENT (UK) LIMITED (CONTINUED)

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the investment advisory business and trade regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
• Discussions with management regarding unusual correspondence with tax authorities and the FCA;
• Discussions with management including consideration of known or suspected instances of non-compliance
with laws and regulation and fraud;
• Evaluating management’s controls designed to prevent and detect irregularities;
• Identifying and testing journals, in particular journal entries posted with for unusually large amounts, round sum
amounts being posted, postings by unusual users or with unusual descriptions;
• Challenging assumptions and judgements made by management in their critical accounting estimates


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 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 Auditors' 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 2006Our 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 Auditors' 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.



Edward Parkes (Senior Statutory Auditor)
  
for and on behalf of
Haysmacintyre LLP
 
Statutory auditors
  
10 Queen Street Place
London
EC4R 1AG

19 April 2024
Page 7

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
3,701,883
2,433,779

Administrative expenses
  
(3,219,029)
(2,116,330)

Operating profit
 5 
482,854
317,449

Interest receivable and similar income
 9 
24,733
-

Interest payable and expenses
  
-
(946)

Profit before tax
  
507,587
316,503

Tax on profit
 10 
(116,741)
(56,745)

Profit for the financial year
  
390,846
259,758

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 23 form part of these financial statements.

Page 8

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
REGISTERED NUMBER:08133565

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible fixed assets
 12 
181,047
377,815

Current assets
  

Debtors: amounts falling due after more than one year
 13 
162,279
162,279

Debtors: amounts falling due within one year
 13 
1,854,076
1,938,547

Cash at bank and in hand
 14 
865,005
730,839

  
2,881,360
2,831,665

Creditors: amounts falling due within one year
 15 
(1,555,443)
(631,202)

Net current assets
  
 
 
1,325,917
 
 
2,200,463

Total assets less current liabilities
  
1,506,964
2,578,278

Provisions for liabilities
  

Deferred tax
 16 
(26,838)
(75,493)

Net assets
  
1,480,126
2,502,785


Capital and reserves
  

Called up share capital 
 17 
275,001
275,001

Profit and loss account
 18 
1,205,125
2,227,784

  
1,480,126
2,502,785


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 April 2024.




Marjorie Hogan
Director

The notes on pages 13 to 23 form part of these financial statements.

Page 9

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
275,001
1,968,026
2,243,027



Profit for the year
-
259,758
259,758



At 1 January 2023
275,001
2,227,784
2,502,785



Profit for the year
-
390,846
390,846

Dividends
-
(1,413,505)
(1,413,505)


At 31 December 2023
275,001
1,205,125
1,480,126


The notes on pages 13 to 23 form part of these financial statements.

Page 10

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
390,846
259,758

Adjustments for:

Depreciation of tangible assets
208,770
221,001

Loss on disposal of tangible assets
-
530

Interest paid
-
946

Interest received
(24,733)
-

Taxation charge
116,741
56,745

Decrease in debtors
82,919
3,147,452

Increase/(decrease) in creditors
868,696
(3,438,769)

Corporation tax paid
(108,280)
(301,572)

Net cash generated from operating activities

1,534,959
(53,909)


Cash flows from investing activities

Purchase of tangible fixed assets
(12,002)
(7,843)

Interest received
24,733
-

Net cash from investing activities

12,731
(7,843)

Cash flows from financing activities

Dividends paid
(1,413,505)
-

Interest paid
-
(946)

Net cash used in financing activities
(1,413,505)
(946)

Net increase/(decrease) in cash and cash equivalents
134,185
(62,698)

Cash and cash equivalents at beginning of year
730,820
793,518

Cash and cash equivalents at the end of year
865,005
730,820


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
865,005
730,839

Bank overdrafts
-
(19)

865,005
730,820


The notes on pages 13 to 23 form part of these financial statements.

Page 11

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

730,839

134,166

865,005

Bank overdrafts

(19)

19

-


730,820
134,185
865,005

The notes on pages 13 to 23 form part of these financial statements.

Page 12

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Altum Capital Management (UK) Limited is a limited liability company incorporated and domiciled in England and Wales. The registered office address is 10 Queen Street Place, London, EC4R 1AG. The principal place of business is 15 Stratford Place, Marylebone, London, W1C 1BE.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

In assessing the Company’s ability to continue as a going concern, the directors have considered the Company’s liquidity position and expected future performance. The directors have prepared forecasts of the Company’s cost base covering a period of at least twelve months from the date of approval of these financial statements; which will be met by the ongoing sub-advisory agreement with the parent undertaking, Altum Capital Management LLC. The LLC makes payments periodically to settle its debt to the Company and has pledged ongoing support of the Company. On this basis, the directors continue to adopt the going concern basis in preparing the financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Pound Sterling.

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.

 
2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.  Turnover is in the form of management fees earned from the parent undertaking, Altum Capital Management LLC ("the LLC"), as noted further in note 21.

Page 13

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessee

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

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.

 
2.6

Interest income

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

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

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

The current income 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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Page 14

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.9
Current and deferred taxation (continued)


 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
5 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.12

Cash and cash equivalents

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

 
2.13

Creditors

Short-term creditors are measured at the transaction price.

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Page 15

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)


Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results may differ.
The directors are of the opinion that due to the nature of the business, there are no material accounting estimates or judgements used in the preparation of these financial statements, other than the depreciation policy and useful economic life of tangible fixed assets.  The items are significant in size and the depreciation policies are consistent year on and generally in line with industry standards.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Management fees
3,701,883
2,433,779


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Depreciation of tangible fixed assets
208,770
221,001

Exchange differences
(31)
(4,592)

Other operating lease rentals
245,864
245,864

Page 16

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
15,000
12,750

Fees payable to the Company's auditors and their associates in respect of:

Taxation compliance services
2,880
2,200

All other services
23,333
21,593


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,002,284
1,108,485

Social security costs
270,054
157,522

Cost of defined contribution scheme
12,467
12,178

2,284,805
1,278,185


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







4
4

Page 17

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
1,750,000
850,000

Company contributions to defined contribution pension schemes
4,998
4,998

1,754,998
854,998


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £1,250,000 (2022 - £550,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,998 (2022 - £4,998).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
24,733
-


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
165,576
99,509

Adjustments in respect of previous periods
(180)
(273)


Total current tax
165,396
99,236

Deferred tax


Origination and reversal of timing differences
(48,655)
(42,491)


Taxation on profit on ordinary activities
116,741
56,745
Page 18

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
507,587
316,503


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
119,385
60,136

Effects of:


Expenses not deductible for tax purposes
412
227

Capital allowances for year in excess of depreciation
46,280
40,153

Adjustments to tax charge in respect of prior periods
(180)
(273)

Other timing differences leading to an increase in taxation
(501)
(879)

Changes in provisions leading to a decrease in the tax charge
-
(128)

Adjustment of closing deferred tax to average tax rate
(48,655)
(42,491)

Total tax charge for the year
116,741
56,745


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2023
2022
£
£


Dividends
1,413,505
-

Page 19

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Fixtures and fittings
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
1,018,222
98,894
1,117,116


Additions
-
12,002
12,002


Disposals
-
(6,136)
(6,136)



At 31 December 2023

1,018,222
104,760
1,122,982



Depreciation


At 1 January 2023
649,303
89,998
739,301


Charge for the year on owned assets
203,645
5,125
208,770


Disposals
-
(6,136)
(6,136)



At 31 December 2023

852,948
88,987
941,935



Net book value



At 31 December 2023
165,274
15,773
181,047



At 31 December 2022
368,919
8,896
377,815

Page 20

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
162,279
162,279


2023
2022
£
£

Due within one year

Amounts due from group undertakings
1,690,219
1,744,061

Other debtors
34,720
62,806

Prepayments
129,137
131,680

1,854,076
1,938,547


Amounts due from group undertakings are unsecured, interest free and repayable on demand.


14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
865,005
730,839

Less: bank overdrafts
-
(19)

865,005
730,820



15.


Creditors: amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
19

Trade creditors
11,862
24,432

Corporation tax
55,563
-

Other taxation and social security
154,680
30,067

Other creditors
1,384
2,175

Accruals and deferred income
1,331,954
574,509

1,555,443
631,202


Page 21

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Deferred taxation




2023


£






At beginning of year
(75,493)


Credited to profit or loss
48,655



At end of year
(26,838)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(26,838)
(76,030)

Origination and reversal of timing differences
-
537

(26,838)
(75,493)


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



275,001 (2022: 275,001) Ordinary shares of £1.00 each
275,001
275,001



18.


Reserves

Profit and loss account

The profit and loss account includes all accumulated profits and losses less dividends declared.


19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost represents contributions payable by the Company to the fund and amounted to £12,467 (2022: £12,178). Contributions totalling £76 (2022: £2,146) were receivable from (2022: payable to) the fund at the reporting date and are included in debtors (2022: creditors).

Page 22

 
ALTUM CAPITAL MANAGEMENT (UK) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
246,044
246,044

Later than 1 year and not later than 5 years
984,849
984,849

Later than 5 years
72,127
318,171

1,303,020
1,549,064


21.


Related party transactions

During the year ended 31 December 2023, the Company earned fees amounting to £3,701,883 (2022: £2,433,780) from its parent undertaking, Altum Capital Management LLC ("the LLC"). Amounts totalling £1,940,759 (2022: £5,604,413) were received from the LLC and the LLC paid costs on behalf of the Company totalling £511,656 (2022: £60,233). The Company also paid costs on behalf of the LLC of £110,195 (2022: £111,635) and declared a dividend of £1,413,505 (2022: £Nil) payable to the LLC. At 31 December 2023, the LLC owed the Company £1,690,219 (2022: £1,744,061) which is included in debtors. The balance is unsecured, interest free and repayable on demand.
Key management personnel of the Company is comprised of the directors. Details of the directors' emoluments are disclosed in note 8.


22.


Parent undertaking and controlling party

The immediate parent undertaking is Altum Capital Management LLC, and the ultimate controlling party is Marjorie Hogan.
The LLC is registered in the United States of America.

Page 23