Company registration number 04039591 (England and Wales)
TORCH PARTNERS CORPORATE FINANCE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TORCH PARTNERS CORPORATE FINANCE LIMITED
COMPANY INFORMATION
Director
R Robson
Secretary
Vistra Cosec Limited
Company number
04039591
Registered office
Suite 1, 7th Floor
50 Broadway
London
SW1H 0BL
Auditor
TC Group
Devonshire House
1 Devonshire Street
London
W1W 5DR
Business address
33 Cavendish Square
London
W1G 0PW
Bankers
HSBC Bank Plc
8 Canada Square
London
E14 5HQ
Barclays Bank plc
9 Portman Square
London
W1A 3AL
TORCH PARTNERS CORPORATE FINANCE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 18
TORCH PARTNERS CORPORATE FINANCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Fair review of the business
The company continues to be regulated by the Financial Conduct Authority ("FCA"). The company's key performance indicators are revenue and pre-tax profit. Revenue for the year amounted to £5,209,835 (2022: £629,748) and pre-tax profit of £3,594,723 (2022: £168,904). During the year, the company received a success fee from a legacy corporate finance advisory mandate of £4,672,862.
The performance for the year is consistent with the strategy and expectations of the directors, who are satisfied with the performance and financial position at the year end.
Principal risks and uncertainties
The company's principal financial instruments comprise bank balances, and group payables and receivables. The main purpose of these instruments is to fund the company's operations.
The company's approach to managing risks applicable to the financial instruments concerned is set out below.
Interest rate risk
The company's financial assets are not materially exposed to interest rate risk.
Market risk
The company does not take positions which expose it to market risk.
Credit risk
As a service company the directors consider that the key financial risk exposures faced by the company relate to intragroup credit risk and the need to maintain sufficient liquidity to satisfy regulatory capital requirements and working capital needs. The group's working capital is managed so as to ensure that the company is adequately funded at all times.
Liquidity risk
In respect of bank balances, the company makes use of money market facilities where funds are available and trade payables liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. The directors regularly monitor cash flow and management accounts to ensure that minimum liquidity requirements, as dictated by the FCA, are not breached and that the company maintains adequate working capital.
Foreign currency risk
The business operations of the company do expose it to foreign currency risk from time to time, notably by holding cash balances in US Dollars and Euros. The directors review the exposure on a regular basis and aim to maintain a naturally hedged position between the currencies.
Operational risk
Operational risk, inherent in all businesses, is the potential for financial and reputation loss arising from failures in internal controls, operational processes or systems that support them. It includes errors, omissions, disasters and deliberate acts such as fraud. The regulated environment in which the company operates imposes extensive reporting requirements and continuing self assessment and appraisal. Internal arrangements and processes are in place to continually re-evaluate as the company seeks to improve its operating efficiencies and these are considered to have been effective to date.
MIFIDPRU 8 Remuneration disclosures
In accordance with the rules of the new public disclosure requirements of IFPR as set out in MIFIDPRU 8, the company has published the necessary remuneration disclosures on its website, which can be found at www.torchpartners.com.
TORCH PARTNERS CORPORATE FINANCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Section 172 statement
The directors of the company always endeavour, individually and collectively, to act in the way to promote the success of the company for the benefit of its members as a whole. In doing so, they consider the likely consequence of any decisions in the long-term, having regard to an approach that is fair and equitable to all members of the company.
Underlying their decision making process, the directors consider the impact on the company’s employees and are mindful of how the company’s business operations impact the community and environment. The directors’ overarching responsibility is to maintain a reputation for high standards of business conduct and seek to build strong business relationships with suppliers, customers and other key counterparties.
The shareholders of the company and its wider group are its key stakeholders. As is common with businesses of the size and scale of the company, key shareholders are represented on the Board of the company and group, ensuring that shareholders are integral to all strategic decisions that are made.
R Robson
Director
24 April 2024
TORCH PARTNERS CORPORATE FINANCE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company is to provide management and advisory services to fellow group undertakings, including oversight of the activities undertaken by an appointed representative conducting business under the company's regulatory permissions. The company's activities are regulated by the Financial Conduct Authority.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
R Robson
R O'Donnell
(Resigned 4 April 2024)
Auditor
TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
TORCH PARTNERS CORPORATE FINANCE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management and its objectives with regard to financial instruments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
R Robson
Director
24 April 2024
TORCH PARTNERS CORPORATE FINANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TORCH PARTNERS CORPORATE FINANCE LIMITED
- 5 -
Opinion
We have audited the financial statements of Torch Partners Corporate Finance Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 December 2023 and of its profit for the 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.
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 director 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 director is 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
TORCH PARTNERS CORPORATE FINANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TORCH PARTNERS CORPORATE FINANCE LIMITED
- 6 -
Matters on which we are required to report by exception
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 director's 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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 irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (United Kingdom Generally Accepted Accounting Practice; including FRS 102 ‘The Financial Reporting Standard applicable to the UK and Republic of Ireland’ and Companies Act 2006). In addition, the company is required to comply with relevant Financial Conduct Authority’s ("FCA") rules and regulations relating to its operations.
We understood how the company is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation including, FCA procedures manuals for the group and correspondence with regulatory bodies.
TORCH PARTNERS CORPORATE FINANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TORCH PARTNERS CORPORATE FINANCE LIMITED
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested revenue recognition by reviewing the company's underlying agreements with its clients and referring to the revenue recognition criteria to ensure that all revenue earned in the period was recognised. We further tested completeness of income through analytical review procedures and cut off tests.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Mark Bailey FCA CTA
Senior Statutory Auditor
For and on behalf of TC Group
24 April 2024
Accountants
Statutory Auditor
Devonshire House
1 Devonshire Street
London
W1W 5DR
TORCH PARTNERS CORPORATE FINANCE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Revenue
2
5,209,835
629,748
Administrative expenses
(1,650,156)
(460,844)
Operating profit
3
3,559,679
168,904
Investment income
6
35,044
Profit before taxation
3,594,723
168,904
Tax on profit
7
(837,198)
(31,233)
Profit for the financial year
2,757,525
137,671
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
TORCH PARTNERS CORPORATE FINANCE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Current assets
Trade and other receivables
9
7,283,751
2,633,400
Cash and cash equivalents
2,366,887
2,931,960
9,650,638
5,565,360
Current liabilities
10
(1,979,800)
(652,047)
Net current assets
7,670,838
4,913,313
Equity
Called up share capital
12
164,200
164,200
Retained earnings
7,506,638
4,749,113
Total equity
7,670,838
4,913,313
The financial statements were approved by the board of directors and authorised for issue on 24 April 2024 and are signed on its behalf by:
R Robson
Director
Company registration number 04039591 (England and Wales)
TORCH PARTNERS CORPORATE FINANCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
164,200
4,611,442
4,775,642
Year ended 31 December 2022:
Profit and total comprehensive income
-
137,671
137,671
Balance at 31 December 2022
164,200
4,749,113
4,913,313
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,757,525
2,757,525
Balance at 31 December 2023
164,200
7,506,638
7,670,838
TORCH PARTNERS CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Torch Partners Corporate Finance Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 1, 7th Floor, 50 Broadway, London, SW1H 0BL. The principal place of business is 33 Cavendish Square, London, W1G 0PW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in pound sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound sterling.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures, and;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Torch Partners Limited. These consolidated financial statements are available from its registered office, Suite 1, 7th Floor, 50 Broadway, London, SW1H 0BL.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Fee income represents revenue earned from the company's principal activities. Revenue is recognised as earned, when and to the extent that, the company obtains the right to consideration in exchange for its performance under contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to group undertakings, including expenses but excluding VAT.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in receivables as accrued income.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
TORCH PARTNERS CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives from the date they are brought into use on the following bases:
Office furniture and fittings
20% - 50% straight line
Computer equipment
50% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of comprehensive income.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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 company after deducting all of its liabilities.
TORCH PARTNERS CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables and amounts due to fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Foreign exchange
Transactions in currencies other than pound sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the statement of comprehensive income.
1.12
Administrative costs that are recharged to fellow group undertakings are classified and disclosed according to their economic substance.
TORCH PARTNERS CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2
Revenue
An analysis of the company's revenue is as follows:
2023
2022
£
£
Revenue analysed by class of business
Corporate finance advisory fees
4,672,862
-
Group recharge income
536,973
629,748
5,209,835
629,748
2023
2022
£
£
Revenue analysed by geographical market
UK
536,973
629,748
Rest of the World
4,672,862
-
5,209,835
629,748
3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
85,535
(176,367)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
12,000
4
Employees
The average monthly number of persons employed by the company during the year was:
2023
2022
Number
Number
Operations and administration
2
2
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
675,000
435,867
Social security costs
93,002
61,888
Pension costs
20,000
19,829
788,002
517,584
TORCH PARTNERS CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
5
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
485,000
249,250
Company pension contributions to defined contribution schemes
10,000
10,000
495,000
259,250
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
485,000
249,250
Company pension contributions to defined contribution schemes
10,000
10,000
6
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
35,044
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
844,625
31,233
Adjustments in respect of prior periods
(7,427)
Total current tax
837,198
31,233
TORCH PARTNERS CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 16 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
3,594,723
168,904
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
844,760
32,092
Tax effect of expenses that are not deductible in determining taxable profit
34
51
Permanent capital allowances in excess of depreciation
(923)
(910)
Under/(over) provided in prior years
(7,427)
Other tax adjustments
754
Taxation charge for the year
837,198
31,233
The company is a member of a corporation tax group with other group companies. Losses are available to group relieve a portion of the company's taxable profits in the year. Any group relief received by the company will be charged accordingly. The tax charge for the year reflects this position.
8
Property, plant and equipment
Office furniture and fittings
Computer equipment
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
193,821
131,531
325,352
Depreciation and impairment
At 1 January 2023 and 31 December 2023
193,821
131,531
325,352
Carrying amount
At 31 December 2023
At 31 December 2022
9
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
2,542,680
2,492,960
Other receivables
5,305
1,154
Prepayments and accrued income
4,735,766
139,286
7,283,751
2,633,400
TORCH PARTNERS CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
10
Current liabilities
2023
2022
£
£
Trade payables
87
Amounts owed to group undertakings
44,441
461,884
Corporation tax
844,222
31,233
Other payables
1,667
1,523
Accruals and deferred income
1,089,470
157,320
1,979,800
652,047
11
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,000
19,829
The company operates a defined contribution pension scheme for all qualifying employees. The pension schemes assets are held separately from those of the company in an independently administered fund.
12
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
164,200
164,200
164,200
164,200
13
Events after the reporting date
In April 2024 the company declared and paid a dividend of £4,800,000.
14
Ultimate controlling party
The company's immediate parent company is Torch Group Limited. The company's ultimate parent company is Torch Partners Limited, both of which are incorporated in England and Wales. A copy of the consolidated financial statements of Torch Partners Limited can be obtained from Suite 1, 7th Floor 11-12 St. James's Square, London, SW1Y 4LB.
As at 31 December 2023, the ultimate controlling party was R. Robson.
TORCH PARTNERS CORPORATE FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
15
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Fees receivable
Fees payable
2023
2022
2023
2022
£
£
£
£
Fellow group undertakings
536,973
629,748
682,800
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Entities with control over the company
44,441
461,884
Fellow group undertakings
682,800
-
Amounts due to fellow group undertakings are disclosed within accruals and deferred income in note 10.
2023
2022
Amounts due from related parties
£
£
Entities with control over the company
2,479,700
2,461,288
Fellow group undertakings
108,500
162,542
Included within amounts due from fellow group undertakings is £45,520 (2022: £130,870) that is disclosed within prepayments and accrued income in note 9.
Other information
All amounts outstanding are interest free and repayable on demand.
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