Company Registration No. 10506184 (England and Wales)
CRAVEN STREET CAPITAL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CRAVEN STREET CAPITAL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
J Samuels
S Appavoo
Secretary
I Nash
Company number
10506184
Registered office
3 Gough Square
3rd floor
London
EC4A 3DE
United Kingdom
Auditor
HW Fisher LLP
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
CRAVEN STREET CAPITAL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
CRAVEN STREET CAPITAL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The Group, through its direct subsidiaries Craven Street Capital Limited and Craven Street Wealth Limited, offers a portfolio of professional corporate and wealth management services to its clients. The principal activities include M&A, IPO, debt advisory, financial advice and wealth management planning.

In February 2023, the business acquired the trade and assets of Bernard Barrett Associates Limited through its wealth management subsidiary, Chaucer Newco Limited. Through this deal, the business managed to increase its assets under advice to over £1.2 billion.

During the FY 2023, the Group achieved one of its significant strategic milestones. A well-planned process of creating a single wealth management business by merging its four independent wealth management businesses into a single entity was completed in October 2023.

In the year to 31 December 2023, the Group had turnover of £9.5 million (2022: £8.6 million) and recorded a loss before tax of £1.4m (2022: £0.8m). Whilst the Group realised losses before tax, EBITDA (earnings before interest, tax, depreciation and amortisation) in 2023 increased to £2.4m (2022: £2.2m). The growth in turnover is primarily attributed to the Group maintaining higher level of assets under advice following acquisitions.

At 31 December 2023, the Group had net liabilities of £0.9m (2022: net assets of £0.7m). This is directly attributable to high interest charges and amortisation resulting from business acquisitions, as evidenced by the strong EBITDA levels.

Principal risks and uncertainties

The activities of the Group expose it to a variety of risks, both financial and operational. Those which have a material impact on the Group are as follows:

Economic downturn and market risk

Like all financial services business the Group is exposed to downturns in the market. The Group tries to mitigate this risk through a close focus on costs and through close relationships with its clients. The Group wealth management business operates an investment committee. The committee ensures the investment strategies are managed within the risk parameters.

Regulatory Risk

The Group’s trading subsidiaries require Financial Services Authority (FCA) approval to undertake its financial services business and breach of the FCA rules might lead to the withdrawal of approval. The Group continues to mitigate this risk by the way of an experienced and dedicated regulatory team and fostering a client centric and compliance-focused culture.

People Risk

As a group of service companies, loss of key adviser and management is also a risk. We mitigate this risk by how we manage and look after the staff, and this is evidenced by low levels of staff turnover and high levels of retention across the Group.

Interest and Cash Flow Risk

The Group is exposed to an economic risk linked to the variable rate of interest associated with the bank loan facility. This is mitigated by the forward projections for the business which highlight an improving cash position.

The Group utilises the same forward projections to monitor and manage the cash flow risks of the business.

 

Credit and Liquidity Risk

The directors do not consider credit risk or liquidity risk to be material risks to the business, given that the majority of income is received as recurring income from product providers.

 

Price Risk

The directors monitor the price competitiveness of the wealth and corporate finance businesses in line with the Group’s regulatory responsibilities. The directors consider that pricing in both parts of the business is in line with competitors operating in similar parts of the market in the UK.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

Key performance indicators are turnover, loss before tax and EBIDTA.

 

In the year to 31 December 2023, the Group had turnover of £9.5 million (2022: £8.6 million) and recorded a loss before tax of £1.4m (2022: £0.8m).

 

The business further uses EBIDTA as its other key performance indicator. EBIDTA for 2023 totaled £2.4m (2022: £2.2m).

 

The directors consider that turnover and EBITDA are the most suitable measures of scale and profitability of the Group. The directors monitor these KPIs regularly and note that the growth is in line with internal targets.

Future developments

Acquisitions of wealth management businesses will continue to form an important part of our strategy and are indeed necessary to achieve our ambitious medium-term target of becoming a top advice business in the Southeast of England.

In FY23, the Group completed a well-planned process of creating a single wealth management business. The integration of front and back-office systems will enable its clients and staff to benefit from new working practices.

The change has placed the Group wealth management arm into excellent position to integrate new acquisitions efficiently, with lower costs and enhanced margins.

Events after the balance sheet date

On 29 February 2024, Craven Street Wealth Limited completed the acquisition of the financial planning business of Punter Southall Defined Contribution Consulting Limited (subsequently renamed Pension Potential Limited), known as Punter Southall Aspire (and now trading as Craven Street Aspire). With the acquisition of this business, Craven Street Wealth has reached approximately £2.0 billion assets under advice. Please refer to the notes to these financial statements for further information.

On behalf of the board

S Appavoo
Director
21 August 2024
CRAVEN STREET CAPITAL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of the provision of corporate finance advice to UK and International companies and an independent financial intermediary providing investment advice and management services to private and corporate clients.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

J Samuels
S Appavoo
Auditor

The auditor, HW Fisher LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management objectives and policies, information on exposure to financial risk, future developments and events after the reporting date.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
S Appavoo
Director
21 August 2024
CRAVEN STREET CAPITAL HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

CRAVEN STREET CAPITAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CRAVEN STREET CAPITAL HOLDINGS LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CRAVEN STREET CAPITAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CRAVEN STREET CAPITAL HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the 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.

Detection of irregularities, including fraud

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.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

CRAVEN STREET CAPITAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CRAVEN STREET CAPITAL HOLDINGS LIMITED
- 7 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the those charged with governance of the group.

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

Use of our report

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

Gary Miller (Senior Statutory Auditor)
For and on behalf of HW Fisher LLP
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
21 August 2024
CRAVEN STREET CAPITAL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Turnover
3
9,450,395
8,610,394
Cost of sales
(560,532)
(507,485)
Gross profit
8,889,863
8,102,909
Administrative expenses
(8,368,465)
(7,589,221)
Other operating income
14,444
35,276
Operating profit
4
535,842
548,964
Interest payable and similar expenses
8
(1,977,005)
(1,331,565)
Loss before taxation
(1,441,163)
(782,601)
Tax on loss
9
(144,159)
(331,819)
Loss for the financial year
(1,585,322)
(1,114,420)
Loss for the financial year is attributable to:
- Owners of the parent company
(1,681,554)
(1,163,678)
- Non-controlling interests
96,232
49,258
(1,585,322)
(1,114,420)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(1,681,554)
(1,163,678)
- Non-controlling interests
96,232
49,258
(1,585,322)
(1,114,420)
CRAVEN STREET CAPITAL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
10
14,170,002
13,656,053
Tangible assets
11
71,537
80,536
Investments
12
29
29
14,241,568
13,736,618
Current assets
Debtors
14
1,670,088
1,362,818
Cash at bank and in hand
1,392,901
1,298,651
3,062,989
2,661,469
Creditors: amounts falling due within one year
15
(4,096,723)
(5,881,596)
Net current liabilities
(1,033,734)
(3,220,127)
Total assets less current liabilities
13,207,834
10,516,491
Creditors: amounts falling due after more than one year
16
(14,081,768)
(9,856,615)
Provisions for liabilities
Deferred tax liability
18
-
0
2,907
-
(2,907)
Net (liabilities)/assets
(873,934)
656,969
Capital and reserves
Called up share capital
20
123
118
Share premium account
158,285
158,285
Profit and loss reserves
(1,805,206)
(123,652)
Equity attributable to owners of the parent company
(1,646,798)
34,751
Non-controlling interests
772,864
622,218
(873,934)
656,969
The financial statements were approved by the board of directors and authorised for issue on 21 August 2024 and are signed on its behalf by:
21 August 2024
S Appavoo
Director
CRAVEN STREET CAPITAL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
109
109
Current assets
Debtors
14
2,973,885
2,683,384
Creditors: amounts falling due within one year
15
(1,011,971)
(1,000,000)
Net current assets
1,961,914
1,683,384
Total assets less current liabilities
1,962,023
1,683,493
Creditors: amounts falling due after more than one year
16
(1,667,384)
(1,425,883)
Net assets
294,639
257,610
Capital and reserves
Called up share capital
20
123
118
Share premium account
158,285
158,285
Profit and loss reserves
136,231
99,207
Total equity
294,639
257,610

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £37,024 (2022 - £44,750 profit).

The financial statements were approved by the board of directors and authorised for issue on 21 August 2024 and are signed on its behalf by:
21 August 2024
S Appavoo
Director
Company Registration No. 10506184
CRAVEN STREET CAPITAL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
108
8,295
1,040,026
1,048,429
549,158
1,597,587
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(1,163,678)
(1,163,678)
49,258
(1,114,420)
Issue of share capital
20
10
149,990
-
150,000
-
150,000
Acquisition of subsidiary
-
-
-
-
23,802
23,802
Balance at 31 December 2022
118
158,285
(123,652)
34,751
622,218
656,969
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(1,681,554)
(1,681,554)
96,232
(1,585,322)
Issue of share capital
20
5
-
0
-
5
-
5
Acquisition of subsidiary
-
-
-
-
54,414
54,414
Balance at 31 December 2023
123
158,285
(1,805,206)
(1,646,798)
772,864
(873,934)
CRAVEN STREET CAPITAL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
108
8,295
54,457
62,860
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
44,750
44,750
Issue of share capital
20
10
149,990
-
150,000
Balance at 31 December 2022
118
158,285
99,207
257,610
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
37,024
37,024
Issue of share capital
20
5
-
0
-
5
Balance at 31 December 2023
123
158,285
136,231
294,639
CRAVEN STREET CAPITAL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(1,443,405)
102,262
Interest paid
(1,252,197)
(717,930)
Income taxes refunded/(paid)
79,755
(429,819)
Net cash outflow from operating activities
(2,615,847)
(1,045,487)
Investing activities
Purchase of business
(1,485,452)
(1,342,312)
Purchase of tangible fixed assets
(15,008)
(40,092)
Net cash used in investing activities
(1,500,460)
(1,382,404)
Financing activities
Proceeds from issue of shares
5
150,000
Proceeds of new bank loans
5,364,548
2,493,439
Repayment of bank loans
(1,153,996)
(900,000)
Net cash generated from financing activities
4,210,557
1,743,439
Net increase/(decrease) in cash and cash equivalents
94,250
(684,452)
Cash and cash equivalents at beginning of year
1,298,651
1,983,103
Cash and cash equivalents at end of year
1,392,901
1,298,651
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Craven Street Capital Holdings Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 3 Gough Square, 3rd floor, London, United Kingdom, EC4A 3DE.

 

The group consists of Craven Street Capital Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The financial statements of the company are consolidated in the financial statements of Craven Street Capital Holdings Limited. These consolidated financial statements are available from the UK Registrar of Companies.

1.2
Business combinations

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

 

 

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

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

 

All financial statements are made up to 31 December 2023, with the exception of Tarvos Wealth Limited with accounts drawn up to 31 October 2023. The results for the period 1 January 2023 to 31 December 2023 of Tarvos Wealth Limited have been included in these financial statements.

 

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

 

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

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

1.4
Going concern

The financial statements have been prepared on a going concern basis. The directors have prepared long term forecasts and at the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Should the necessity arise, there are sufficient third party cash facilities available to the group. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

Retainer fees are recognised over the period of the agreement. Fees in respect of specific projects are recognised once the contracts are exchanged and in the opinion of directors the company's involvement is over 95% complete and completion is guaranteed.

 

Where the substance of a contract is that a right to consideration doesn't arise until the occurrence of a critical event, revenue isn't recognised until that event occurs. This applies to the contracts where the right to consideration is conditional or contingent on a specified future event or outcome, the occurrence of which is outside of the company's control. Costs incurred on such fees are recorded as work in progress on the balance sheet if it is probable the costs will be recovered under the contract until the revenue is recognised. Work in progress is calculated based on the stage of completion of the project and the expected profit margin on that project as a proportion of total revenue.

 

Commissions and adviser charging fees are recognised once the client has formally signed and agreed to take up the investment advice given. Fee income is recognised as the contract progresses and to the extent that the business obtains the right to consideration in exchange for performance of its activities.

 

The revenue recognised is measured by reference to the amounts likely to be chargeable to clients, less a suitable allowance to recognise the uncertainties remaining in the completion of the obligations. Contingent income is recognised only when the contingent element is assured.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.6
Intangible fixed assets - goodwill

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

 

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

1.7
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:

Fixtures, fittings and equipment
25% reducing balance / 25% - 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

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

 

Shares in unlisted investments are held at cost. The directors do not have sufficient information to value the shares at fair market value.

 

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

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

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

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

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.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Recoverability of amounts due from group fellow undertakings

Entities within the group have amounts due to and from fellow group undertakings from the process of maintaining appropriate levels of working capital and to meet regulatory liquidity requirements.

The directors use their judgement in applying accounting policies in relation to the recoverability of the balance when preparing the financial statements. In making their judgement, the directors use their experience, knowledge of the wider group and consider the industry in which they operate and future events, plans and forecasts. After assessment, the directors concluded the entities within the Group will be able to recover its debtors balances in full and no provisions have been made against the amounts outstanding as at 31 December 2023 (2022: £nil).

Calculation and valuation of goodwill

The group recognises goodwill arising from business combinations. The cost of the business combinations include initial cash consideration and other costs to the group, as well as the calculation of deferred consideration payable. The calculation of the deferred consideration requires judgements and estimates to be made.

The deferred consideration on the business combinations is payable subject to performance targets being met. The likelihood of targets being achieved in full is estimated based on the anticipated future performance of the business acquired and a probability of the necessary performance being achieved.

The expected future value of the deferred consideration is discounted from the anticipated date of payment to the present value. The directors estimate an appropriate discount rate based on the interest rates offered under their current lending facilities. The difference between the present value at acquisition and the total undiscounted deferred consideration is recognised as a finance charge between the date of acquisition and the expected date of settlement.

At the end of each reporting year, the directors review the recoverable value of the goodwill. The directors estimate the future level of profitability expected from the acquired businesses by using appropriate valuation methods including using forecasts of expected future results and cash flows and expected client attrition rates as well as any legal and regulatory or contractual provisions.

The group as a default amortises acquired goodwill over a ten-year period, unless it has been determined through the forecasting of expected future results and other factors that the useful life of the acquired business will be lower than the ten-year period.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revenue recognition, including work in progress

The group provides professional services to clients through its corporate finance and wealth management subsidiaries.

Work in progress is recognised where the substance of a contract is that the right to consideration doesn't arise until the occurrence of a critical event. The total revenue is calculated using the signed agreement and information provided by the client, and is deferred until that event occurs. The final settlement of fees may vary from the calculated recognition fees if the assignment is not completed or requires a higher level of work. The change is charged to the financial statement in the subsequent periods. Costs incurred on such fees are recorded as work in progress. The directors, using their knowledge and experience of the work performed, estimate the stage of completion of the project and the expected profit margin on that project and apply this to the estimated value of work undertaken to calculate the work in progress to be recorded.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Corporate finance
1,154,676
1,896,000
Wealth management
8,295,719
6,714,394
9,450,395
8,610,394
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
9,450,395
8,610,394
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Research and development costs
19,538
39,075
Depreciation of owned tangible fixed assets
35,984
23,215
Loss on disposal of tangible fixed assets
11,642
-
Amortisation of intangible assets
1,852,110
1,617,917
Operating lease charges
235,532
230,261
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
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 group and company
32,500
25,000
Audit of the financial statements of the company's subsidiaries
18,000
30,000
50,500
55,000
For other services
Taxation compliance services
14,000
9,900
Other taxation services
2,700
1,950
Services relating to corporate finance transactions
-
12,500
All other non-audit services
28,283
19,776
44,983
44,126
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Advisors
17
16
-
-
Support and administrative
45
39
-
-
Total
62
55
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,937,420
3,584,216
-
0
-
0
Social security costs
438,071
368,187
-
-
Pension costs
273,550
189,603
-
0
-
0
4,649,041
4,142,006
-
0
-
0
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
937,319
925,509
Company pension contributions to defined contribution schemes
96,111
39,009
1,033,430
964,518
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
304,431
291,250
Company pension contributions to defined contribution schemes
18,875
18,057
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
1,252,197
643,280
Unwinding of loan arrangement fees
111,852
-
0
Other interest on financial liabilities
369,069
221,883
Unwinding of discount on provisions
243,887
391,752
Other interest
-
74,650
Total finance costs
1,977,005
1,331,565
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
216,119
371,156
Adjustments in respect of prior periods
(69,043)
(36,843)
Total current tax
147,076
334,313
Deferred tax
Origination and reversal of timing differences
(2,917)
(2,494)
Total tax charge
144,159
331,819
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 24 -

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

2023
2022
£
£
Loss before taxation
(1,441,163)
(782,601)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(338,962)
(148,694)
Tax effect of expenses that are not deductible in determining taxable profit
502,765
391,595
Tax effect of income not taxable in determining taxable profit
-
0
(24,757)
Adjustments in respect of prior years
(69,043)
26,606
Effect of change in corporation tax rate
(3,134)
3,789
Permanent capital allowances in excess of depreciation
(98)
(2,360)
Movement in deferred tax not recognised
40,017
(18,283)
Other adjustments
12,614
103,923
Taxation charge
144,159
331,819

Factors that may affect future tax charges

 

Changes to the UK corporation tax rates were substantially enacted as part of the 2021 budget on 3 March 2021. This included an increase to the main rate from 19% to 25% from April 2023. The group will be taxed at a rate of 25% unless its profits are sufficiently low enough to qualify for a lower rate of tax, the lowest being 19%.

 

Where applicable, deferred taxes at the balance sheet date have been measured using a tax rate of 25% to reflect the rate that the timing differences are likely to unwind and are reflected in the financial statements.

10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 (as restated)
16,482,741
Additions - business combinations
3,030,132
Remeasurement of cost of business combinations
(664,073)
At 31 December 2023
18,848,800
Amortisation and impairment
At 1 January 2023
2,826,688
Amortisation charged for the year
1,852,110
At 31 December 2023
4,678,798
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Intangible fixed assets
(Continued)
- 25 -
Carrying amount
At 31 December 2023
14,170,002
At 31 December 2022 (as restated)
13,656,053
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

In the financial statements for the year ended 31 December 2022, loan arrangement fees of £254,500 were included within the cost of business combinations. This has been reclassified and offset against bank loans in these financial statements and will be amortised over the terms of the loans.

 

The remeasurement of cost of business combinations relates to an adjustment to the deferred consideration on the acquisition of Christchurch Investment Management Limited of £514,408 and Tarvos Wealth Limited of £149,665.

 

11
Tangible fixed assets
Group
Fixtures, fittings and equipment
£
Cost
At 1 January 2023
252,066
Additions
15,008
Business combinations
11,977
At 31 December 2023
279,051
Depreciation and impairment
At 1 January 2023
171,530
Depreciation charged in the year
35,984
At 31 December 2023
207,514
Carrying amount
At 31 December 2023
71,537
At 31 December 2022
80,536
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
109
109
Unlisted investments
29
29
-
0
-
0
29
29
109
109
Movements in fixed asset investments
Group
Investments other than loans
£
Cost or valuation
At 1 January 2023 and 31 December 2023
29
Carrying amount
At 31 December 2023
29
At 31 December 2022
29

The shares in unlisted investments relates to a 2.9% shareholding in GGH (Jersey) Limited. The Directors do not have sufficient information to estimate the fair value of this shareholding. Therefore, the investment is held at cost.

Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 January 2023 and 31 December 2023
109
Carrying amount
At 31 December 2023
109
At 31 December 2022
109
13
Subsidiaries

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

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Craven Street Capital Limited
3 Gough Square, 3rd Floor, London, EC4A 3DE
Ordinary
100.00
-
Craven Street Wealth Limited
3 Gough Square, 3rd Floor, London, EC4A 3DE
Ordinary
82.00
-
Christchurch Investment Management Limited
3 Gough Square, 3rd Floor, London, EC4A 3DE
Ordinary
-
82.00
Chaucer Newco Limited
3 Gough Square, 3rd Floor, London, EC4A 3DE
Ordinary
-
82.00
Craven Street Financial Planning Limited
3 Gough Square, 3rd Floor, London, EC4A 3DE
Ordinary
-
82.00
Tarvos Wealth Limited
Graylaw House, 20-22 Watling Street, Canterbury, CT1 2UA
Ordinary
-
82.00
Tarvos Holdings Limited
20-22 Watling Street, Canterbury, CT1 2UA
Ordinary
-
82.00
Kreston Reeves Financial Planning Services Limited
37 St. Margarets Street, Canterbury, CT1 2TU
Ordinary
-
42.00
Bernard Barrett Associates Limited
3 Gough Square, 3rd Floor, London, England, EC4A 3DE
Ordinary
-
82.00

Craven Street Financial Planning Limited owns 50% of the total share capital of Kreston Reeves Financial Planning Services Limited, but 51% of the voting rights. Thus, Kreston Reeves Financial Planning Services Limited is a subsidiary on the basis of control and has been consolidated in these financial statements.

14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
433,319
252,382
-
0
-
0
Work in progress
-
0
184,091
-
0
-
0
Unpaid share capital
24
21
-
0
-
0
Corporation tax recoverable
-
0
403,258
-
0
-
0
Amounts owed by group undertakings
-
-
71,529
102,519
Other debtors
42,655
53,622
8,306
8,301
Prepayments and accrued income
1,194,090
469,444
-
0
-
0
1,670,088
1,362,818
79,835
110,820
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
2,894,050
2,572,564
Total debtors
1,670,088
1,362,818
2,973,885
2,683,384
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
as restated
Notes
£
£
£
£
Bank loans
17
1,333,749
1,179,265
-
0
-
0
Trade creditors
94,051
49,372
444
-
0
Amounts owed to group undertakings
-
0
-
0
1,000,000
1,000,000
Corporation tax payable
206,223
382,930
11,527
-
0
Other taxation and social security
160,517
82,754
-
-
Other creditors
1,569,360
3,604,469
-
0
-
0
Accruals and deferred income
732,823
582,806
-
0
-
0
4,096,723
5,881,596
1,011,971
1,000,000

Group

Included in other creditors is deferred consideration of £79,660 (2022: £378,650) relating to the acquisition of Christchurch Investment Management Limited, £nil (2022: £2,727,188) relating to the acquisition of Reeves + Neylan Financial Services Limited and £576,544 (2022: £403,196) relating to the acquisition of Tarvos Wealth Limited. See note 16 for further details.

 

Also included in other creditors is deferred consideration of £845,590 (2022: £nil) relating to the acquisition of Bernard Barrett Associates Limited during the year. See note 21 for further details.

 

Also included in other creditors is a clawback provision on indemnity insurance. The company received commissions from insurance companies under indemnity terms. The indemnity period over which income is derived is dependent upon the type of contract taken out by the client. If a contract is cancelled by the client during this indemnity period the company must repay to the insurance company that part of the commission which relates to the unexpired term of the indemnity period. The company takes these reclaims, where they occur, directly to the income statement at the time they occur.

 

Company

Amounts due to group undertakings are unsecured and interest free. No agreement is in place and thus the balance is deemed to be repayable on demand.

16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
as restated
Notes
£
£
£
£
Bank loans and overdrafts
17
9,879,094
5,711,174
-
0
-
0
Other borrowings
17
3,170,953
2,801,883
1,667,384
1,425,883
Other creditors
1,031,721
1,343,558
-
0
-
0
14,081,768
9,856,615
1,667,384
1,425,883
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Creditors: amounts falling due after more than one year
(Continued)
- 29 -

Group

Included within other borrowings are redeemable loan notes of £1,503,569 (2022: £1,376,000). The loan notes attract interest 8% per annum for the first 5 years from 2 March 2021, and 10% per annum thereafter. The loan notes are redeemable on Exit. Exit is defined as the sale of the participating companies.

 

Included within other creditors is deferred consideration of £391,924 (2022: £811,336) relating to the acquisition of Christchurch Investment Management Limited. The total undiscounted deferred consideration recognised on acquisition was £1,952,000 payable in four annual instalments from twelve months after the date of acquisition. The future value of the deferred consideration has been calculated using a discount rate of 8%. The difference between the present value at acquisition and the total undiscounted deferred consideration is recognised as a finance charge between the date of acquisition and the expected date of settlement.

 

Included within other creditors is deferred consideration of £nil (2022: £532,222) relating to the acquisition of Tarvos Wealth Limited. The total undiscounted deferred consideration recognised on acquisition was £998,750 payable in two annual instalments from twelve months after the date of acquisition. The future value of the deferred consideration has been calculated using a discount rate of 8.5%. The difference between the present value at acquisition and the total undiscounted deferred consideration is recognised as a finance charge between the date of acquisition and the expected date of settlement.

 

Included within other creditors is deferred consideration of £639,797 (2022: £nil) relating to the acquisition of Bernard Barrett Associates Limited in the year. See note 21 for further details.

 

Group and Company

Included within other borrowings is an unsecured loan from a related party of £1,667,384 (2022: £1,425,883). The loan attracts interest at 16.66% per annum and matures in 2025.

 

Amounts included above which fall due after five years are as follows:
Payable other than by instalments
1,503,569
1,376,000
-
-
17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
as restated
£
£
£
£
Bank loans
11,212,843
6,890,439
-
0
-
0
Loans from related parties
1,667,384
1,425,883
1,667,384
1,425,883
Other loans
1,503,569
1,376,000
-
0
-
0
14,383,796
9,692,322
1,667,384
1,425,883
Payable within one year
1,333,749
1,179,265
-
0
-
0
Payable after one year
13,050,047
8,513,057
1,667,384
1,425,883
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Loans and overdrafts
(Continued)
- 30 -

Group

In the financial statements for the year ended 31 December 2022, loan arrangement fees of £254,500 were included within the cost of business combinations. The total of these arrangement fees has been reclassified and offset against bank loans in these financial statements.

 

The bank loans are held with Shawbrook Bank Limited. The outstanding capital amount as at 31 December 2023 for each Facility in use of the bank loan is as follows:

 

Facility A - £5,230,728 (2022: £1,905,150). Interest on Facility A is charged at 5.95% per annum plus the higher of SONIA and 0.25% per annum. Facility A is repayable in monthly instalments of £106,750.

 

Facility B - £6,238,573 (2022: £2,800,000). Interest on Facility B is charged at 7.25% per annum plus the higher of SONIA and 0.25% per annum. Facility B is repayable in full in 2026.

 

Facility C - £nil (2022: £1,352,289). Interest on facility C is charged at 7.25% per annum plus the higher of SONIA and 0.25% per annum. Facility C is repayable in monthly instalments of £35,109.

 

Facility E - £nil (2022: £487,500). Interest on facility E is charged at 6.95% per annum plus the higher of SONIA and 0.25% per annum. Facility E is repayable in monthly instalments of £12,500.

 

Facility F - £nil (2022: £600,000). Interest on Facility F is charged at 7.25% per annum plus the higher of SONIA and 0.25% per annum. Facility F is repayable in full in 2026.

 

During the year, the balances relating to facilities C, E and F have been transferred to facilities A and B.

 

Other loans relate to redeemable loan notes of £1,503,569 (2022: £1,376,000). The loan notes attract interest 8% per annum for the first 5 years from 2 March 2021, and 10% per annum thereafter. The loan notes are redeemable on Exit. Exit is defined as the sale of the participating companies.

 

Group and Company

Loans from related parties relate to an unsecured loan of £1,667,384 (2022: £1,425,883). The loan attracts interest at 16.66% per annum and matures in 2025.

18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
-
3,292
Short term timing differences
-
(385)
-
2,907
The company has no deferred tax assets or liabilities.
CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Deferred taxation
(Continued)
- 31 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
2,907
-
Credit to profit or loss
(2,907)
-
Asset at 31 December 2023
-
-
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
273,550
189,603

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

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
11,500
11,000
115
110
Growth shares of 1p each
800
800
8
8
12,300
11,800
123
118

On 14 October 2022, the Company issued 1,000 ordinary shares at £150 per share, giving rise to additional share premium of £149,990.

 

In the financial statements for the year to 31 December 2023, share capital has increased by £5. This relates to corrections filed at Companies House on 27 March 2024 relating to the period from 2018 to 2023.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
21
Acquisition of a business

On 28 February 2023 the group acquired 100 percent of the issued capital of Bernard Barrett Associates Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
11,977
-
11,977
Trade and other receivables
65,656
-
65,656
Cash and cash equivalents
420,607
-
420,607
Trade and other payables
(211,849)
-
(211,849)
Total identifiable net assets
286,391
-
286,391
Non-controlling interests
(54,414)
Goodwill
3,030,132
Total consideration
3,262,109
The consideration was satisfied by:
£
Cash
1,620,000
Working capital adjustment cash payment
153,629
Deferred consideration
1,356,050
Capitalised expenses
132,430
3,262,109
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
267,531
Profit after tax
133,482

The goodwill arising on the acquisition of the business is attributable to the anticipated profitability of the company's trade and the future operating synergies from the combination. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

The total undiscounted deferred consideration is £1,580,000 payable in two annual instalments from twelve months after the date of acquisition. The future value of the deferred consideration has been calculated using a discount rate of 11.18%. The difference between the present value at acquisition and the total undiscounted deferred consideration is recognised as a finance charge between the date of acquisition and the expected date of settlement. Deferred consideration is included within other creditors in the financial statements.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
22
Financial commitments, guarantees and contingent liabilities

On 2 March 2021, the company entered into a cross guarantee and debenture of the bank borrowings of a fellow group company. At 31 December 2023, the company’s maximum potential liability under this arrangement was £11,469,301 (2022: £7,161,889).

 

S479 Parent Company Guarantee

For the financial year ended 31 December 2023, the below subsidiaries are exempt from the requirements stipulating that they be audited since they fulfil all the conditions for exemption under section 479A of the Companies Act 2006.

 

 

The outstanding liabilities at the balance sheet date of the above subsidiary undertakings have been guaranteed by Craven Street Capital Holdings Limited pursuant to s479A to s479C of the Companies Act 2006.

23
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
149,728
117,121
-
-
Between two and five years
-
27,619
-
-
149,728
144,740
-
-
24
Related party transactions
Transactions with related parties

During the year the group made sales of £685,000 (2022: £390,000) to related parties, of which £378,000 (2022: £210,000) was outstanding at year end. The group also paid management charges of £21,912 (2022: £nil) to related parties, of which £5,824 (2022: £nil) was outstanding at the year end.

 

Included within other borrowings is an unsecured loan of £1,667,384 (2022: £1,425,883). The loan attracts interest at 16.66% per annum and matures in 2025.

CRAVEN STREET CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
25
Events after the reporting date

On 29 February 2024, Craven Street Wealth Limited acquired the financial planning division of Punter Southall Defined Contribution Consulting Limited (subsequently renamed Pension Potential Limited), known as Punter Southall Aspire (and now trading as Craven Street Aspire), for initial cash and share consideration of £5.75m. At the time of approving the financial statements, the directors' best estimate of the total consideration, including any deferred contingent consideration, is £8.0m. Craven Street Wealth Limited borrowed a further £2.8m from its existing facilities with Shawbrook Bank Limited to fund the acquisition of Punter Southall Aspire. Interest is charged at 7.25% per annum plus the higher of SONIA and 0.25% per annum.

 

On 3 May 2024, the share capital of Craven Street Capital Holdings Limited was reduced from £123, divided into 11,500 ordinary shares of £0.01 each and 800 growth shares of £0.01 each, to £97.66, divided into 9,316 ordinary shares of £0.01 each and 450 growth shares of £0.01 each, by cancelling and extinguishing 2,184 ordinary shares of £0.01 each 350 growth shares of £0.01 each, all of which were held in treasury as at 31 December 2023.

 

On 23 May 2024, Craven Street Wealth Limited borrowed a further £1.1m from its existing facilities with Shawbrook Bank Limited to fund the payment of deferred consideration payable on the acquisitions of Christchurch Investment Management Limited and Bernard Barrett Associates Limited. Interest is charged at 7.25% per annum plus the higher of SONIA and 0.25% per annum.

26
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Loss for the year after tax
(1,585,322)
(1,114,420)
Adjustments for:
Taxation charged
144,159
331,819
Finance costs
1,977,005
1,331,565
Amortisation and impairment of intangible assets
1,852,110
1,617,917
Depreciation and impairment of tangible fixed assets
35,984
23,215
Movements in working capital:
Increase in debtors
(645,142)
(30,198)
Decrease in creditors
(3,222,199)
(2,057,636)
Cash (absorbed by)/generated from operations
(1,443,405)
102,262
27
Analysis of changes in net debt - group
1 January 2023
Cash flows
Other non-cash changes
31 December 2023
£
£
£
£
Cash at bank and in hand
1,298,651
94,250
-
1,392,901
Borrowings excluding overdrafts
(9,692,322)
(4,210,552)
(480,922)
(14,383,796)
(8,393,671)
(4,116,302)
(480,922)
(12,990,895)
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