Company No:
Contents
DIRECTORS | Marc Joseph Gabelli |
Douglas Jamieson | |
Manjit Singh Kalha | |
Evan David Miller | |
Gustavo Pifano |
REGISTERED OFFICE | 3 St James's Place |
St. James's Place | |
London | |
SW1A 1NP | |
England | |
United Kingdom |
COMPANY NUMBER | 07118844 (England and Wales) |
AUDITOR | Dixon Wilson Audit Services LLP |
22 Chancery Lane | |
London | |
WC2A 1LS |
The directors present their Strategic Report for the financial year ended 31 December 2023.
REVIEW OF THE BUSINESS
The company continued to provide services to its parent company in the year and there was no change in revenues. Administrative expenses remained at a similar level to the previous year meaning the company made a loss. The profit before tax for the 2023 financial year is £14,096 (2022 loss before tax - £46,197). The company ends the year in a reasonable position with net assets of £118,795 (2022 - £104,699), including £704,191 (2022 - £705,726) of cash reserves. The directors are confident in the reliance of the company on the continued support of the wider group, and believe that the group has adequate financial resources to support the company, and that its operations are sufficiently robust.
As the company's only function is to provide services to its parent company, there are no key performance indicators that the board considers to be material to the company. The company plans to continue its operations of providing intragroup services in the future.
PRINCIPAL RISKS AND UNCERTAINTIES
Currently the company's main source of revenue is from its parent company, meaning that it is reliant on that parent company. The company is also exposed to movements in exchange rates and is reliant on maintaining its FCA authorisation.
Approved by the Board of Directors and signed on its behalf by:
Evan David Miller
Director |
The directors present their annual report on the affairs of the Company, together with the financial statements, for the financial year ended 31 December 2023.
PRINCIPAL ACTIVITIES
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Indemnity provision for directors
Qualifying third party indemnity provision for directors was in place at the date of approval of these financial statements.
Price risk, credit risk, liquidity risk and cash flow risk
Investments of cash surpluses are made through reputable banks. The company is exposed to foreign currency risk on some of its bank balances, which are not hedged. The company is also exposed to interest rate risk on cash surpluses.
S172(1) Companies Act 2006 reporting
The directors have complied with their duty under s172 CA2006 to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. Where relevant, the manner in which they have had regard to the matters set out in s172(1)(a) to (f) are set out in the business review above.
Approved by the Board of Directors and signed on its behalf by:
Evan David Miller
Director |
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 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 financial period.
In preparing these financial statements, the directors are required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. The directors 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.
Report on the audit of the financial statements
We have audited the financial statements of Gabelli Securities International UK Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies.
In our opinion the financial statements of Gabelli Securities International UK 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 financial 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.
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.
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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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.
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 gained an understanding of the legal and regulatory framework applicable to the company by considering, amongst other things, the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the assessed level of risk, but recognised that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation, and FCA regulations.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, and consideration of the firm’s FCA scope of permission. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.
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.
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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
* 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.
For and on behalf of
Statutory Auditor
London
WC2A 1LS
Note | 2023 | 2022 | ||
£ | £ | |||
Turnover | 2 |
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Cost of sales | (
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Gross profit |
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Administrative expenses | (
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Operating profit/(loss) and profit/(loss) before taxation | 3 |
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Tax on profit/(loss) |
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Profit/(loss) for the financial year |
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Note | 2023 | 2022 | ||
£ | £ | |||
Current assets | ||||
Debtors | 7 |
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Cash at bank and in hand | 8 |
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1,440,147 | 1,083,982 | |||
Creditors: amounts falling due within one year | 9 | (
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Net current assets | 118,795 | 104,699 | ||
Total assets less current liabilities | 118,795 | 104,699 | ||
Net assets | 118,795 | 104,699 | ||
Capital and reserves | 11 | |||
Called-up share capital |
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Profit and loss account | (
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Total shareholder's funds | 118,795 | 104,699 |
The financial statements of Gabelli Securities International UK Limited (registered number:
Evan David Miller
Director |
Called-up share capital | Profit and loss account | Total | |||
£ | £ | £ | |||
At 01 January 2022 |
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Loss for the financial year |
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Total comprehensive loss |
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At 31 December 2022 |
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At 01 January 2023 |
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Profit for the financial year |
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Total comprehensive income |
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At 31 December 2023 |
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2023 | 2022 | ||
£ | £ | ||
Net cash flows from operating activities (note 12) |
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Cash flows from investing activities | |||
Net cash flows from investing activities |
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Cash flows from financing activities | |||
Net cash flows from financing activities |
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of year |
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Effect of foreign exchange rate changes | (
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Cash and cash equivalents at end of year |
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Reconciliation to cash at bank and in hand: | |||
Cash at bank and in hand at end of year |
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Cash and cash equivalents at end of year |
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The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Gabelli Securities International UK Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 3 St James's Place, St. James's Place, London, SW1A 1NP, England, United Kingdom.
The principal activities are set out in the Directors Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
The financial statements have been prepared on a going concern basis.
In assessing whether the going concern basis is appropriate, the directors considered that the company is reliant on the continued support of the wider group, and believe that the group has adequate financial resources to support the company, and that its operations are sufficiently robust. The directors are therefore satisfied that the going concern basis is appropriate.
Exchange differences are recognised in the Profit and Loss Account in the period in which they arise.
The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Turnover represents intercompany fees provided to group entities during the financial year, excluding value added tax.
Turnover is wholly attributable to the principal activity of the Company and arises solely within the United Kingdom.
Operating profit/(loss) and profit/(loss) before taxation is stated after charging/(crediting):
2023 | 2022 | ||
£ | £ | ||
Foreign exchange losses/(gains) |
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An analysis of the auditor's remuneration is as follows:
2023 | 2022 | ||
£ | £ | ||
Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements: | 5,970 | 5,580 | |
Fees payable to the Company’s auditor and its associates for other services: | |||
Preparation of the statutory accounts and corporation tax return | 2,760 | 2,280 | |
Total audit fees |
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2023 | 2022 | ||
Number | Number | ||
The average monthly number of employees (including directors) was: |
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Their aggregate remuneration comprised:
2023 | 2022 | ||
£ | £ | ||
Wages and salaries |
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Social security costs |
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Other retirement benefit costs |
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68,341 | 80,028 |
2023 | 2022 | ||
£ | £ | ||
Directors' emoluments |
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2023 | 2022 | ||
£ | £ | ||
Amounts owed by Group undertakings (note 13) |
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Amounts owed by Parent undertakings (note 13) |
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Prepayments |
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2023 | 2022 | ||
£ | £ | ||
Cash at bank and in hand |
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2023 | 2022 | ||
£ | £ | ||
Amounts owed to Group undertakings (note 13) |
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Accruals |
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Other creditors |
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The carrying values of the Company’s financial assets and liabilities are summarised by category below:
2023 | 2022 | ||
£ | £ | ||
Financial assets | |||
Measured at undiscounted amount receivable | |||
Amounts owed by Group undertakings (note 7) |
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Amounts owed by Parent undertakings (note 7) |
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- Cash | 704,191 | 705,726 | |
1,434,098 | 1,078,633 | ||
Financial liabilities | |||
Measured at undiscounted amount payable | |||
Other payables (note 9) | (
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Amounts owed to Group undertakings (note 9) | (
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- Accruals | (8,000) | (8,000) | |
(1,320,152) | (979,283) |
2023 | 2022 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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Presented as follows: | |||
Called-up share capital presented as equity | 125,000 | 125,000 |
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.
2023 | 2022 | ||
£ | £ | ||
Operating profit/(loss) |
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Adjustment for: | |||
Foreign exchange (gain)/loss |
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Operating cash flows before movement in working capital |
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Increase in debtors | (
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Increase in creditors |
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Cash generated by operations |
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Net cash flows from operating activities |
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The Company has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the group of companies of which the Company is a wholly owned member.
Transactions with group companies
Amounts owed by Group undertakings
2023 | 2022 | ||
£ | £ | ||
Amounts owed by group companies |
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Amounts owed by Parent undertakings
2023 | 2022 | ||
£ | £ | ||
Amounts owed by parent company |
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Transactions with related parties or connected persons
Amounts owed by related parties
2023 | 2022 | ||
£ | £ | ||
1,321,353 | 964,860 |
The company's ultimate parent is Associated Capital Inc, incorporated in the USA.
The ultimate controlling party is Mario Gabelli.
Parent of smallest group for which group accounts are drawn up:
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2023 | 2022 | ||
£ | £ | ||
Turnover | |||
Sales |
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Cost of sales | |||
Direct costs | (
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Gross profit |
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Gross profit percentage | 39.14% | 100.00% | |
Administrative expenses | |||
Directors' salaries | (
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Directors' employers NI | (
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Directors' pensions | (
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Rent | (
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Bank charges | (
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Insurance | (
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(Loss)/gain on foreign exchange transactions | (
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Audit fees | (
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Accountancy fees | (
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Legal and professional fees | (
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Client entertainment | (
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(125,620) | (96,197) | ||
Operating profit/(loss) and profit/(loss) before taxation |
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