Company registration number:
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
Activity
The principal activity of the Cushon Money Limited (“the Company”) continues to be provision of workplace savings, products and services. The Company is a subsidiary of Cushon Group Limited. On 1 June 2023, NatWest Group acquired c.85% of the shares in Cushon Group Limited. The Company is regulated by Financial Conduct Authority.
Business review
The directors are satisfied with the Company’s performance in the year, during the year we achieved the following:
∙Adding large brand names such as Deloitte and Greene King to an already impressive brand roster.
∙Grown our total assets under management by 18% to over £86m at the year end, with regular monthly inflows customer numbers increasing during the period.
The Company will be guided by its shareholders for future development. Financial performance The Company prepares its financial statements in the functional currency, pounds sterling (‘£’ or ‘sterling’). The Company’s financial performance is presented on pages 9-10. Turnover for the period was £218,843 (31 March 2023: £241,223) and expenses for the period were £92,369 (31 March 2023: £77,344. The operating profit for the period was £126,474 (31 March 2023: £163,879), the profit for the period was £141,742 (31 March 2023: £165,564). No dividend was paid during the period (31 March 2023: £nil). At the end of the period, the balance sheet showed net assets of £931,708 (31 March 2023: £789,966).
The Company’s risk management framework has been subject to development and enhancement to comply with the wider NatWest Group risk framework and standards as part of the integration of Cushon Group with NatWest Group.
The principal risks associated with the Company are as follows: Credit risk Credit risk is the risk of loss caused by the failure of a counterparty to perform its contractual obligations. The Company’s principal exposures relate to banking counterparties where the Company’s own funds are held. The Company is also exposed to credit risk relating to default by its custody service providers and banks holding client money assets. Exposure to default by these providers is mitigated through appropriate due diligence and contractual provisions. Market risk Market risk refers to the risk of an adverse impact on earnings resulting from changes in market factors, such as downturns, foreign exchange rates and interest rates and their effect on the Company’s revenue. The risk is substantially mitigated because the Company acts as agent in the placing of aggregated deals with fund managers and does not deal on its own account.
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STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
The Company does receive fees calculated on the value of client assets under management which can be influenced by the underlying market risk of investments. This could in turn affect the profitability and capital of the Company and is considered in stress testing.
Business risk Business risk is defined as the risk that the Company is not able to carry out its business plan or desired strategy due to internal or external changes to its environment – including legal and regulatory. The Company assesses business risks within its risk register and implements appropriate mitigating controls to manage them where possible. Liquidity risk Liquidity risk is the risk that the Company, although solvent, either does not have sufficient cash resources available to enable it to meets its obligations as they fall due or can secure such resources only at excessive cost. The Company acts as an agent in placing of trades, and its terms and conditions have been designed to ensure that the timing of its settlement obligations are properly matched so the Company is not obliged to settle until the corresponding counterparty has settled. Operational risk Operational risk is the risk of loss or other adverse consequence on business outcomes arising from inadequate or failed internal processes, people or systems, or from external events. The Company accepts a degree of exposure to operational risk where exposures arise as a result of core strategic activity, however, it has limited appetite for operational losses due to the likely customer impact, reputational damage and opportunity costs. The Company aims to implement effective controls to reduce operational risk exposures except where the costs of such controls exceed the expected benefits. Controls and risk mitigation strategies, including the use of insurance where appropriate, are put in place to address operational risk exposures in line with agreed risk appetites.
This section of the Strategic report describes how the directors have had regard to the matters set out in section 172(1) (a) to (f), and forms the directors’ statement required under section 414CZA, of the Companies Act 2006.
Section 172(1) contains one of the statutory duties of the directors: it requires them to promote the success of the Company for the benefit of its members as a whole, whilst having regard to other stakeholders and matters as set out in s.172(1) (a) to (f). These include the likely long-term consequences of directors’ decisions; colleague interests; the need to foster the Company’s business relationships with service providers, customers and others; the Company’s impact on the community and environment; its reputation, and the need to act fairly between the Company’s shareholders. Directors are supported in the discharge of their duties by the Company Secretary. All directors receive guidance on their statutory duties, including Section 172. During 2023, the Board considered routine matters, including changes to its board of directors, its 2022 Annual Report, a change of accounting reference date to align its financial reporting period with that of its ultimate parent, NatWest Group plc, and completed the annual review of the Company’s Internal Capital and Risk Assessment Process. Relevant stakeholder interests were considered by the Board and the long-term consequences of the Board’s decisions. Further information on how NatWest Group (which includes the Company) engages with its stakeholders can be found in the NatWest Group plc 2023 Annual Report and Accounts and at www.natwestgroup.com.
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STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
Going concern
These financial statements are prepared on a going concern basis.
The directors are responsible for preparing the annual report and financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare a Strategic report, Directors’ report and 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 and then apply them consistently;
∙make judgements and 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
∙make an assessment of the Company’s ability to continue as a going concern.
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 Strategic report, Directors' report and financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the directors at the date of approval of this report confirms that:
∙directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information, and to establish that the Company’s auditor is aware of that information.
This confirmation is given and shall be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
NatWest Group plc has indemnified all of the directors under qualifying third-party terms.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
The Strategic report includes the review of the year, risks, disclosure of information to auditors, directors’ indemnities and note of post balance sheet events. Details of the board’s engagement with employees, customers, suppliers and others, and how these stakeholders’ interests have influenced board decision making are set out on pages 2 and 3 of the Strategic report which includes a section 172(1) statement.
On 31 May 2024, the registered office of the Company changed from Stephenson House, 2 Cherry Orchard Road, Croydon, CR0 6BA to 250 Bishopsgate, London, EC2M 4AA.
Menzies LLP has expressed its willingness to continue in office as auditor.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUSHON MONEY LIMITED
We have audited the financial statements of Cushon Money Limited (the 'Company') for the period ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' 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 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.
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 Auditors' 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUSHON MONEY LIMITED (CONTINUED)
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 period 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 material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUSHON MONEY LIMITED (CONTINUED)
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 Auditors' 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:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
°The Companies Act 2006;
°Financial Reporting Standard 102;
°UK employment legislation;
°Industry specific accreditations as required by the company's customers;
°General Data Protection Regulations; and
°UK tax legislation.
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary. We corroborated our inquiries through our review of board minutes.
∙The engagement responsible individual assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included;
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgements made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°The application of inappropriate judgements or estimation to manipulate the company's financial position;
°Posting of unusual journals and complex transactions; and
°The use of management override of controls to manipulate results, or to cause the company to enter into transactions not in its best interests.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUSHON MONEY LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' 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 Auditors' 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
Chartered Accountants
Statutory Auditor
Victoria House
50-58 Victoria Road
Hampshire
GU14 7PG
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 17 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Cushon Money Limited is a private company limited by shares, registered in England and Wales. The address of its registered office, which is the same as its principal place of business, is disclosed on the company information page.
During the period the financial reporting year end was shortened from 31 March 2024 to 31 December 2023, therefore the current 9 month period and the prior 12 month period are not entirely comparable. The directors decided to make this change in order to remain consistent with the financial year end of other group companies.
3.Accounting policies
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 company's functional and presentational currency is GBP, rounded to the nearest pound sterling.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of NatWest Group plc as at 31 December 2023 and these financial statements may be obtained from Companies House.
The Company is exempt is exempt under section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements, provided certain conditions are met. The Company and its subsidiaries are included in the consolidated audited financial statements of NatWest Group plc. These financial statements therefore present the financial position and financial performance of the Company as a single entity.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
3.Accounting policies (continued)
The directors have undertaken a detailed assessment of the funding requirements of the business in the next
12 months, utilising various stressed scenarios to understand sensitivities and potential risks. The directors have compared these funding scenarios with available and committed funds to assess the financial position of the business. The directors have subsequently satisfied themselves as to the financial position of the business and its ability to continue to trade as a going concern. Furthermore, the going concern status can be supported by the recent acquisition of the group headed by Cushon Holdings Limited by NW A Holdings Limited.
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
The directors do not consider there to be any significant judgements made in the process of applying the entity's accounting policies. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and by their nature, will rarely equal the related actual outcome. The directors do not consider that there are any key sources of estimation uncertainty that impact the Company.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
On 1 April 2023 the corporation tax rate increased from 19% to 25%.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Profit and loss account
The company is a wholly owned subsidiary of Cushon Group Limited. On 16 November 2022, 100% of Cushon Group Limited shares were acquired by Cushon Holdings Limited. On 1 June 2023, 100% of Cushon Holdings Limited was acquired by NW A Holdings Limited. NatWest Group plc is the ultimate parent undertaking and incorporated in the United Kingdom.
The largest and smallest group in which the results of the company are consolidated is that headed by NatWest Group plc. The consolidated financial statements are made available to the public and may be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
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