Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
CONTENTS
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
INFORMATION
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The members present their annual report together with the audited financial statements of Newcore Capital Management Finance LLP (the "LLP" and together the "Group") for the year ended 31 December 2023.
Principal activities
The principal objective of the LLP continued to be that of providing investment management advice and services. Newcore Capital Management Finance LLP is authorised to conduct investment business by the Financial Conduct Authority (FCA), registration number 582190.
Designated Members
H W J Llewelyn, Professor A E Baum, H J Savory and N Sarkhel were designated members of the LLP and the Group throughout the period.
Members
J Scriven, H W Smart, J Adams and R Patel were members of the LLP and the Group throughout the period.
J K Chatellier was a member of the LLP and the Group until 26 October 2023.
Members' capital and interests
Each member's subscription to the capital of the LLP is determined by their share of the profit and is repayable following retirement from the LLP.
Members are remunerated from the profits of the LLP and are required to make their own provision for pensions and other benefits. Profits are allocated and divided between members after finalisation of the financial statements.
IFPR Disclosures
The LLP is authorised and regulated in the UK by the Financial Conduct Authority ("FCA").
The MIFIDPRU 8 Disclosures are published and are available on Newcore's website. https://www.newcorecapital .com. Business Review Newcore manages several funds that invest in property or property-related assets. Risk Management Objectives and Policies Newcore's general risk management objective is to develop systems and controls that mitigate risk to a level that does not require the allocation of additional capital. Newcore's 2024 Internal Capital Adequacy and Risk Assessment ("ICARA") did not identify any internal or external risks that resulted in Newcore having to increase its capital levels. Accordingly, Newcore's business and operational risks are limited. Governance and Risk Framework Newcore oversees and manages its risks through a combination of procedures and processes including a Compliance Manual, routine monitoring of policies and procedures, a Business Continuity Plan, an annual independent audit and reporting process, and the use of an independent UK compliance consultant. Newcore's policies, procedures and financial controls are regularly reviewed and revised as needed.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Key Risks
Market Risk Market risk is the risk that the value of, or income arising from, the LLP's assets and liabilities varies as a result of changes in the market price of financial assets, changes exchange rates or changes in interest rates. Newcore does not take proprietary trading risk. The firm's risk management activities are undertaken on behalf of clients as the LLP's own money is not at risk. The only market risk that the firm faces is currency risk, and the members do not consider this to be significant as very little income and expenditure is denominated in currencies other than sterling. Credit Risk Credit risk refers to the potential risk that customers fail to meet their obligations as they fall due. The principal credit risk that the LLP faces is in respect of customers for fees earned but not received. Fees are usually received promptly. The LLP also has credit exposure to its bankers but considers this risk to be minimal. Liquidity Risk Newcore's liquidity policy is to maintain sufficient liquid resources to cover cash flow imbalances and fluctuations in fees received/receivable. The firm maintains sufficient cash balances with its banking partners to cover liquidity risk. Futhermore, Newcore continuously monitors income and expenditure levels and adjusts plans accordingly. Operational Risk Operational risk is the risk of loss arising from failed or inadequate internal processes or systems, human error or other factors. The risk is managed by the members who have responsibility for putting in place appropriate controls for the business. The LLP makes use of outside consultants where necessary to monitor the effectiveness of the controls. Business Risk Business risk is the risk that the LLP may not be able to carry out its business plan and could therefore suffer losses if income falls. This is a risk that all businesses face. The members continually monitor income and expenditure levels and adjust their plans accordingly. Concentration Risk Concentration risk is the risk that the firm is overly dependent upon any one customer or any group connected customers either in terms of income dependency or in terms of credit risk. The members actively monitor and seek to diversify concentration risk.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Disclosure of information to auditor
Each of the persons who are members at the time when this Members' Report is approved has confirmed that:
∙so far as that member is aware, there is no relevant audit information of which the Group's auditor is unaware, and
∙that member has taken all the steps that ought to have been taken as a member in order to be aware of any relevant audit information and to establish that the Group's auditor is aware of that information.
This report was approved by the members and signed on their behalf by:
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
The members are responsible for preparing the annual report and theconsolidated financial statements in accordance with applicable law and regulations.
Company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), requires the members to prepare financial statements for each financial year. Under that law the members 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, as applied to LLPs, the members 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 LLP and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the members are required to:
∙select suitable accounting policies for the Group'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 Group will continue in business.
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and the Group and to enable them to ensure that the financial statements comply with the Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008. They are also responsible for safeguarding the assets of the LLP and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWCORE CAPITAL MANAGEMENT FINANCE LLP
FOR THE YEAR ENDED 31 DECEMBER 2023
We have audited the financial statements of Newcore Capital Management Finance LLP (the 'parent LLP') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, the Consolidated Balance Sheet, the LLP Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Reconciliation of Members' Interests, the LLP Reconciliation of Members' Interests 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent LLP'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 members with respect to going concern are described in the relevant sections of this report.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWCORE CAPITAL MANAGEMENT FINANCE LLP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The members are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and 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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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWCORE CAPITAL MANAGEMENT FINANCE LLP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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 Group 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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations:
∙we identified the laws and regulations applicable to the LLP through discussions with members and other management, and from our commercial knowledge and experience of the LLP's sector;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the LLP, including the Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008, taxation legislation and data protection, employment and health and safety legislation;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence, reviewing submissions of Newcore Capital Management Finance LLP to the FCA, reviewing other correspondence with the FCA; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the LLP's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
To address the risk of fraud throughout management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙tested journal entries to identify unusual transactions; and
∙investigated the rationale behind signifincat or unusual transactions
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙reading the minutes of meetings of those charged with governance;
∙enquiring of management as to actual and potential litigation and claims: and
∙reviewing correspondence with relevant regulators including the FCA.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWCORE CAPITAL MANAGEMENT FINANCE LLP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members and other management and the inspection of regulatory and legal correspondence, if any.
Material mistatements that arise due to fraud can be harder to detect that those that arise from error as they may invovle deliberate concealment or collusion.
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.
This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP'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 LLP and the LLP'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
16 Great Queen Street
Covent Garden
WC2B 5AH
Date:
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the members and were signed on their behalf by:
The notes on pages 18 to 30 form part of these financial statements.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
LLP BALANCE SHEET
AS AT 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
LLP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the members and were signed on their behalf by:
The notes on pages 18 to 30 form part of these financial statements.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
CONSOLIDATED RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
LLP RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Newcore Capital Management Finance LLP is a limited liability partnership registered in England and Wales. The address of its registered office and principal place of business is First Floor, 50 Marshall Street, London, W1F 9BQ.
The financial statements are presented in Sterling (£), which is the functional currency of the LLP. Monetary amounts in these financial statements are rounded to the nearest £.
2.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 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The LLP has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the LLP and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. Their results are removed from the consolidated financial statements from the date control ceases. In respect of the LLP's direct and indirect subsidiaries which are managing trustees of Exempt Unit Trusts ('EPUT Limited entities') and General Partners in investment funds ('GP Limited entities') as detailed in note 10, the consolidated financial statements do not include any income, expenses, assets or liabilities held by these entities on behalf of the Exempt Unit Trusts and Investment Funds.
As part of the preparation of the financial statements, the designated members have carried out a review in respect of the LLP's and Group's going concern status. The designated members have examined the prospects of the business given the current, and anticipated, economic climate, for a period of at least twelve months from the date of approval of these financial statements.
The designated members have a reasonable expectation that the LLP and the Group have adequate resources to continue in operational existence for the foreseeable future. Therefore the LLP and the Group continue to adopt the going concern basis in preparing the consolidated financial statements.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Revenue comprises amounts receivable in respect of advisory and operational services by the LLP. Advisory and operational fees are recognised over the period in which the services were provided.
A division of profits is the mechanism by which the profits of a Group become a debt due to members. A division may be automatic or discretionary, may relate to some or all of the profits for a financial period and may take place during or after the end of a financial period.
An automatic division of profits is one where the Group does not have an unconditional right to avoid making a division of an amount of profits based on the members' agreement in force at the time, whereas a discretionary division of profits requires a decision to be made by the Group, which it has the unconditional right to avoid making.
The Group divides profits discretionarily. Discretionary divisions of profits are recognised as amounts due to members, although may be used to offset amounts which have been drawn by members, which are recognised as loan assets repayable.
The Group classifies distributions of profits as operating cash flows in the Statement of Cash Flows.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Profit and Loss Account includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
The Group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the Group becomes party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
The Group’s policies for its major classes of financial assets and financial liabilities are set out below.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, loans from fellow group companies, 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 payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the Group would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Derecognition of financial assets and financial liabilities
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) despite having retained some significant risks and rewards of ownership, 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The LLP has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements. The profit after tax of the parent LLP for the year was £
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Loans and other debts due to members may be further analysed as follows:
Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.
There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Following the finalisation of the financial statements for the year ended 31 December 2022 it was identified that management fee expenses recognised in respect of the allocation of salary costs and other general overheads from an entity under common control had been overstated as at 31 December 2022. The overstatement is considered material and accordingly a prior year adjustment has been recognised to correct the error. The adjustment has increased the profit made in the year to 31 December 2022 by £59,500 with a corresponding increase in loans and other debts due to Members. It has also increased the balance of the loan due to the LLP by the entity under common control.
The Members have also recognised a prior year adjustment to reclassify prepayments totalling £162,011 previously recorded on the balance sheet of the LLP to the loan balance with the entity under common control. The release of these prepayments will be recharged by the entity under common control to the LLP, however the underlying supplier agreement which the prepayments were recorded in respect of was with the entity under common control. This reclassification has had no impact on profit and loss or on the net assets of the LLP. During the year the Members identified that the LLP had not recognised its share of income charged to additional investors in two investment funds representing the profit share that would have been payable by those investors had their investment been committed from the first closing dates of the respective funds. A prior year adjustment has been recognised to reflect this income owing to the LLP in respect of prior periods. The adjustment has increased amounts due to Members brought forward as at 1 January 2022 by £75,133. The LLP's profit made in the year to 31 December 2022 has increased by £89,137. There has been an increase in debtors of £165,020. During the year the Members have reviewed the basis of consolidation adopted in the preparation of the Newcore Capital Management Finance LLP financial statements and a restatement of comparatives has been made to amend the presentation of the Group's financial results. The restatement has been made in respect of the LLP's direct and indirect subsidiaries which are managing trustees of Exempt Unit Trusts ('EPUT Limited entities') and General Partners of investment funds ('GP Limited entities') as detailed in note 10. In previous years the Group financial statements have included income, expenses, assets and liabilities that are held or transacted by the EPUT Limited entities and the GP Limited entities on trust of the Exempt Unit Trust entities and the investment funds. The entities to which this applies are the direct and indirect subsidiaries detailed in the Fixed Asset Investments note 10. Following the assessment that the EPUT Limited entities and GP Limited entities do not have beneficial entitlement to the income, expenses, assets and liabilities, a prior year adjustment has been recorded to remove their impact from the Group financial statements. The prior year adjustment has had no net impact on the profit recorded in the year to 31 December 2022 but decreased Turnover and Administrative Expenses by £266,222. In the balance sheet the adjustment has had no net impact, but has reduced Debtors by £56,909,495, reduced Cash at Bank and in Hand by £3,374,178, and reduced Creditors by £60,283,673. The amounts reduced represent the assets and liabilities held by the EPUT Limited and GP Limited entities on trust of the Exempt Unit Trust entities and the investment funds.
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NEWCORE CAPITAL MANAGEMENT FINANCE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The ultimate controlling party of Newcore Capital Management Finance LLP, and its group, during the current and prior year was H W J Llewelyn, by virtue of his majority equity share.
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