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Registered number: 13018987









GLOBAL FUTURES AND OPTIONS LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
COMPANY INFORMATION


Directors
R R Melwani 
D J Penton 
A Sen 




Registered number
13018987



Registered office
First Floor
36-38 Botolph Lane

London

EC3R 8DE




Independent auditors
Deloitte LLP

2 New Street Square

London

EC4A 3BZ





 
GLOBAL FUTURES AND OPTIONS LTD
 

CONTENTS



Page
Strategic report
 
 
1 - 5
Directors' report
 
 
6 - 8
Independent auditors' report
 
 
9 - 12
Statement of comprehensive income
 
 
13
Statement of financial position
 
 
14 - 15
Statement of changes in equity
 
 
16
Statement of cash flows
 
 
17
Notes to the financial statements
 
 
18 - 30

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
Global Futures and Options Ltd (the “Company”, “GFO-X”) is a private company incorporated on 15 November 2020, limited by shares, registered in England, and Wales under Companies Act 2006. The Company is a directly wholly owned subsidiary of Global Futures and Options Holdings (the “Parent”), a limited liability company registered in the Cayman Islands. 
The Company is authorised and regulated by the Financial Conduct Authority (“FCA”) with permission to operate as a Multilateral Trading Facility (“MTF”).

Business review
 
GFO-X is UK’s first regulated and centrally cleared trading venue dedicated to digital asset Futures and Options. GFO-X has partnered and is connected to London Stock Exchange’s (LSEG) London Clearing House SA (LCH SA).
The Company is due to launch in June 2024.
GFO-X will operate a transaction-based model where executed trades, both Futures and Options, will contribute to the revenue stream. The Company will charge a fixed amount per contract that is executed on its platform.
Front to back testing continues in line with the expectations and all other essential preparations for the launch are on track and in accordance with the established timeline. 
The Parent Company has completed a Series B fund raise with a total investment of $30 million led by the biggest Pension Fund in the UK.
This investment will safely cover all Group operational expenses up to the end of 2025 without considering any revenue that will be generated.

Page 1

 
GLOBAL FUTURES AND OPTIONS LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The GFO-X risk management framework considers the risks associated with the operation of the business through 3 perspectives:
Key Performance Indicators (business operational risks).
Risk Assessment Framework (holistic review of business risks).
Forward Horizon Risks (other risks that the industry is aware of but may not yet directly impact GFO-X).
The Risk Assessment Framework considers issues such as:
Market Risk
‘Market Risk’ is the possibility that an entity will experience losses due to factors affecting the overall performance of investments in the financial markets. GFO-X considers the following factors:

Market price risk
Position risk
Foreign exchange risk
Interest rate risk
Liquidity risk
Credit risk
Concentration risk

The Company has no investment or trading positions (e.g. treasuries, bonds, securities) and will not hold any funds on behalf of its customers. 
GFO-X monitors its funding requirements on an ongoing basis and levels any residual currency balances monthly. Current foreign exchange rate and interest rate movements are all within GFO-X’s risk appetite.
GFO-X reserves are held in highly liquid instruments (cash) with regulated banking institutions. 
Operational Risk
All operational risks fall within the GFO-X risk appetite.
GFO-X is especially mindful of the current geo-political unrest, the resultant implications on sanctions regimes and the changing nature of financial crime and the need to ensure the proceeds of crime are rightfully returned. 
By way of example, GFO-X considers two scenarios:
a) Fraud: To minimise fraud risk, GFO-X maintains stringent internal controls and procedures and a clear separation of functions including regular cash flows reporting, and provision of timely management information. 
b) Resilience: To minimise business disruption GFO-X maintains two physical locations with a distributed inventory setup, backed by disaster recovery sites, full business continuity plans, work-from-home arrangements, and network controls for external security.
Regulatory Risk
GFO-X actively advocates for Digital Assets Regulation. Our advocacy is closely aligned with our regulatory engagement, which ensures the Company stays at the forefront of regulatory change, initiatives, and strategic thinking.
There are two principal areas of regulatory focus in the operation of markets:
- AML (Anti-Money Laundering) Mitigation:
All GFO-X Participants are required to pass the Company’s Customer Due Diligence (in line with the UK Joint Money Laundering Steering Group Guidance). Furthermore, all GFO-X Participants require the sponsorship of a member of LCH SA. 
 
Page 2

 
GLOBAL FUTURES AND OPTIONS LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

- MAR (Market Abuse Regulation) Mitigation:
All GFO-X Participants are required to pass conformance tests prior to having access to the GFO-X platform. GFO-X monitors all transactions through its own dedicated market surveillance team (which utilises the NASDAQ Market Surveillance tools).

Financial key performance indicators
 
The main KPIs used by the Directors to assess the performance of the Company will develop over time, after the Company is fully operational. Such KPIs will include the number of the issuers admitted to the platform, turnover, and net profit.
At its pre-revenue stage, the Company currently emphasises its cash position and liquidity as primary KPIs.

Other key performance indicators
 
The company prioritises several non-financial Key Performance Indicators (KPIs) to evaluate its performance. This includes building strong relationships with regulators, clients, and service providers to ensure compliance and foster a positive regulatory environment. Key indicators include client uptake, measured by the number of new clients onboarded and retention rates, as well as the signing of contractual agreements and onboarding of market makers to enhance market liquidity.
Investments in IT and operational resilience are critical, with regular testing to ensure system readiness and minimize disruptions. The company also focuses on obtaining necessary regulatory approvals and maintaining a transparent relationship with regulatory bodies. Additionally, it maintains an active presence on social media to promote its brand and share insights on the digital assets market.
In summary, the company's non-financial KPIs emphasize relationship-building, operational excellence, regulatory compliance, and transparent communication, all of which are essential for its long-term success.

Page 3

 
GLOBAL FUTURES AND OPTIONS LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with section 172(1) of the Companies Act 2006
 
As Directors of GFO-X, we acknowledge our obligation to adhere to s172 of the Companies Act 2006, which mandates that we act in a manner conducive to the Company's success while taking into consideration the interests of our diverse stakeholders.
As stewards of GFO-X, we as Directors meticulously assessed the obligations outlined in s172. With an eye on long-term implications and stakeholder interests, we conscientiously acted during the fiscal year ending December 31, 2023, striving to advance the Company’s prosperity for the collective benefit of all. 
When making decisions, each Director ensures that, acting in good faith, they will most likely promote GFO-X’s success for the benefit of its members as a whole, and in doing so has regard (among other matters) to the issues set out below.

GFO-X has established the following values:
1. Honesty, Integrity, and Transparency in everything we do.
2. Inclusion and respect: A collaborative environment where team members are empowered to share and to challenge so we deliver consistent excellence as a whole.
3. Innovation and excellence in technology: Delivering the best and most innovative solutions, to all our clients, as a trusted partner.
S172(1) (a) “The likely consequences of any decision in the long term”
The Directors of GFO-X have faced various challenges during the year. The demand for the underlying product has been supported by industry developments, such as the approval of Bitcoin (BTC) ETFs in the US (January 2024). Despite the impending formal approval, a sense of hesitation and resistance persists within the industry regarding early adoption. Change, it seems, is met with both anticipation and caution.
The Directors have focussed on operationalising the business. This has included continuing to implement connectivity to the Company’s systems across a variety of vendors & our strategic partnership with our Central Clearing Counterparty (CCP), London Clearing House. This level of industry engagement reinforces the unique value proposition that GFO-X presents to its customers and forms part of the GFO-X ecosystem. 
The delay in Participant readiness coupled with the ongoing investment in the GFO-X ecosystem caused the Directors to review the Company’s capital runway. As such, a capital raise was undertaken during 2023 which closed in Q4 of 2023. This raise was successful and secured M&G Investments as the largest shareholder, outside of the two Co-founders. 
S172(1) (b) “The interests of the Company’s employees”
The Directors recognise that employees are fundamental and core to our business model and the safe delivery of our strategic ambitions. The success of our business depends on attracting, retaining, developing and motivating talented employees. The Directors consider and assess the implications of relevant decisions on employees and the wider workforce. The Directors seek to ensure that GFO-X remains a responsible employer, including with respect to pay and benefits, health and safety issues, and the workplace environment. The Directors regularly engage with employees through Town Hall meetings or scheduled team building exercises.
Please also see the GFO-X values above.
S172(1) (c) “The need to foster the Company’s business relationships with suppliers, customers and others”
Delivering our strategy requires strong mutually beneficial relationships with our CCP (London Clearing House), Participants, the service providers which make up the GFO-X eco-system, regulators and investors. GFO-X continually assess the priorities related to our business partners through our Technology and Operations
Page 4

 
GLOBAL FUTURES AND OPTIONS LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Committee (“TOPs”) and within the context of business strategy updates and investment proposals through the Executive Management Committee (“EMC”)
The Directors also ensure there is always adequate capital in place to implement a controlled wind down of the business (see also the Wind Down Plan) to ensure no Participant or vendor is adversely impacted by the termination of services by GFO-X.
Maintaining transparent and cooperative relationships with regulatory authorities, such as the Financial Conduct Authority, is imperative for ensuring compliance across all operational facets. We actively participate in quarterly meetings with our regulator & maintain ongoing training to uphold regulatory standards. 
S172(1) (d) “The impact of the Company’s operations on the community and the environment”
GFO-X encourages socially and environmentally responsible behaviour. Prior to the commencement of activities, the impact of GFO-X activities on the community and environment is limited.
Acknowledging our responsibility to the community in which we operate, we endeavour to minimize our environmental impact. Initiatives such as waste reduction and energy efficiency initiatives underscore our commitment to environmental stewardship. The Company actively seeks to reduce its carbon footprint and aims to be paperless business.
S172(1) (e) “The desirability of the Company maintaining a reputation for high standards of business conduct”
GFO-X holds it market reputation in high regard, as an essential part of its business offering and strategy. GFO-X enshrines these principles through the GFO-X Control Framework which consists of i) GFO-X Policies, ii) incorporating the best of relevant industry standards, iii) which are supplemented by GFO-X guidance (where required), iv) which then distil into GFO-X Procedures.
S172(1) (f) “The need to act fairly as between members of the Company”
After weighing up all relevant factors, the Directors consider which course of action best enables the strategic delivery of the long-term interests of GFO-X, taking into consideration the effect on stakeholders. In doing so, GFO-X Directors act fairly between all the Company’s members. 
We value the trust vested in us by our shareholders and are committed to providing regular updates on the Company performance & progress.  Our key objective is to achieve sustainable growth and optimise shareholder value as a fully regulated entity, while adhering to ethical standards and corporate governance principles. 


This report was approved by the board and signed on its behalf.







R R Melwani
Director

Date: 1 May 2024
Page 5

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the company is that of building a MTF for futures and options on digital asset index underlyings which is anticipated for launch in H1 2024. Global Futures and Options Limited is authorised and regulated by the FCA.

Results and dividends

The loss for the year, after taxation, amounted to £7,798,216 (2022 - loss £5,198,789).

The directors do not recommend payment of a dividend (2022: £nil). 

Directors

The directors who served during the year and to the date of this report were:

R R Melwani 
D J Penton 
A Sen 

Page 6

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Environmental matters

As a trading venue operating in the dynamic landscape of Digital Assets, we are conscious of the environmental implications associated with certain aspects of the industry, particularly bitcoin mining. While the firm does not engage in bitcoin mining activities, we understand the importance of minimising our environmental footprint within the broader ecosystem.
All transactions on the GFO-X platform will be cash-settled against our GFO-X/Coin Metrics Single Asset Real-Time Bitcoin Index (GFOXBR), a UK/EU BMR-compliant reference rate of the price of Bitcoin denominated in U.S. dollars and therefore will not have any substantial ecological impact.  By facilitating cash settlement, we aim to limit our contribution to the energy-intensive process associated with digital assets. At GFO-X we support utilisation of renewable energy sources and the advancement of sustainable financial practices.

Future developments

GFO-X’s initial regulated derivatives platform will be focused on servicing professional and eligible investors.
The Management team is reviewing the launch of an Asian venue post the UK venue going live and is working with specific regulatory groups to assess the viability.  Over 50% of digital asset volumes are generated from the Asia Pacific region.
The leadership team at GFO-X possesses substantial expertise and a robust network within the Asian markets, having worked there over the last 2 decades. They have had lengthy conversations with regional regulators to ascertain that these jurisdictions are conducive to the establishment of a fully regulated Digital Asset platform, which is centrally cleared. 

Qualifying third party indemnity provisions

The company provides Directors and Officers insurance on behalf of its directors to the limit of £2,000,000.

Matters covered in the Strategic Report

As permitted by section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, certain matters which are required to be  disclosed in the Directors’ Report have been omitted as they are included in the Strategic  Report instead. These matters relate to business performance, principal risks and future developments.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director 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's auditors are aware of that information.

Page 7

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.
Going concern
In December 2023, Global Futures and Options Holdings Limited (the “Group”) completed a $30 million USD Series B funding round led my M&G. To date, $13,814,740 of capital has been received. However, given the current structure of the agreement with M&G Investments, a portion of this funding will only be available once certain milestones are met. 
As such, the Directors of GFO-X (the “Company”) have considered a range of stressed scenarios including potential delay in launching the platform, therefore not generating revenue within the going concern period (i.e. at least 12 months from the date of approval of the financial statements). In these scenarios, they have concluded there will be sufficient capital and liquidity for the Group to continue as a going concern. Furthermore, based on the commitment from the Group to provide ongoing support, the Directors have concluded that the Company will also continue as a going concern. 

Auditors

Wilson Wright LLP resigned as auditors and Deloitte LLP were appointed in their stead. 

The auditorsDeloitte LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 







R R Melwani
Director

Date: 1 May 2024
Page 8

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDER OF GLOBAL FUTURES AND OPTIONS LTD
 

Opinion


In our opinion the financial statements of Global Futures and Options Limited (the ‘company’):
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, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:
the statement of comprehensive income;
the statement of financial position;
the statement of changes in equity;
the statement of cash flows;
the related notes 1 to 24.

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).


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 9

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDER OF GLOBAL FUTURES AND OPTIONS LTD (CONTINUED)


Other information


The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.


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.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.


Page 10

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDER OF GLOBAL FUTURES AND OPTIONS LTD (CONTINUED)


Extent to which the audit was considered capable of detecting irregularities, including fraud
 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 
We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector. 
We obtained an understanding of the legal and regulatory framework[s] that the company operates in, and identified the key laws and regulations that: 
 
had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act; and
do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team, including relevant internal specialists such as taxation, information technology and regulatory specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
 
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; 
enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and 
reading minutes of meetings of those charged with governance, reviewing correspondence with HMRC and the Financial Conduct Authority. 


Page 11

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDER OF GLOBAL FUTURES AND OPTIONS LTD (CONTINUED)


Report on other legal and regulatory requirements
 

Opinions 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 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.

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 any material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters 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 directors’ remuneration specified by law are not made; or 
we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.


Use of our report
 

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





Alex Morton (Senior statutory auditor)
  
for and on behalf of
Deloitte LLP
 
Statutory Auditor
  
London, United Kingdom

1 May 2024
Page 12

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Administrative expenses
  
(7,901,456)
(5,199,746)

Operating loss
 4 
(7,901,456)
(5,199,746)

Interest receivable and similar income
 8 
104,502
957

Interest payable and similar expenses
 9 
(1,262)
-

Loss before tax
  
(7,798,216)
(5,198,789)

Loss for the financial year
  
(7,798,216)
(5,198,789)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 18 to 30 form part of these financial statements.
Page 13

 
GLOBAL FUTURES AND OPTIONS LTD
REGISTERED NUMBER: 13018987

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
874,987
1,316,010

  
874,987
1,316,010

Current assets
  

Debtors: amounts falling due after more than one year
 12 
149,055
149,055

Debtors: amounts falling due within one year
 12 
196,104
195,961

Cash at bank and in hand
 13 
2,352,416
9,351,662

  
2,697,575
9,696,678

Creditors: amounts falling due within one year
 14 
(860,644)
(635,814)

Net current assets
  
 
 
1,836,931
 
 
9,060,864

Total assets less current liabilities
  
2,711,918
10,376,874

Provisions for liabilities
  

Other provisions
  
(52,500)
(52,500)

  
 
 
(52,500)
 
 
(52,500)

Net assets
  
2,659,418
10,324,374


Capital and reserves
  

Called up share capital 
 16 
13
13

Share premium account
 17 
15,969,696
15,969,696

Capital contribution
 17 
383,836
250,576

Profit and loss account
 17 
(13,694,127)
(5,895,911)

  
2,659,418
10,324,374

Page 14

 
GLOBAL FUTURES AND OPTIONS LTD
REGISTERED NUMBER: 13018987
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 






R R Melwani
A Sen
Director
Director


Date: 1 May 2024

The notes on pages 18 to 30 form part of these financial statements.
Page 15

 
GLOBAL FUTURES AND OPTIONS LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Capital contribution
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
13
15,969,696
-
(697,122)
15,272,587


Comprehensive income for the year

Loss for the year
-
-
-
(5,198,789)
(5,198,789)
Total comprehensive income for the year
-
-
-
(5,198,789)
(5,198,789)


Contributions by and distributions to owners

Share based payment transactions
-
-
250,576
-
250,576


Total transactions with owners
-
-
250,576
-
250,576



At 1 January 2023
13
15,969,696
250,576
(5,895,911)
10,324,374


Comprehensive income for the year

Loss for the year
-
-
-
(7,798,216)
(7,798,216)
Total comprehensive income for the year
-
-
-
(7,798,216)
(7,798,216)


Contributions by and distributions to owners

Share based payment transactions
-
-
133,260
-
133,260


Total transactions with owners
-
-
133,260
-
133,260


At 31 December 2023
13
15,969,696
383,836
(13,694,127)
2,659,418


The notes on pages 18 to 30 form part of these financial statements.
Page 16

 
GLOBAL FUTURES AND OPTIONS LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(7,798,216)
(5,198,789)

Adjustments for:

Depreciation of tangible assets
684,057
595,172

Interest paid
1,262
-

Interest received
(104,502)
(957)

(Increase) in debtors
(142)
(245,084)

Increase in creditors
224,829
596,939

Increase/(decrease) in amounts owed to groups
-
(350)

Increase in provisions
-
52,500

Foreign exchange
235,480
(468,611)

Share based payment charge
133,260
250,576

Net cash generated from operating activities

(6,623,972)
(4,418,604)


Cash flows from investing activities

Purchase of tangible fixed assets
(243,034)
(503,812)

Interest received
104,502
957

Net cash from investing activities

(138,532)
(502,855)

Cash flows from financing activities

Issue of ordinary shares
-
13,093,435

Interest paid
(1,262)
-

Net cash used in financing activities
(1,262)
13,093,435

Net (decrease)/increase in cash and cash equivalents
(6,763,766)
8,171,976

Cash and cash equivalents at beginning of year
9,351,662
711,075

Foreign exchange gains and losses
(235,480)
468,611

Cash and cash equivalents at the end of year
2,352,416
9,351,662


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,352,416
9,351,662

2,352,416
9,351,662


The notes on pages 18 to 30 form part of these financial statements.

Page 17

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Global Futures and Options Ltd is a private company limited by shares incorporated in England and Wales.
The registered office is First Floor, 36-38 Botolph Lane, London, EC3R 8DE.
The principal activity of the company is that of building MTF for futures and options on digital asset index underlyings which will launch in H1 2024. 

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 and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

In December 2023, Global Futures and Options Holdings Limited (the “Group”) completed a $30 million USD Series B funding round led my M&G. To date, $13,814,740 of capital has been received. However, given the current structure of the agreement with M&G Investments, a portion of this funding will only be available once certain milestones are met. 
As such, the Directors of GFO-X (the “Company”) have considered a range of stressed scenarios including potential delay in launching the platform, therefore not generating revenue within the going concern period (i.e. at least 12 months from the date of approval of the financial statements). In these scenarios, they have concluded there will be sufficient capital and liquidity for the Group to continue as a going concern. Furthermore, based on the commitment from the Group to provide ongoing support, the Directors have concluded that the Company will also continue as a going concern. 

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

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.

Page 18

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

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

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 19

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

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 operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.9

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:

Short-term leasehold improvements
-
Over the term of the lease
Fixtures and fittings
-
3 years
Office equipment
-
3 years
Computer equipment
-
3 years

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.

Page 20

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.10

Capitalisation policy

FRS102 states the following:
An entity may recognize an intangible asset arising from development (or from the development phase of an internal project) if, and only if, the entity can demonstrate all of the following:
(a) The technical feasibility of completing the intangible asset so that it will be available for use or sale.
(b) Its intention to complete the intangible asset and use or sell it.
(c) Its ability to use or sell the intangible asset.
(d) How the intangible asset will generate probable future economic benefits. Among other things, the entity can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.
(e) The availability of adequate technical, financial, and other resources to complete the development and to use or sell the intangible asset.
(f) Its ability to measure reliably the expenditure attributable to the intangible asset during its development.
The expenses in question would primarily pertain to platform development activities carried out by only two developers in London during the fiscal year 2023.
Since the capitalisation of the development cost is not compulsory the Company has decided not to capitalise any of the above costs but to recognise them as an expense in the year they are incurred. 
The primary development activities are centred in our Global Futures and Options Limited (Hong Kong), a fellow subsidiary of the group, where associated costs are being incurred. The platform will serve the London-based company, with all client acquisitions and signings taking place in London. Revenue collection will also be managed from our London entity, and once the business becomes operational, transfer pricing rules will be established between the entities.

 
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.

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.13

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
 
Page 21

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.13
Financial instruments (continued)

(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 22

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

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 balance sheet 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.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are no key jugements or accounting estimates that impact the accounts.


4.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Staff costs (note 6)
4,694,504
3,059,018

Exchange differences
235,480
(468,611)

Legal, professional, regulatory fees
311,029
484,359

Rent and premises expenses
497,936
442,817

Depreciation (note 11)
684,057
595,172

Auditors remuneration (note 5)
95,000
18,000

Advertising
94,454
56,482

Travel, hotels and subsistence
108,610
81,832

IT costs
783,412
535,831

Other expenses
263,714
144,270

Share-based payment (note 18)
133,260
250,576

7,901,456
5,199,746


5.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
95,000
18,000

Fees payable to the Company's auditors and their associates in connection with the Company's pension scheme(s) in respect of:

All non-audit services not included above
-
21,315
Page 23

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
3,877,808
2,661,316

Social security costs
431,955
334,277

Cost of defined contribution scheme
384,741
63,425

4,694,504
3,059,018


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


        2023
        2022
            No.
            No.







Research and development
3
1



Exchange infrastructure and support
8
7



Operations
4
2



Management
3
2



Sales & support
5
4



Senior heads and support
5
5

28
21


7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
890,000
493,000

Company contributions to defined contribution pension schemes
46,392
16,517

936,392
509,517


During the year retirement benefits were accruing to 3 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £370,000 (2022 - £308,333).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £20,384 (2022 - £12,330).

Page 24

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Interest receivable

2023
2022
£
£


Other interest receivable
104,502
957

104,502
957

Other interest receivable relates to interest receiveable on short term deposit balances. 


9.


Interest payable and similar expenses

2023
2022
£
£


Interest payable
1,262
-

1,262
-


10.


Taxation




The accounting loss for the year can be reconciled to the tax charge as follows:

2023
2022
£
£


Loss on ordinary activities before tax
(7,798,216)
(5,198,789)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(1,832,581)
(987,770)

Effects of:


Expenses not deductible
24,035
41,313

Movement in unrecognised deferred tax
1,808,546
946,457

Total tax charge for the year
-
-


Factors that may affect future tax charges

No deferred tax asset has been recognised on temporary differences relating to carried forward tax losses and share options totalling £14,148,844 (2022: £6,452,688), due to the uncertainty of future profits.

Page 25

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Tangible fixed assets





Short-term leasehold improvements
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
253,800
96,946
19,214
1,688,074
2,058,034


Additions
14,282
9,126
2,460
217,166
243,034



At 31 December 2023

268,082
106,072
21,674
1,905,240
2,301,068



Depreciation


At 1 January 2023
36,261
18,017
4,423
683,323
742,024


Charge for the year on owned assets
63,766
32,870
6,480
580,941
684,057



At 31 December 2023

100,027
50,887
10,903
1,264,264
1,426,081



Net book value



At 31 December 2023
168,055
55,185
10,771
640,976
874,987



At 31 December 2022
217,539
78,929
14,791
1,004,751
1,316,010

Page 26

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
149,055
149,055

149,055
149,055


Other debtors due after more than one year comprises the rent deposit.

2023
2022
£
£

Due within one year

Other debtors
16,891
76,536

Prepayments and accrued income
179,213
119,425

196,104
195,961


Other debtors due within one year comprises balances due from directors.


13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,352,416
9,351,662

2,352,416
9,351,662



14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Payables
296,208
104,053

Other taxation and social security
158,314
175,480

Other creditors
48,318
31,691

Accruals
357,804
324,590

860,644
635,814


Page 27

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Provisions





Dilpaidation provision

£





At 1 January 2023
52,500



At 31 December 2023
52,500

The provision relates to potential dilapidations relating to the London office in accordance with the lease. The lease expires in 2026. 


16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,283 (2022 - 1,283) Ordinary shares of £0.01 each
13
13



17.


Reserves

Share premium account

Is made up of amounts paid over and above the nominal value of the share capital issued.

Other reserves

The capital contribution represents the valuation of share options granted to employees in the parent undertaking, Global Futures and Options Holdings Limited.

Profit and loss account

Includes all current retained profits and losses.

Page 28

 
GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Share-based payments

The parent entity has granted share options over its Ordinary shares to which FRS 102 Section 26 (share-based payments) is applicable. The charge was treated as an expense in this Company's figures as the relevant option holders were employees of the Company during the period.

Weighted average exercise price (pence)
2023
Number
2023
Weighted average exercise price
(pence)
2022
Number
2022

Outstanding at the beginning of the year

748

1,353

0
 
-
 
Granted during the year

748

1,105

748
 
1,353
 
Outstanding at the end of the year
0

2,458

0
 
1,353
 

2023
2022

Option pricing model used


Black Scholes

Black Scholes
 
Weighted average share price (pence)


24,500

24,500
 
Exercise price (pence)


.01

.01
 
Weighted average contractual life (days)


3650

3650
 
Expected volatility


25%

25%
 
Expected dividend growth rate


0%

0%
 
Risk-free interest rate


3.88

3.51%
 

2023
2022
£
£


Equity-settled schemes
133,260
250,576

133,260
250,576

The share options are issued to certain employees of the company and vest over three years. The options are exerciseable over 10 years and equity settled. 


19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £338,349 (2022 - £46,908). Contributions totalling £39,064 (2022 - £20,000) were payable to the fund at the reporting date and are included in creditors.

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GLOBAL FUTURES AND OPTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
220,698
220,698

Later than 1 year and not later than 5 years
404,613
625,311

625,311
846,009


21.


Transactions with directors

Included within other debtors is an amount of £15,396 due from R Melwani. This balance is made up of an opening balance of £53,372, advances of £26,505 and repayments of £64,481. This balance is unsecured, and repayable on demand. Interest was charged on the loan at 2%.
Also included within other debtors is an amount of £1,495 due from A Sen. This balance is made up of an opening balance of £23,164, advances of £90,838 and repayments of £112,507. This balance is unsecured, interest free and repayable on demand. Interest was charged on the loan at 2%.


22.


Related party transactions

The company has taken advantage of the exemption available in accordance with Section 33.1A of Financial Reporting Standard 102 whereby it has not disclosed transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
The directors are considered key management and their salaries are disclosed in note 7 to the financial statements.


23.


Post balance sheet events

Following the year end, the parent company has injected $4,062,500 as a capital injection into this company.


24.


Controlling party

The Company is a wholly owned subsidiary of Global Futures and Options Holdings Limited, a company registered in the Cayman Islands. The Registered Office and principal place of business is 190 Elgin Avenue, George Town, Grand Cayman, KY1-9008, Cayman Islands. 
Global Futures and Options Holdings Limited is the ultimate controlling party and the entity which prepares group financial statements. 
 
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