Company No:
Contents
DIRECTORS | J C S Chenevix Trench |
A L De Normann | |
K J Steele |
REGISTERED OFFICE | 22 Chancery Lane |
London | |
WC2A 1LS | |
England | |
United Kingdom |
BUSINESS ADDRESS | 83 Marylebone High Street |
London | |
W1U 4QW |
COMPANY NUMBER | 08531026 (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 May 2024.
PRINCIPAL ACTIVITY
The principal activity is the provision of investment management and related services.
REVIEW OF THE BUSINESS
During the financial year, the company continued the investment management activities commenced in 2015. The company made a profit before tax for the 2024 financial year of £142,995, which is similar to the profit before tax of £109,418 in 2023. The company’s turnover is a percentage of managed funds. The company intends to pursue similar activities during the next financial year and will be looking to increase the value of funds under management.
At the year end the company had capital and reserves of £684,216 (2023 - £571,071). These reserves exceed the company’s regulatory capital requirements and are more than adequate to enable the company to continue to trade for the foreseeable future.
The company is authorised and regulated by the Financial Conduct Authority with reference number 670881.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk to the company is a failure in operational controls or poor performance that could lead to reputational damage, loss of clients, compensation, penalties and potentially the loss of authorisation to carryout regulated activities. These could have a significant impact on the company's ability to continue in business.
Approved by the Board of Directors and signed on its behalf by:
A L De Normann
Director |
The directors present their report and the financial statements year ended 31 May 2024.
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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FINANCIAL INSTRUMENTS
*Liquidity risk*
Expenditure consists largely of fixed overheads. Liquid reserves are maintained to meet forthcoming expenses plus an appropriate margin. At present the company has sufficient liquid reserves in excess of anticipated needs.
*Credit risk*
Cash surpluses are only deposited with regulated financial institutions. Amounts due under management or service contracts are invoiced regularly and the creditworthiness of clients is monitored. Debtors are also monitored on an ongoing basis. The level of credit risk experienced by the company is taken into account for the purpose of its capital levels, in accordance with the company's FCA authorisation.
DISCLOSURE OF INFORMATION TO THE AUDITORS
Each director has taken the 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.
Approved by the Board of Directors and signed on its behalf by:
A L De Normann
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 Knox Capital Company Limited (the ‘company’) for the year ended 31 May 2024 which comprise the profit and loss account, statement of comprehensive Income, balance sheet, statement of changes in equity, statement of cashflows and notes to the financial statements, 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).
In our opinion, the financial statements:
* give a true and fair view of the state of the company’s affairs as at 31 May 2024 and of its profit for the year then ended;
* have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
* have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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. 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.
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 material misstatements in the strategic report and the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
* adequate accounting records have not been kept, 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.
As explained more fully in the directors’ responsibilities statement set out on page 4, 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.
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, UK Company Law, UK tax legislation and FCA Regulations.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
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 Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 | 2024 | 2023 | ||
£ | £ | |||
Turnover | 2 |
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Administrative expenses | (
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Other operating income | 3 |
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Operating profit |
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Other non-operating income |
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Profit before interest and taxation | 123,279 | 98,624 | ||
Interest receivable and similar income |
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Other finance income |
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Profit before taxation | 4 |
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Tax on profit | 8 | (
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Profit for the financial year |
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2024 | 2023 | |||
£ | £ | |||
Profit for the financial year |
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Other comprehensive income | 0 | 0 | ||
Total comprehensive income |
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Note | 2024 | 2023 | ||
£ | £ | |||
Fixed assets | ||||
Tangible assets | 9 |
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Investments | 10 |
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569,049 | 465,856 | |||
Current assets | ||||
Debtors | 11 |
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Cash at bank and in hand | 12 |
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180,630 | 158,126 | |||
Creditors: amounts falling due within one year | 13 | (
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Net current assets | 130,214 | 111,816 | ||
Total assets less current liabilities | 699,263 | 577,672 | ||
Provision for liabilities | 14 | (
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Net assets | 684,216 | 571,071 | ||
Capital and reserves | 16 | |||
Called-up share capital |
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Share premium account |
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Profit and loss account |
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Total shareholders' funds | 684,216 | 571,071 |
The financial statements of Knox Capital Company Limited (registered number:
A L De Normann
Director |
Called-up share capital | Share premium account | Profit and loss account | Total | ||||
£ | £ | £ | £ | ||||
At 01 June 2022 |
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Profit for the financial year |
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Total comprehensive income |
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At 31 May 2023 |
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At 01 June 2023 |
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Profit for the financial year |
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Total comprehensive income |
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At 31 May 2024 |
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2024 | 2023 | ||
£ | £ | ||
Net cash flows from operating activities (note 19) |
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Cash flows from investing activities | |||
Purchase of plant and machinery | (
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Dividends received from listed investments |
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Purchases of listed investments | (
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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/(decrease) in cash and cash equivalents |
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Cash and cash equivalents at beginning of year |
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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.
Knox Capital Company 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 22 Chancery Lane, London, WC2A 1LS, England, United Kingdom. The principal place of business is 83 Marylebone High Street, London, W1U 4QW.
The principal activities are set out in the Strategic Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with The 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 directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Current 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 taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are recognised in respect of unused tax losses only to the extent that they are more likely than not to be recovered.
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Fixtures and fittings |
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All investments are held in OEICs and therefore the fair value can be reliably ascertained based on the underlying value of their net assets. Any changes in fair value are recognised in the profit or loss.
Dividends on OEICs are recognised in income when receivable.
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.
Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the relevant instrument. Cash or basic debt instruments are initially measured at transaction price and subsequently at amortised cost. These financial assets are considered for objective evidence of impairment at the end of each reporting period and any impairment is recognised in profit and loss. Investments in OEICs are measured at fair value, with changes being recognised through the profit and loss.
Turnover represents the fair value of goods/services provided to customers 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.
An analysis of the Company's turnover is as follows:
2024 | 2023 | ||
£ | £ | ||
Rendering of services |
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2024 | 2023 | ||
£ | £ | ||
Rental income |
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Profit before taxation is stated after charging/(crediting):
2024 | 2023 | ||
£ | £ | ||
Depreciation of tangible fixed assets (note 9) |
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Operating lease rentals |
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Gain on fair value movement of investments (note 10) | (
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An analysis of the auditor's remuneration is as follows:
2024 | 2023 | ||
£ | £ | ||
Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements: | 6,360 | 5,760 | |
Total audit fees |
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2024 | 2023 | ||
Number | Number | ||
The average monthly number of employees (including directors) was: |
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Their aggregate remuneration comprised:
2024 | 2023 | ||
£ | £ | ||
Wages and salaries |
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Social security costs |
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28,714 | 28,854 |
2024 | 2023 | ||
£ | £ | ||
Directors' emoluments |
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2024 | 2023 | ||
£ | £ | ||
Current tax on profit | |||
UK corporation tax |
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Total current tax |
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Deferred tax | |||
Origination and reversal of timing differences |
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Total deferred tax |
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Total tax on profit |
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The tax assessed for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK:
2024 | 2023 | ||
£ | £ | ||
Profit before taxation | 142,995 | 109,418 | |
Tax on profit at standard UK corporation tax rate of 25.00% (2023: 20.00%) |
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Effects of: | |||
Expenses not deductible for tax purposes |
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Adjustments in respect of prior years | (
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Tax decrease from other short-term timing differences | (1,712) | (264) | |
Tax decrease from effect of dividends from UK companies | (4,852) | (2,159) | |
Tax (decrease)/increase from change in tax rate | 0 | 331 | |
Total tax charge for year | 29,850 | 20,263 |
At 31 May 2024 deferred tax liabilities amounted to £15,047 (2022: £6,601).
Fixtures and fittings | Total | ||
£ | £ | ||
Cost | |||
At 01 June 2023 |
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Additions |
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At 31 May 2024 |
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Accumulated depreciation | |||
At 01 June 2023 |
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Charge for the financial year |
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At 31 May 2024 |
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Net book value | |||
At 31 May 2024 |
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At 31 May 2023 |
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Listed investments | Total | ||
£ | £ | ||
Cost or valuation before impairment | |||
At 01 June 2023 |
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Additions |
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Movement in fair value |
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At 31 May 2024 |
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Carrying value at 31 May 2024 |
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Carrying value at 31 May 2023 |
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2024 | 2023 | ||
£ | £ | ||
Trade debtors |
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Other debtors |
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Prepayments and accrued income |
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2024 | 2023 | ||
£ | £ | ||
Cash at bank and in hand |
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2024 | 2023 | ||
£ | £ | ||
Directors loans (note 20) |
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Trade creditors |
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Corporation tax |
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Payroll taxes payable |
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Accruals |
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Deferred taxation | Total | ||
£ | £ | ||
At 01 June 2023 |
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6,601 | |
Charged to the Profit and Loss Account |
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8,446 | |
At 31 May 2024 |
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15,047 | |
Deferred tax
2024 | 2023 | ||
£ | £ | ||
Other timing differences |
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Provision for deferred tax |
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The carrying values of the Company’s financial assets and liabilities are summarised by category below:
2024 | 2023 | ||
£ | £ | ||
Financial assets | |||
Measured at fair value through profit or loss | |||
Investments in listed equity instruments (note 10) |
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Measured at undiscounted amount receivable | |||
Trade debtors (note 11) |
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Other debtors (note 11) |
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- Accrued income | 1,200 | 2,200 | |
- Cash at bank and in hand | 82,129 | 62,217 | |
Prepayments | 27,189 | 0 | |
746,547 | 596,103 | ||
Financial liabilities | |||
Measured at amortised cost | |||
- Accruals | (16,406) | (14,919) | |
Measured at undiscounted amount payable | |||
Trade creditors (note 13) | (
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Shareholder loans | (
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(28,178) | (27,171) |
2024 | 2023 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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Presented as follows: | |||
Called-up share capital presented as equity | 13,000 | 13,000 |
The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2024 | 2023 | ||
£ | £ | ||
within one year |
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between one and five years |
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2024 | 2023 | ||
£ | £ | ||
Operating profit |
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Adjustment for: | |||
Depreciation and amortisation |
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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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Income taxes paid | (
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Interest received |
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Net cash flows from operating activities |
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Transactions with related parties or connected persons
Transactions with the entity’s directors (or members of its governing body)
Amounts owed to directors
2024 | 2023 | ||
£ | £ | ||
Amounts owed to directors |
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Transactions with directors
The directors are interested in a client of the company, the CCM Knox Global Balanced Fund as it is managed by Jonathan Chenevix-Trench and Kenneth Steele. Investment management fees chargeable to the fund in respect of the year amount to £266,282 (2023 - £260,906).
During the year, the company purchased £69,410 (2023 - £160,794) of additional shares in CCM Knox Global Balanced Fund, a client of the company, bringing the total cost of the company’s shares in the fund to £508,862 (2023 - £439,452). The shares were revalued to £565,915 as at 31 May 2024, and a gain in fair value of £33,439 (2023 - £9,124) has been recognised in profit and loss. During the year, dividends of £19,410 (2023 - £10,794) were received from the fund.
Key management compensation
There are no key management personnel other than the directors. Remuneration is shown in note 7.
The Company is controlled by the directors.