Company registration number 03173991 (England and Wales)
BLACKFRIARS ASSET MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BLACKFRIARS ASSET MANAGEMENT LIMITED
COMPANY INFORMATION
Directors
Mr HA Simon
Mr A Hicks
Company number
03173991
Registered office
Landmark 4th Floor
78, Cannon Street
London
England
EC4N 6HL
Auditor
Lindeyer Francis Ferguson Limited
North House
198 High Street
Tonbridge
Kent
TN9 1BE
Business address
Landmark 4th Floor
78, Cannon Street
London
England
EC4N 6HL
BLACKFRIARS ASSET MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 18
BLACKFRIARS ASSET MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The Company's key financial and other performance indicators during the year were as follows:
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Net assets Assets under investment advisory services | | | |
Turnover increased by 17% during the year, mainly as a result of the markets picking up after the decline in the previous year.
Assets under investment advisory services increased by 20% during the year, mainly driven by market effect.
Principal risks and uncertainties
The principal risks and uncertainties facing the company concern the ability of the company to execute its business strategy, which have been detailed in the Directors' Report.
Future developments
The company is looking to launch or advise a new fund for the acquisition of asset managers and wealth management companies in the UK.
Mr HA Simon
Director
24 April 2024
BLACKFRIARS ASSET MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of Blackfriars Asset Management Limited is investment advisory services.
The Company is authorised and regulated by the Financial Conduct Authority (FCA) pursuant to the Financial Services & Markets Act 2000. All of the Company's activities are regulated and conducted within the scope of permissions granted to the Company by the FCA and have been throughout the year.
The Company is a limited company domiciled in the UK.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr HA Simon
Mr A Hicks
Results and dividends
The loss for the year after tax amounted to £98,796 (2022: loss of £117,561).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Capital resources and surplus
As at 31 December 2023, the capital resources and surplus capital of the Company were as follows:
Capital Components £'000
Total Tier Capital 101
Permanent Minimum Requirement (PMR) 75
Surplus capital over PMR 26
Percentage coverage 134.7%
Going concern risk
The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the strategic report on page 1.
The Directors have performed an annual going concern assessment, under various stress test scenarios. The Company has obtained a letter of support from The Hamon Investment Group Pte Limited, the parent company of Blackfriars Asset Management Limited for a period of at least twelve months after the date that the financial statements are signed.
Based on the assessment of the Company's financial position, liquidity and capital, the Directors have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the Company to continue as a going concern for a period of at least twelve months after the date that the financial statements are signed, or to conduct an orderly wind-down of the Company should that decision be taken. Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Liquidity risk
Liquidity risk is the risk that a firm, although solvent, either does not have available sufficient financial resources to enable it to meet its obligations as they fall due or can secure such resources only at excessive cost. The Company has a minimal exposure to liquidity risk. The Company maintains a high degree of liquidity at all times, monitors its liquidity position regularly, and ensures that sufficient funds can be withdrawn from UK bank accounts to ensure that it can meet its liabilities as they fall due.
BLACKFRIARS ASSET MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Market risk
The company has a minimal exposure to market risk. The Company does not trade on its own account or underwrite issues of financial instruments. Nor does it provide seed capital for product development purposes.
The Company has a market risk exposure to foreign exchange rate movements. This is due to the income of the Company being denominated in various currencies, of which the main are US dollars and euros, whereas the bulk of expenses are denominated in sterling. This risk is mitigated by managing the level of foreign currency held by converting excess currency to sterling.
Credit Risk
The Company has a minimal exposure to credit risk. The risk of non-payment of investment management fees is mitigated by the use of independent administrators for the funds under management. The Company's cash balances are deposited with highly rated regulated UK banks. The Company uses the standardised approach in calculating its credit risk and calculates its credit risk requirement on the following asset classes: cash, fees receivable and other debtors, and fixed assets.
Compliance Risk
The Company has greater exposure to compliance risk, due to the company being authorised and regulated by the FCA and is also a registered investment adviser with the United States Securities and Exchange Commission and is therefore subject to a high level of regulation and legislation. The risk of non compliance is mitiagated due to the comprehensive set of policies and procedures they have in place, including a Compliance Manual, which describes how the firm seeks to adhere to all of its regulatory obligations. These are reviewed on an annual basis and are updated as and when required following changes to regulation, business practice or industry best practice.
Remuneration code
As of 31 December 2023 the firm was an MIFIDPRU Limited Licence £75K firm. Under the provisions of the FCA's Remuneration Code the Company is a Level 3 firm. The Company adopts a total reward and pay for performance remuneration philosophy which aims to support the business strategy, objectives and long-term interests. Any remuneration elements awarded in respect of bonus is discretionary based on individual and business unit performance together with other factors as determined from time to time in the context of the Company's operating plans and results.
The Company has designed its remuneration structures proportionate to the scale and complexity of the business and in a manner to promote effective risk management and to discourage risk taking in excess of the firm's stated risk tolerance. Due to the size and nature of the Company, remuneration policy is determined by the Board of Directors rather than by a separate Remuneration Committee and it is responsible for determining the level and structure of the firm's overall remuneration arrangements. The Board aims to secure and retain sufficiently skilled employees in order to deliver the best levels of client service.
The Company does not currently operate a Long-Term Incentive Plan that could incentivise staff for future performance. However, a discretionary bonus is payable dependent on Company performance and the contribution made by the individual concerned.
Aggregate remuneration for Remuneration Code Staff for the year ended 31 December 2023 was:
| | Discretionary remuneration | |
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Auditor
The auditor, Lindeyer Francis Ferguson Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
BLACKFRIARS ASSET MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Mr HA Simon
Director
24 April 2024
BLACKFRIARS ASSET MANAGEMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
BLACKFRIARS ASSET MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLACKFRIARS ASSET MANAGEMENT LIMITED
- 6 -
Opinion
We have audited the financial statements of Blackfriars Asset Management Limited (the 'company') for the year ended 31 December 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 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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
We draw attention to note 1.2 and note 18 of the financial statements, which describes the company’s ability to continue as a 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.
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.
BLACKFRIARS ASSET MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLACKFRIARS ASSET MANAGEMENT LIMITED (CONTINUED)
- 7 -
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.
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.
We obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the company, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified the Companies Act 2006.
We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the company's operations and to avoid material penalties, including data protection regulations and FCA regulation.
Having reviewed the laws and regulations applicable to the company, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:
Selected a team with sector experience was selected for completing the audit;
Obtained an understanding of the company's procedures for ensuring compliance with laws and regulations;
Obtained and reviewed internal policy and procedure documents;
Made enquiries of management and the directors regarding whether they were aware of any actual or suspected incidences of non-compliance with laws and regulations;
Obtained and reviewed correspondence with the regulator;
Reviewed legal expenses accounts for indications of any possible non-compliance; and
Reviewed the completeness and accuracy of any disclosures made in the financial statements
BLACKFRIARS ASSET MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLACKFRIARS ASSET MANAGEMENT LIMITED (CONTINUED)
- 8 -
We assessed the susceptibility of the company financial statements to material misstatement, including considering how fraud might occur. This was performed by:
Making an assessment of the company's systems & controls, including identifying any weaknesses and considering the risk of management override of controls;
Assessing the susceptibility of the company's financial statements to material misstatements, including considering how fraud could occur;
Considering if there are any incentives or opportunities for management to manipulate financial results;
Obtaining and evaluating the directors' assessment of the risk of fraud, and enquiring as to whether they were aware of any actual or suspected fraud;
Reviewing the accounting policies and accounting estimates for signs of management bias;
Identifying key risks relating to irregularities including revenue recognition and fraud; and
Reviewing journal entries for signs of management bias or override of controls.
We then designed audit procedures in response to the risks identified, including performing substantive testing on all material income streams.
The audit has been planned and performed in in accordance with auditing standards, however, because of the inherent limitations of audit procedures there remains a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. There are inherent difficulties in detecting irregularities, and irregularities that result from fraud may be more difficult to detect than irregularities that result from error, for example due to concealment, override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less audit procedures are able to identify it.
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.
Jonathan Healey FCA
Senior Statutory Auditor
For and on behalf of Lindeyer Francis Ferguson Limited
24 April 2024
Chartered Accountants
Statutory Auditor
North House
198 High Street
Tonbridge
Kent
TN9 1BE
BLACKFRIARS ASSET MANAGEMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
3,967
3,444
Administrative expenses
(103,698)
(121,118)
Operating loss
4
(99,731)
(117,674)
Interest receivable and similar income
7
935
113
Loss before taxation
(98,796)
(117,561)
Tax on loss
8
Loss for the financial year
(98,796)
(117,561)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BLACKFRIARS ASSET MANAGEMENT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
10
21,655
21,274
Cash at bank and in hand
105,466
85,265
127,121
106,539
Creditors: amounts falling due within one year
11
(26,358)
(26,980)
Net current assets
100,763
79,559
Capital and reserves
Called up share capital
13
11,684,700
11,564,700
Profit and loss reserves
(11,583,937)
(11,485,141)
Total equity
100,763
79,559
The financial statements were approved by the board of directors and authorised for issue on 24 April 2024 and are signed on its behalf by:
Mr HA Simon
Director
Company registration number 03173991 (England and Wales)
BLACKFRIARS ASSET MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
11,444,700
(11,367,580)
77,120
Year ended 31 December 2022:
Loss and total comprehensive income
-
(117,561)
(117,561)
Issue of share capital
13
120,000
-
120,000
Balance at 31 December 2022
11,564,700
(11,485,141)
79,559
Year ended 31 December 2023:
Loss and total comprehensive income
-
(98,796)
(98,796)
Issue of share capital
13
120,000
-
120,000
Balance at 31 December 2023
11,684,700
(11,583,937)
100,763
BLACKFRIARS ASSET MANAGEMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
16
(100,734)
(106,464)
Investing activities
Interest received
935
113
Net cash generated from investing activities
935
113
Financing activities
Proceeds from issue of shares
120,000
120,000
Net cash generated from financing activities
120,000
120,000
Net increase in cash and cash equivalents
20,201
13,649
Cash and cash equivalents at beginning of year
85,265
71,616
Cash and cash equivalents at end of year
105,466
85,265
BLACKFRIARS ASSET MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information
Blackfriars Asset Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is Landmark 4th Floor, 78, Cannon Street, London, England, EC4N 6HL.
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 and certain financial instruments at fair value. 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 and other sales related taxes.
Advisory fees are fees paid for the management of investment portfolios. These are recognised as services are provided and are calculated based on various formulae linked to the value of the portfolios.
Advisory fees are recognised on an accrual basis.
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
3-5 Years
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.
1.5
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.
BLACKFRIARS ASSET MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Financial instruments
The company only has financial instruments which are classified as basic financial instruments.
Short-term debtors and creditors are measured at settlement value. Any losses from impairment are recognised in income and expenditure.
Creditors due after more than one year are measured initially at transaction price and subsequently at amortised cost, using the effective interest method.
1.7
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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
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 leases asset are consumed.
1.10
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 and other revenue
2023
2022
£
£
Turnover analysed by geographical market
Asia
3,967
3,444
BLACKFRIARS ASSET MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 15 -
2023
2022
£
£
Other revenue
Interest income
935
113
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
423
(1,451)
Depreciation of owned tangible fixed assets
-
197
Operating lease charges
2,295
2,528
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
10,000
10,300
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Investment
1
1
Directors
2
3
Total
3
4
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
24,750
36,135
Pension costs
1,980
2,891
26,730
39,026
BLACKFRIARS ASSET MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
935
113
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
935
113
8
Taxation
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
(98,796)
(117,561)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(18,771)
(22,337)
Unutilised tax losses carried forward
21,158
25,051
Permanent capital allowances in excess of depreciation
(2,387)
(2,911)
Depreciation on assets not qualifying for tax allowances
197
Taxation charge for the year
-
-
The company has estimated tax losses of £27,957,235 (2022: £27,845,874) available to carry forward against future trading profits.
9
Tangible fixed assets
Computers
£
Cost
At 1 January 2023 and 31 December 2023
33,852
Depreciation and impairment
At 1 January 2023 and 31 December 2023
33,852
Carrying amount
At 31 December 2023
At 31 December 2022
BLACKFRIARS ASSET MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
2,781
2,892
Prepayments and accrued income
18,874
18,382
21,655
21,274
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
14,187
12,995
Taxation and social security
555
1,226
Accruals and deferred income
11,616
12,759
26,358
26,980
12
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,980
2,891
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
13
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
11,684,700 (2022: 11,564,700) Ordinary shares of £1 each
11,684,700
11,564,700
The company has one class of Ordinary shares which carry no right to fixed income.
During the year, the company issued a further 120,000 £1 Ordinary shares at par (2022 - 120,000 £1 Ordinary shares) to its immediate parent company.
14
Related party transactions
During the year the company received an investment advisory fee of £3,967 (2022: £3,444) from a fellow subsidiary company.
The company also paid for consultancy services from an independent third party controlled by two of the directors totalling £35,000 (2022: £40,250).
BLACKFRIARS ASSET MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
15
Ultimate controlling party
The immediate parent company is The Hamon Investment Group Pte Limited, a company based in Hong Kong and incorporated in Singapore.
The ultimate parent company is Simon Associates Limited, incorporated in the British Virgin Islands.
The Hamon Investment Group Pte Limited is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements. Copies of these consolidated financial statements are held at 1001, 10th Floor, Standard Chartered Bank Building, Central, Hong Kong.
16
Cash absorbed by operations
2023
2022
£
£
Loss for the year after tax
(98,796)
(117,561)
Adjustments for:
Investment income
(935)
(113)
Depreciation and impairment of tangible fixed assets
197
Movements in working capital:
Increase in debtors
(381)
(2,300)
(Decrease)/increase in creditors
(622)
13,313
Cash absorbed by operations
(100,734)
(106,464)
17
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
85,265
20,201
105,466
18
Going concern
The company has continued to receive support from its parent company, The Hamon Investment Group PTE Limited. Further investment has been provided post year-end and as a result share capital has increased by £30,000.
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