Company registration number 09969387 (England and Wales)
MILLBANK FX LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MILLBANK FX LIMITED
COMPANY INFORMATION
Directors
Mr Benjamin Wilson
Mr Matheu Crisp
Company number
09969387
Registered office
Level 9
1 Canada Square
Canary Wharf
London
E14 5AA
Accountants
Grunberg & Co Ltd
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
MILLBANK FX LIMITED
CONTENTS
Page
Directors' report
1 - 2
Statement of comprehensive income
3
Statement of financial position
4
Notes to the financial statements
5 - 10
MILLBANK FX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company is that of a deliverable foreign exchange broker. The company is regulated by the Financial Conduct Authority (“FCA”).

Directors

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

Mr Benjamin Wilson
Mr Matheu Crisp
Principal risks and uncertainties

Operational risk

 

Operational risk is the risk of direct or indirect losses due to inadequate internal systems and controls. This can include the incorrect inputting or execution of trades and settlements.

 

Management have implemented clear control frameworks along with extensive internal control processes which are regularly tested for effectiveness.

 

Credit risk

 

The Company is exposed to credit risk if a client fails to deliver currency at maturity of the contract and/or fails to deposit margin when a margin call is issued.

 

Millbank’s credit team assesses client’s creditworthiness and established credit limits before any credit lines are given out. A credit policy is in place to mitigate any potential losses arising from a client failing to settle. Credit positions are monitored on daily basis along with stress testing to simulate volatile market conditions.

 

Regulatory and Compliance risk

 

The Company faces the risk of failing to adhere to its regulatory and legal requirements.

 

The Company maintains robust polices and procedures along with vigorous systems and controls. In additional to its in-house compliance team, Millbank has strong relationships with leading independent financial compliance firms who regularly liaise with management and conduct independent audits.

 

Liquidity risk

 

Liquidity risk arises if Millbank is unable to meet its financial obligations when they fall due.

Millbank operates as a matched-principal broker. Meaning that when a client instructs us to execute a trade, we immediately execute a matching trade with our banking counterparties. In addition, Millbank’s terms of business enable us to collect margin from clients in response to adverse market movements.

 

Cyber and Data security

 

Security and date integrity is of vital importance to Millbank and its clients. The Company faces the risk of its operating systems failing which may result in an inability to safeguard data.

 

Millbank’s infrastructure leverages cloud-based security services and we take a multi-layered in-depth approach to security. Security controls are regularly reviewed and update and in addition, the Company maintains a comprehensive Cyber insurance policy.

 

MILLBANK FX LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr Benjamin Wilson
Director
27 March 2024
MILLBANK FX LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
2023
2022
£
£
Gross value of currency sales
1,274,337,698
823,361,912
Gross value of currency purchases
(1,271,894,650)
(821,136,701)
Revenue
2,443,048
2,225,211
Cost of sales
(142,450)
(97,827)
Gross profit
2,300,598
2,127,384
Administrative expenses
(2,106,979)
(1,279,905)
Operating profit
193,619
847,479
Interest receivable and similar income
4,102
886
Interest payable and similar expenses
(30,000)
(27,750)
Profit before taxation
167,721
820,615
Tax on profit
(40,337)
(158,690)
Profit for the financial year
127,384
661,925
MILLBANK FX LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
50,250
58,488
Current assets
Debtors
5
582,648
374,007
Cash at bank and in hand
10,283,075
6,152,110
10,865,723
6,526,117
Creditors: amounts falling due within one year
6
(9,849,981)
(5,417,414)
Net current assets
1,015,742
1,108,703
Total assets less current liabilities
1,065,992
1,167,191
Provisions for liabilities
(12,562)
(14,478)
Net assets
1,053,430
1,152,713
Capital and reserves
Called up share capital
378,004
378,004
Profit and loss reserves
675,426
774,709
Total equity
1,053,430
1,152,713

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 27 March 2024 and are signed on its behalf by:
Mr Benjamin Wilson
Director
Company registration number 09969387 (England and Wales)
MILLBANK FX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information

Millbank FX Limited is a private company limited by shares incorporated in England and Wales. The registered office is Level 9, 1 Canada Square, Canary Wharf, London, E14 5AA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Revenue

Revenue 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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

FX Hedging

When the Company enters into a contract with a client, it immediately enters into a separate matched contract with its banking counterparty.

 

Spot and forward revenue is recognised when a binding contract is entered into by a client and the revenue is fixed and determined. Revenue represents the difference between the premiums offered to clients and the premium the Company receives from its banking counterparties.

 

1.3
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:

Leasehold land and buildings
over 5 years
Fixtures and fittings
20% reducing balance
Computer equipment
20% reducing balance

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.

1.4
Impairment of fixed assets

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

MILLBANK FX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -

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.

1.5
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.

1.6
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Classification of financial liabilities

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

MILLBANK FX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Equity instruments

Equity instruments issued by the company 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 company.

1.8
Derivatives

Derivative financial instruments

Derivative financial assets are carried as assets when the fair value is positive and liabilities when their fair value is negative. Changes in the fair value of derivatives are included in the statement of comprehensive income. the Company's derivative financial assets at fair value through profit or loss comprise of forward exchange contracts.

 

The Company undertakes matched principle broking involving immediate back-to-back derivative transactions with counterparties. These transactions are classified as financial instruments at fair value through profit or loss and are shown gross except where a netting agreement, which is legally enforceable, exists and the intention is for the asset and liability to be settled net.

1.9
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

MILLBANK FX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
1.10
Retirement benefits
The company operates a defined contribution retirement benefit scheme for all qualifying employees. The assets of the scheme are held separately from those of the company. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions.
1.11
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.

1.12
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
Employees

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

2023
2022
Number
Number
Employees
12
12
Directors
2
2
Total
14
14
MILLBANK FX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
4
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
2,875
67,387
16,623
86,885
Additions
-
0
1,200
2,868
4,068
At 31 December 2023
2,875
68,587
19,491
90,953
Depreciation and impairment
At 1 January 2023
2,300
19,790
6,307
28,397
Depreciation charged in the year
575
9,620
2,111
12,306
At 31 December 2023
2,875
29,410
8,418
40,703
Carrying amount
At 31 December 2023
-
0
39,177
11,073
50,250
At 31 December 2022
575
47,597
10,316
58,488
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
300,357
245,679
Other debtors
264,005
100,704
Prepayments and accrued income
18,286
27,624
582,648
374,007

Trade debtors include an amount of £81,427 (2022: £47,025) representing the fair value of derivative financial assets arising as a result of matched principle transactions.

6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
145,774
111,661
Corporation tax
42,253
148,554
Other taxation and social security
11,427
9,959
Other creditors
9,650,527
5,147,240
9,849,981
5,417,414
MILLBANK FX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Creditors: amounts falling due within one year
(Continued)
- 10 -

Trade creditors include an amount of £81,427 (2022: £47,025) representing the fair value of derivative financial liabilities arising as a result of matched principle transactions.

 

Other creditors include £9,388,481 (2022: £4,879,935 ) of client held funds.

7
Operating lease commitments
Lessee

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

2023
2022
£
£
13,500
81,000
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