Company registration number 10293635 (England and Wales)
ALPH CAPITAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
ALPH CAPITAL LIMITED
COMPANY INFORMATION
Directors
Philippe Pierre Michelotti
Amnon Barak
(Appointed 1 April 2024)
Company number
10293635
Registered office
1 Princeton Mews
167-169 London Road
Kingston Upon Thames
Surrey
KT2 6PT
Auditor
A.J.B. Scholes Ltd
8 Walker Street
Edinburgh
EH3 7LA
ALPH CAPITAL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
ALPH CAPITAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 November 2023.
The company is authorised and regulated by the FCA. The company monitors and maintains the required regulatory capital and adheres to FCA guidelines to ensure the protection of their clients' interests.
Review of the business
The company's business developed in line the board's expectations and the results for the year and the financial position at the year end and were considered satisfactory given industry conditions and general economic uncertainties.
Principal risks and uncertainties
As a service provider the directors consider the key financial risk exposures faced by the company relate to credit risk and the need to maintain sufficient liquidity to satisfy regulatory capital requirements and working capital needs.
The company does not take trade positions which expose it to material price risk nor does it have a material exposure to foreign exchange movements.
The company's financial risk management objectives are therefore to minimise the key financial risk through having clearly defined terms of business with counter parties and stringent credit control over transactions with them and regular monitoring of cash flow and management accounts to ensure regulatory capital requirements are not breached and the company maintains adequate working capital.
Development and performance
At the year end, the company has net assets of £448,477 (2022: £277,636).
Key performance indicators
The company's key performance indicators (KPI) are turnover and maintaining overhead expenditure in line with the company's budgets. The company uses benchmarking software to review returns on clients' investment portfolios and to monitor performance fee income.
Director's statement of compliance with duty to promote the success of the Company
The directors of the company have acted in a way that they consider, in good faith, would most likely promote the success of the company for the befit of its shareholders, employees and customers as a whole, and in doing so, the directors have considered (amongst other matters):
the likely consequences of any decision in the long term,
the interest of the company's employees,
the need to foster the company's business relationship with customers and others,
the impact of the company's operations on the community and environment,
the desirability of the company maintaining a reputation for high standards of business conduct, and
the need to act fairly among shareholders, employees and customers of the company.
This report was approved by the board of directors on 26 August 2024 and signed on behalf of the board by:
Philippe Pierre Michelotti
Director
26 August 2024
ALPH CAPITAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 November 2023.
Principal activities
The principal activity of the company continued to be that of provision of advisory services and discretionary fund management.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Philippe Pierre Michelotti
Amnon Barak
(Appointed 1 April 2024)
Financial instruments
Treasury operations and Financial instruments
The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company's activities.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expenses, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Foreign currency risk
The company's principal foreign currency exposures arise from making foreign currency transactions. The company policy permits but does not demand that these exposures may be hedged in order to fix the costs in sterling.
Credit risk
Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
There are no matters to report.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in the reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
ALPH CAPITAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
Statement of directors' responsibilities
The directors are responsible for preparing the strategic report, 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 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 the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
s
make judgments 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; 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.
Statement of disclosure to auditor
Each of the persons who is a director at the date of approval of this report confirms that:
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware;
and
they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
On behalf of the board
Philippe Pierre Michelotti
Director
26 August 2024
ALPH CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALPH CAPITAL LIMITED
- 4 -
Opinion
We have audited the financial statements of Alph Capital Limited (the 'company') for the year ended 30 November 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 November 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ALPH CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALPH CAPITAL LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, and control environment to which it sits;
the growth of the company both financially and operationally;
results of our enquiries of the members;
any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
the matters discussed among the audit engagement team.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and irregularities. Income recognition was a key area of focus. In common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk of management override.
ALPH CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALPH CAPITAL LIMITED
- 6 -
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, such as the UK Companies Act 2006 as applied to companies and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These include laws and regulations pertaining to the company's activities as an entity regulated under the Financial Services and Markets Act.
In addition to the above, our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of members concerning actual potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
in addressing the risk of fraud through override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Ivan Houston
Senior Statutory Auditor
For and on behalf of A.J.B. Scholes Ltd
27 August 2024
Chartered Accountants
Statutory Auditor
8 Walker Street
Edinburgh
EH3 7LA
ALPH CAPITAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
949,643
691,195
Administrative expenses
(650,848)
(645,704)
Operating profit
4
298,795
45,491
Interest receivable and similar income
8
272
52
Interest payable and similar expenses
9
(6,074)
(7,651)
Amounts written off investments
10
-
(27,312)
Profit before taxation
292,993
10,580
Tax on profit
11
(122,152)
(19,742)
Profit/(loss) for the financial year
170,841
(9,162)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ALPH CAPITAL LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
250,165
251,826
Investments
14
89,083
89,083
339,248
340,909
Current assets
Debtors
15
279,623
106,677
Cash at bank and in hand
97,833
53,341
377,456
160,018
Creditors: amounts falling due within one year
16
(186,597)
(113,768)
Net current assets
190,859
46,250
Total assets less current liabilities
530,107
387,159
Creditors: amounts falling due after more than one year
17
(69,130)
(109,523)
Provisions for liabilities
Provisions
19
12,500
(12,500)
-
Net assets
448,477
277,636
Capital and reserves
Called up share capital
20
60,000
60,000
Profit and loss reserves
388,477
217,636
Total equity
448,477
277,636
The financial statements were approved by the board of directors and authorised for issue on 26 August 2024 and are signed on its behalf by:
Philippe Pierre Michelotti
Director
Company registration number 10293635 (England and Wales)
ALPH CAPITAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 December 2021
60,000
226,798
286,798
Year ended 30 November 2022:
Loss and total comprehensive income
-
(9,162)
(9,162)
Balance at 30 November 2022
60,000
217,636
277,636
Year ended 30 November 2023:
Profit and total comprehensive income
-
170,841
170,841
Balance at 30 November 2023
60,000
388,477
448,477
ALPH CAPITAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
116,567
108,187
Interest received
272
52
Interest paid
(6,074)
(7,651)
Income taxes paid
(19,742)
(22,829)
Net cash inflow from operating activities
91,023
77,759
Investing activities
Purchase of tangible fixed assets
(4,106)
(3,487)
Proceeds from disposal of investments
(51,086)
Net cash used in investing activities
(4,106)
(54,573)
Financing activities
Repayment of borrowings
(41,577)
(33,309)
Net cash used in financing activities
(41,577)
(33,309)
Net increase/(decrease) in cash and cash equivalents
45,340
(10,123)
Cash and cash equivalents at beginning of year
52,493
62,616
Cash and cash equivalents at end of year
97,833
52,493
Relating to:
Cash at bank and in hand
97,833
53,341
Bank overdrafts included in creditors payable within one year
(848)
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
1
Accounting policies
Company information
Alph Capital Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Princeton Mews, 167-169 London Road, Kingston Upon Thames, Surrey, KT2 6PT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT where applicable.
Turnover represents fees receivable for the provision of investments advisory services and fund management.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers and furniture
25% straight line
Yacht
10% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
In the current year there has been no depreciation charged on the yacht (2022: £Nil) as this asset is currently not in a useable condition and is being restored. The asset has not been used in the current year or previous year as it is not in a safe condition to sail the yacht.
1.5
Fixed asset investments
Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation 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.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Fund management and aggregation fees
949,643
691,195
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
3
Turnover
(Continued)
- 15 -
2023
2022
£
£
Turnover analysed by geographical market
Europe
949,643
691,195
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom but clients can be based anywhere in Europe.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(2,154)
7,223
Depreciation of owned tangible fixed assets
5,767
1,746
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
7,746
7,500
For other services
Taxation compliance services
500
All other non-audit services
2,000
2,500
-
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
1
1
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
140,195
120,000
Social security costs
18,092
16,125
158,287
136,125
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
140,195
120,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
272
52
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
6,074
7,651
10
Amounts written off investments
2023
2022
£
£
Other gains and losses
-
(27,312)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
122,152
19,742
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
11
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
292,993
10,580
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
73,248
2,010
Tax effect of expenses that are not deductible in determining taxable profit
56,024
12,211
Effect of change in corporation tax rate
(10,560)
Deferred tax asset not recognised
3,440
5,521
Taxation charge for the year
122,152
19,742
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2023
2022
Notes
£
£
In respect of:
Fixed asset investments
14
-
27,312
Recognised in:
Amounts written off investments
-
27,312
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
13
Tangible fixed assets
Computers and furniture
Yacht
Total
£
£
£
Cost
At 1 December 2022
46,356
272,752
319,108
Additions
4,106
4,106
At 30 November 2023
50,462
272,752
323,214
Depreciation and impairment
At 1 December 2022
40,355
26,927
67,282
Depreciation charged in the year
5,767
5,767
At 30 November 2023
46,122
26,927
73,049
Carrying amount
At 30 November 2023
4,340
245,825
250,165
At 30 November 2022
6,001
245,825
251,826
14
Fixed asset investments
2023
2022
£
£
Unlisted investments
89,083
89,083
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 December 2022 & 30 November 2023
116,395
Impairment
At 1 December 2022 & 30 November 2023
27,312
Carrying amount
At 30 November 2023
89,083
At 30 November 2022
89,083
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
104,398
3,017
Other debtors
19,940
4,133
Prepayments and accrued income
155,285
99,527
279,623
106,677
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
848
Other borrowings
18
34,524
35,708
Trade creditors
7,519
12,731
Corporation tax
122,152
19,742
Other taxation and social security
1,584
Other creditors
1,219
33,155
Accruals and deferred income
21,183
10,000
186,597
113,768
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
18
69,130
109,523
18
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
848
Other loans
103,654
145,231
103,654
146,079
Payable within one year
34,524
36,556
Payable after one year
69,130
109,523
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
19
Provisions for liabilities
2023
2022
£
£
Sales taxes
12,500
-
A provision has been raised for foreign sales taxes which the company may be due to pay in respect of certain services supplied in jurisdictions outwith the UK. The directors are seeking confirmation of the tax treatment of those supplies and since it is considered probable that an obligation to pay existed at the balance sheet date and the amount can be estimated reliably, a provision has been recognised in these financial statements.
Nature of Obligation
The provision relates to potentially underpaid sales tax on certain supplies of services that were made during the year but were not invoiced including tax at the time of the transaction.
Basis of Measurement
The provision has been made based on a review of potentially affected sales transactions and tax rates applicable during the period. The amount represents the best estimate of the expenditure required to settle the obligation.
Timing of Outflows
A full assessment of the situation will need to be carried out and from there a final assessment will need to be ascertained from the tax authorities, at which point the company will settle the liability.
Uncertainties
There is uncertainty regarding the exact amount of potentially underpaid sales tax as it is subject to final confirmation by the tax authorities. Any changes to the provision would be expected to be recognised in the period the uncertainty is resolved.
Movements on provisions:
Sales taxes
£
Additional provisions in the year
12,500
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
6,000,000
6,000,000
60,000
60,000
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
At the balance sheet date the director Philippe Pierre Michelotti was owed £1,219 (2022: £31,036). This loan is repayable on demand and has no interest charges applied.
Philippe Pierre Michelotti also received fuel payments of £6,672 for use of his own car for business and was re-imbursed £16,356 for expenses incurred relating to travel, subsistence and fixed asset purchases.
Included in yacht expenses were amounts totalling £24,408 (2022: £3,965) invoiced to the company by Patrick Michelotti for yacht project management services. Patrick Michelotti is a relative of Philippe Pierre Michelotti.
Malph Srl, a company where Philippe Pierre Michelotti is a key principal has invoiced the company £15,148 (2022: £Nil) for management consultancy services, this is included within legal and professional fees.
Amounts totalling £32,623 (2022: £33,860) was invoiced to the company by Mattia Milanesio for consultancy services in the year and £185 expense re-inmursements. Mattia Milanesio is a shareholder in the company and also a key member of the management board charged with governance.
Included within motor expenses are mileage claims for Paollo Stella, shareholder, the total amount of £8,538 was accrued into the accounts and was paid to Paollo Stella after the year end.
ALPH CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
22
Cash generated from operations
2023
2022
£
£
Profit/(loss) for the year after tax
170,841
(9,162)
Adjustments for:
Taxation charged
122,152
19,742
Finance costs
6,074
7,651
Investment income
(272)
(52)
Depreciation and impairment of tangible fixed assets
5,767
1,746
Other gains and losses
-
27,312
Increase in provisions
12,500
-
Movements in working capital:
(Increase)/decrease in debtors
(172,946)
20,778
(Decrease)/increase in creditors
(27,549)
40,172
Cash generated from operations
116,567
108,187
23
Analysis of changes in net debt
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
53,341
44,492
97,833
Bank overdrafts
(848)
848
52,493
45,340
97,833
Borrowings excluding overdrafts
(145,231)
41,577
(103,654)
(92,738)
86,917
(5,821)
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