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EMFI Group Limited
























Director's report and financial statements



For the year ended 31 December 2023



Registered number: 11391808

 
EMFI Group Limited
 


Company Information


Director
Usman Sheikh 




Registered number
11391808



Registered office
25-26 Dering Street

London

W1S 1AW




Independent auditor
Buzzacott LLP
Statutory Auditor

130 Wood Street

London

EC2V 6DL





 
EMFI Group Limited
 


Contents



Page
Director's report
 
1 - 2
Independent auditor's report
 
3 - 6
Consolidated statement of comprehensive income
 
7
Consolidated statement of financial position
 
8
Company statement of financial position
 
9
Consolidated statement of changes in equity
 
10
Company statement of changes in equity
 
11
Consolidated Statement of cash flows
 
12
Notes to the financial statements
 
13 - 23


 
EMFI Group Limited
 
 

Director's report
For the year ended 31 December 2023

The director presents his report and the consolidated financial statements of EMFI Group Limited ('the company') and its subsidiaries (together 'the group') for the year ended 31 December 2023.

Director

The director who served during the year was:

Usman Sheikh 

Director's responsibilities statement

The director is responsible for preparing the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.

The director is 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 the group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results

The profit for the year, after taxation, amounted to $2,407,110 (2022 - $761,058).
  

Disclosure of information to auditor

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the company and the group's auditor is unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

Page 1

 
EMFI Group Limited
 

Director's report (continued)
For the year ended 31 December 2023


Small companies exemption

In preparing this report, the director has taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the sole director.
 





Usman Sheikh
Director

Date: 11 September 2024

Page 2

 
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Independent auditor's report to the members, as a body, of EMFI Group Limited
 For the year ended 31 December 2023

Opinion


We have audited the financial statements of EMFI Group Limited ('the parent company') and its subsidiaries ('the Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated and Company statements of financial position, the Consolidated and Company statements of changes in equity, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 or the 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 director with respect to going concern are described in the relevant sections of this report.


Page 3

 
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Independent auditor's report to the members, as a body, of EMFI Group Limited (continued)
For the year ended 31 December 2023

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 director is 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Director's report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Director's 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to take advantage of the small companies' exemptions in preparing the Director's report and from the requirement to prepare a Group strategic report.


Page 4

 
img17c7.png 
 

Independent auditor's report to the members, as a body, of EMFI Group Limited (continued)
For the year ended 31 December 2023

Responsibilities of the director
 

As explained more fully in the Director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the group's and 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 director either intends to liquidate the group or the parent 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:

How the audit was considered capable of detecting irregularities including fraud
 
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud
and non-compliance with laws and regulations, was as follows:
 
the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including
knowledge specific to wealth management and brokerage businesses;
we made enquiries of management as to where they considered there was susceptibility to fraud, and their
knowledge of actual, suspected and alleged fraud;
we identified the laws and regulations that could reasonably be expected to have a material effect on the financial
statements through discussions with directors and other management at the planning stage, and from our knowledge
and experience of wealth management and brokerage businesses;
the audit team held a discussion to identify any particular areas that were considered to be susceptible to
misstatement, including with respect to fraud and non-compliance with laws and regulations; and
we focused our planned audit work on specific laws and regulations which we considered may have a direct material
effect on the financial statements or the operations of the company including the Companies Act 2006, The Financial
Services and Markets Act 2000, employment legislation, and taxation legislation.
 
We assessed the extent of compliance with the laws and regulations identified above through:

making enquiries of management; and
inspecting legal expenditure and correspondence throughout the year for any potential litigation or claims; and
considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws
and regulations.
 
Page 5

 
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Independent auditor's report to the members, as a body, of EMFI Group Limited (continued)
For the year ended 31 December 2023

Auditor's responsibilities for the audit of the financial statements (continued)
To address the risk of fraud through management bias and override of controls, we:
 
determined the susceptibility of the company to management override of controls by checking the implementation of
controls and enquiring of individuals involved in the financial reporting process;
reviewed a reconciliation from bank exports to the trial balance for the year to identify unusual transactions,
particularly in relation to expenditure;
performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any large
variances from the prior period; 
reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias on the part of the company's management; and
tested the completeness of income by reviewing reports generated by the trading platform to entries in the nominal ledger.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included:
 
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, the Financial Conduct Authority and the company's legal advisors.
 
There are inherent limitations in our audit procedures described above. Irregularities that result from fraud might be
inherently more difficult to detect than irregularities that result from error as they may involve deliberate concealment or
collusion. Auditing standards also limit the audit procedures required to identify non-compliance with laws and
regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence,
if any.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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 West (Senior Statutory Auditor)
for and on behalf of
Buzzacott LLP
Statutory Auditor
130 Wood Street
London
EC2V 6DL

11 September 2024
Page 6

 
EMFI Group Limited
 


Consolidated statement of comprehensive income
For the year ended 31 December 2023

2023
2022
Note
$
$

  

Turnover
 4 
4,405,162
2,261,698

Cost of sales
  
(944,581)
(401,927)

Gross profit
  
3,460,581
1,859,771

Administrative expenses
  
(1,433,279)
(1,020,396)

Operating profit
 5 
2,027,302
839,375

Interest receivable and similar income
 9 
1,169,249
187,790

Interest payable and similar expenses
 10 
(55,778)
(51,693)

Profit before tax
  
3,140,773
975,472

Tax on profit
 11 
(733,663)
(214,414)

Profit for the financial year
  
2,407,110
761,058

  

Total comprehensive income for the year
  
2,407,110
761,058

Profit for the year attributable to:
  

Owners of the parent company
  
2,407,110
761,058

  
(2,407,110)
(761,058)

All amounts relate to continuing operations.
There was no other comprehensive income for 2023 or 2022.
The notes on pages 13 to 23 form part of these financial statements.

Page 7

 
EMFI Group Limited - Registered number:11391808


Consolidated statement of financial position
As at 31 December 2023

2023
As restated 2022
Note
$
$

  

Current assets
  

Debtors
 14 
12,182,820
7,502,632

Current asset investments
  
5,103,323
1,740,414

Cash at bank and in hand
 16 
64,761
890,212

  
17,350,904
10,133,258

Creditors: amounts falling due within one year
  
(12,296,394)
(7,485,858)

Net current assets
  
 
 
5,054,510
 
 
2,647,400

Total assets less current liabilities
  
5,054,510
2,647,400


Capital and reserves
  

Called up share capital 
 18 
1,825,859
1,825,859

Profit and loss account
 19 
3,228,651
821,541

Equity attributable to owners of the parent company
  
5,054,510
2,647,400

  
5,054,510
2,647,400


The financial statements were approved and authorised for issue and signed by the sole director on 11 September 2024.




Usman Sheikh
Director

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

Page 8

 
EMFI Group Limited - Registered number:11391808


Company statement of financial position
As at 31 December 2023

2023
2022
Note
$
$

Fixed assets
  

Investments
 13 
1,825,858
1,825,858

  
1,825,858
1,825,858

Current assets
  

Debtors
 14 
1
1

  
1
1

Total assets less current liabilities
  
 
 
1,825,859
 
 
1,825,859

  

  

Net assets
  
1,825,859
1,825,859


Capital and reserves
  

Called up share capital 
 18 
1,825,859
1,825,859

  
1,825,859
1,825,859


 The financial statements were approved and authorised for issue and signed by the sole director on 11 September 2024.


Usman Sheikh
Director

The notes on pages 13 to 23 form part of these financial statements.
Page 9

 
EMFI Group Limited
 


Consolidated statement of changes in equity
For the year ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

$
$
$


At 1 January 2022
1,825,859
60,483
1,886,342



Profit for the year
-
761,058
761,058



At 1 January 2023
1,825,859
821,541
2,647,400



Profit for the year
-
2,407,110
2,407,110


At 31 December 2023
1,825,859
3,228,651
5,054,510


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

Page 10

 
EMFI Group Limited
 


Company statement of changes in equity
For the year ended 31 December 2023


Called up share capital
Total equity

$
$


At 1 January 2022 and 31 December 2022
1,825,859
1,825,859



At 1 January 2023
1,825,859
1,825,859


At 31 December 2023
1,825,859
1,825,859


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

Page 11

 
EMFI Group Limited
 


Consolidated statement of cash flows
For the year ended 31 December 2023

2023
2022
$
$

Cash flows from operating activities

Profit for the financial year
2,407,110
761,058

Adjustments for:

Depreciation of tangible assets
-
1,046

Interest paid
55,778
21,364

Interest received
(1,169,249)
(187,790)

Taxation charge
733,633
214,414

(Increase)/decrease in debtors
(4,680,188)
1,322,968

Increase/(decrease) in creditors
4,810,536
(1,296,745)

Corporation tax (paid)/received
(733,633)
176

Net cash generated from operating activities

1,423,987
836,491


Cash flows from investing activities

Purchase of short-term unlisted investments
(3,362,909)
(1,740,414)

Interest received
1,169,249
187,790

Net cash from investing activities

(2,193,660)
(1,552,624)

Cash flows from financing activities

Interest paid
(55,778)
(21,364)

Net cash used in financing activities
(55,778)
(21,364)

Net (decrease) in cash and cash equivalents
(825,451)
(737,497)

Cash and cash equivalents at beginning of year
890,212
1,627,709

Cash and cash equivalents at the end of year
64,761
890,212


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
64,761
890,212

64,761
890,212


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

Page 12

 
EMFI Group Limited
 
 

Notes to the financial statements
For the year ended 31 December 2023

1.


General information

The company is a private company limited by shares. It is both incorporated and domiciled in England and Wales
with registration number 11391808. The registered office address and principal place of business of the company is
25-26 Derring Street, London, England, W1S 1AW.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained.
Under section 405(2) of the Companies Act 2006, the subsidiary EMFI Analytics Limited has been excluded from consolidation in Companies Act group accounts as it is not material for the purposes of giving a true and fair view.

Page 13

 
EMFI Group Limited
 

Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The company's and group's functional and presentational currency is USD.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

All  foreign exchange gains and losses are presented in profit or loss within administrative expenses'.

 
2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Interest income

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

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

 
EMFI Group Limited
 

Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.7

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company and the group operate and generate income.

 
2.8

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Plant and machinery
-
25%
On cost
Fixtures and fittings
-
20%
On cost

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

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

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

Page 15

 
EMFI Group Limited
 

Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Financial instruments

The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Investments in subsidiary undertakings are measured at cost less impairment.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the reporting date.

  
2.14

Client Funds

A subsidiary of the company has entered into Title Transfer Collateral Arrangements ('TTCAs') whereby that firm takes full ownership of client funds for the purpose of securing or otherwise covering present or future, actual contingent or prospective obligations.
The subsidiary holds these funds on behalf of clients in accordance with the client money rules of the UK Financial Conduct Authority (FCA). These balances have been disclosed as Debtors on the Consolidated statement of financial position, with the corresponding liability included in Trade creditors.
 
Client money not held under a TTCA is not recognised on the Consolidated statement of financial position.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the year-end date and the amounts
reported for revenues and expenses during the year. However, the nature of estimation means that actual
outcomes could differ from those estimates.
The director does not consider there to be any significant judgements or key sources of estimation uncertainty
involved in the preparation of these financial statements, other than regarding the treatment of client funds (see
note 2.14).

Page 16

 
EMFI Group Limited
 
 

Notes to the financial statements
For the year ended 31 December 2023

4.


Turnover

All turnover was derived from the group's principal activity.
All turnover arose from activities performed within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
$
$

Exchange differences
(53,623)
(7,385)

Other operating lease rentals
80,234
64,985


6.


Auditor's remuneration

2023
2022
$
$

Fees payable to the group's auditor for the audit of the consolidated and parent company's financial statements
5,092
3,617

Fees payable to the group's auditors  in respect of:

The auditing of accounts of subsidiaries
28,284
15,676

Audit-related assurance services
22,280
11,067

Taxation compliance services
6,047
5,125

All non-audit services not included above
7,002
19,983




7.
Staff costs and average number of employees

Staff costs during the year, including director's remuneration, were as follows:


2023
2022

$
$

Wages and salaries
357,112
189,842

Social security costs
34,362
19,745

Cost of defined contribution scheme
7,896
5,254

399,370
214,841

Page 17

 
EMFI Group Limited
 
 

Notes to the financial statements
For the year ended 31 December 2023

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


        2023
        2022
            No.
            No.







Director
1
1



Administration
5
3

6
4


8.


Director's remuneration

2023
2022
$
$

Director's emoluments
30,533
29,572

30,533
29,572



9.


Interest receivable

2023
2022
$
$


Interest receivable
1,169,249
187,790

1,169,249
187,790


10.


Interest payable and similar expenses

2023
2022
$
$


Bank interest payable
-
18,866

Bank charges
55,778
32,827

55,778
51,693

Page 18

 
EMFI Group Limited
 
 

Notes to the financial statements
For the year ended 31 December 2023

11.


Taxation


2023
2022
$
$

Corporation tax


Current tax on profits for the year
742,352
214,414

Adjustments in respect of previous periods
(8,149)
-


734,203
214,414


Total current tax
734,203
214,414

Deferred tax


Origination and reversal of timing differences
(540)
-

Total deferred tax
(540)
-


Taxation on profit on ordinary activities
733,663
214,414

Factors affecting tax charge for the year

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

2023
2022
$
$


Profit on ordinary activities before tax
3,140,773
975,472


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
738,710
185,340

Effects of:


Expenses not deductible for tax purposes
-
36,327

Exchange difference arising on movement between opening and closing spot rates
3,857
(7,253)

Adjustments to tax charge in respect of prior periods
(8,149)
-

Movement in deferred tax not recognised
(215)
-

Origination and reversal of deferred tax timing differences
(540)
-

Total tax charge for the year
733,663
214,414

Page 19

 
EMFI Group Limited
 
 

Notes to the financial statements
For the year ended 31 December 2023
 
11.Taxation (continued)


Change in applicable tax rate

On 10 June 2021, the Finance Bill 2021 received Royal Assent. With effect from 1 April 2023, the rate of corporation tax increased, tapering from 19% for businesses with profits of less than £50,000 to 25% for businesses with profits over £250,000.


12.


Tangible fixed assets

Group






Plant and machinery
Fixtures and fittings
Total

$
$
$



Cost or valuation


At 1 January 2023
9,030
2,882
11,912



At 31 December 2023

9,030
2,882
11,912



Depreciation


At 1 January 2023
9,030
2,882
11,912



At 31 December 2023

9,030
2,882
11,912



Net book value



At 31 December 2023
-
-
-



At 31 December 2022
-
-
-

Page 20

 
EMFI Group Limited
 
 

Notes to the financial statements
For the year ended 31 December 2023

13.


Fixed asset investments

Company





Investments in subsidiary companies

$



Cost or valuation


At 1 January 2023
1,825,858



At 31 December 2023
1,825,858





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Class of shares

Holding

EMFI Capital Limited
25-26 Derring Street, London, England, W1S 1AW
Ordinary
100%
EMFI Securities Limited
25-26 Derring Street, London, England, W1S 1AW
Ordinary
100%


14.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
$
$
$
$


Other debtors
11,779,786
7,442,261
-
-

Called up share capital not paid
1
1
1
1

Prepayments and accrued income
403,033
60,370
-
-

12,182,820
7,502,632
1
1


Included in other debtors are $11,775,018 (2022 - $7,138,107) in respect of amounts held under TTCAs. This includes $1,645,517 held in respect of an unsettled transaction.

Page 21

 
EMFI Group Limited
 
 

Notes to the financial statements
For the year ended 31 December 2023

15.


Current asset investments

Group
Group
2023
 As restated 2022
$
$

Cash at liquidity provider
5,103,323
1,740,414

5,103,323
1,740,414



16.


Cash and cash equivalents

Group
Group
2023
As restated 2022
$
$

Cash at bank and in hand
64,761
890,212

64,761
890,212


As stated in note 2.14, a subsidiary of the company operates segregated client money bank accounts and client transaction accounts. As at 31 December 2023, the total balance of these accounts was $17,990k (2022: $18,496k).


17.


Creditors: amounts falling due within one year

Group
Group
2023
2022
$
$

Trade creditors
-
30,788

Corporation tax
320,892
214,590

Other taxation and social security
-
5,111

Other creditors
11,777,016
7,148,816

Accruals and deferred income
198,486
86,553

12,296,394
7,485,858


Included in other creditors are $11,775,018 (2022 - $7,138,107) in respect of amounts held under TTCAs. This includes $1,645,517 held in respect of an unsettled transaction. 

Page 22

 
EMFI Group Limited
 
 

Notes to the financial statements
For the year ended 31 December 2023

18.


Share capital

2023
2022
$
$
Allotted and called up



1,350,002 (2022 - 1,350,002) Ordinary shares of £1.00 each
1,825,859
1,825,859



19.


Reserves

Profit and loss account

Includes all current period retained profits and losses.


20.


Prior year adjustment

In the prior year, $1,740,414 of funds held at brokers were disclosed as 'cash at bank and in hand'. As these funds do not meet the definition of 'cash at bank and in hand', a prior year adjustment has been made to reclassify these balances as current asset investments. This has no impact on retained earnings brought forward.


21.


Contingent liabilities

There were no contingent liabilities at 31 December 2023 or 31 December 2022.


22.


Capital commitments




At 31 December 2023 the group and company had capital commitments as follows:



23.


Related party transactions

The financial statements do not include disclosure of transactions between the company and other entities which
are members of the group headed by EMFI Group Limited. This is because subsidiaries which are party to such transactions are wholly owned within the group. Therefore, the company is not required to disclose such transactions, under Financial Reporting Standard 102 paragraph 33.1A Related Party Disclosures.


24.


Controlling party

The ultimate controlling party is Usman Sheikh.

Page 23