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Registration number: 12421418

Ormonde Advisory Ltd

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Ormonde Advisory Ltd

Contents

Company Information

1

Strategic Report

2 to 5

Directors' Report

6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 12

Profit and Loss Account

13

Statement of Comprehensive Income

14

Balance Sheet

15

Statement of Changes in Equity

16

Statement of Cash Flows

17

Notes to the Financial Statements

18 to 25

 

Ormonde Advisory Ltd

Company Information

Directors

Mr Christopher Winn

Mr Stephen Smith

Ms Joanna Kirby

Mr Fraser Marcus

Registered office

2nd Floor, Berkeley Square House
Berkeley Square
London
W1J 6BD

Auditors

Grant Thornton
13-18 City Quay
Dublin
D02 ED70

 

Ormonde Advisory Ltd

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of Ormonde Advisory Ltd ("the Company") is that of an independent advisory and fund management business regulated by the FCA.

Fair review of the business

The Company is now directly owned by its shareholders, having ceased to be part of a corporate group on 29 September 2023. It previously sat directly beneath Ormonde Europe Limited and indirectly beneath an ultimate parent company, Ormonde Partners Limited. The Company acts as manager of the Ormonde Multi-Asset Fund (“Fund”) which is domiciled in Ireland and regulated by the Central Bank of Ireland, and also provides investment advice to family offices and wealth managers.

The results of the entity for the period, as set out on pages 14 to 15, show a loss on ordinary activities before interest and tax of £595,110 (2022 - £945,108). Closing net assets are £556,148 (2022 - £610,312). These results reflect reduced management fee and a small performance fee income arising from the Fund over 2023 as the Fund (which is in termination) liquidated its investments and returned assets to investors, and limited advisory fee income from investment advisory clients. The Company’s turnover of £324,514 (2022 - £434,175) arose primarily from fees charged for its investment advisory services, with a minor proportion arising from fund management fees and performance fees.

The Company’s cost of sales relates mainly to staff costs. The Company made several support roles redundant during the period in order to manage staff costs. The other material cost is administrative costs relating to professional advice and support.

The shareholders' funds of the entity total £2,044,778 (2022 - £1,503,028). During the period, the Company issued £541,750 (2022 - £1,098,028) of additional ordinary share capital to its former parent company, Ormonde Europe Limited, in order to capitalise the Company for its operations and to meet the Company’s regulatory capital requirements.

The Company provides services to clients in the UK, several with connections in Europe and provides sub-advisory services to its affiliate, Ormonde USA LLC. The Company’s investment advisory services are provided to family offices or wealth managers advising wealthy clients, and prevailing economic conditions generally have little impact on the level of demand from these clients for advice regarding the management of their capital and investments. However, macro-economic headwinds across the markets in which the Company operates, together with global geopolitical uncertainties and volatile public markets, have hampered the Company’s efforts to attract new advisory clients.

The Company’s strategy is to deliver bespoke investment advice, primarily in relation to private market assets, to family offices, to develop fund-based solutions which provide clients of wealth managers access to private market investments, and to make single-strategy investment opportunities available to its network of family office and wealth manager clients.

The Company is well capitalised and has no immediate solvency concerns. However, it remains loss-making and the directors are considering the sustainability of its operations longer-term. The Company intends to reduce its operation and it is likely that the directors will decide to wind the business up during the course of 2024. The directors intend to commence a winding up in the third quarter of 2024 if appropriate agreements can be reached with counterparties.

 

Ormonde Advisory Ltd

Strategic Report for the Year Ended 31 December 2023

The Company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

324,514

434,175

Cost of sales

£

915,123

1,379,283

Loss

£

(595,110)

(939,153)

Net assets

£

556,148

610,312

The material changes from last year’s KPIs are discussed in the results for 2023 above.

Principal risks and uncertainties

The principal risks to the Company are financial and regulatory.

The Company operates in the regulated financial services sector and faces the risk of breaching regulation, legal or ethical standards and consequential regulatory sanctions and reputational damage. These risks are addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management, risk management and internal audit. Compliance with regulation, legal and ethical standards is a high priority for the compliance team.

The Company also faces financial risks, primarily as a result of diminishing revenues arising from exiting its core historic business line of managing the Fund, and the limited extent to which it has developed replacement business lines. The board is responsible for satisfying itself that a proper internal control framework exists to manage financial risks and that controls operate effectively. Given these risks and responsibilities, the board is reviewing the future viability of the Company closely and intends to commence a winding up of the business in the third quarter of 2024 if appropriate arrangements with all counterparties can be concluded.

 

Ormonde Advisory Ltd

Strategic Report for the Year Ended 31 December 2023

Section 172(1) statement

Section 172 of the Companies Act 2006 requires directors to take into consideration the interests of stakeholders in their decision making when fulfilling their duty to promote the success of each company for the benefit of its members.

The directors of the Company (the Board) continues to have regard to the interests of Ormonde Advisory Limited's (the “Company”) employees and other stakeholders, including the impact of its activities on the community and the environment and the Company’s reputation, when making decisions. Acting in good faith and fairly between shareholders, the Board considers what is most likely to promote the success of the Company for its shareholders in the long term. This statement describes how the Board has considered and engaged with stakeholders and how the Board has discharged this duty.

The Board regularly reviews our principal stakeholders and how the Company engages with them, both through information reported to the Board and direct engagement. The principal stakeholders the Board considers are relevant in complying with their s.172 obligations are employees, shareholders, customers, suppliers and community.

Engagement
The Board develops strategies needed for the Company to create value for stakeholders. Given the relatively small size of the Company, the Board members work directly with our team, customers and suppliers to implement and monitor progress. Certain matters or issues may have more (or less) relevance to some stakeholders than others. The Board seeks to consider the needs and priorities of each stakeholder group when discussing issues and making decisions.

Long term decision making
The Company prepares an annual budget approved by the Board and a three-year forecast. Performance against budget is monitored monthly. Decision-making prioritises client interests over profiteering. All but one of the directors is a shareholder in the Company, further ensuring alignment of long-term interests.

Employees
The Company continues to work to maintain and improve the frequency and rigour of its engagement with its team. The Company held quarterly team offsite conferences when it had a larger team but, with the team size reducing over 2023, this is no longer considered necessary. The Company does maintain weekly all-team meetings to provide regular updates on strategic and operational matters. It continues its established structure of bi-annual one-on-one engagements with each team member to discuss career progression, firm developments and obtain feedback, with results and feedback reviewed and considered by the Board. The Company is committed to being an equal opportunities employer and has a full suite of policies in place to support this and avoid discrimination.

 

Ormonde Advisory Ltd

Strategic Report for the Year Ended 31 December 2023

Shareholders
The Company is majority-owned by the CEO, with remaining shares held by two other directors and two independent investors, providing high levels of shareholder involvement and engagement. The director-shareholders interact weekly and often daily, and the Company aims to engage regularly with its two external investor shareholders and has provided broadly quarterly updates to independent shareholders over 2023.

Clients
The Board continues to develop and evolve the key commercial strategies which the Company adopts by launching and promoting products and services which have wide and enduring appeal to customers, to secure enduring and diversified revenue streams for the Company in the long-term interests of shareholders. During the year, the Board engaged closely with shareholders and employees in developing several single-strategy investment opportunities and a venture capital fund proposal suitable for family offices and wealth managers.

The Company is regulated in the United Kingdom and coordinates with its affiliate, Ormonde USA LLC which is regulated in the United States of America, to operate a robust compliance management programme to ensure its business is conducted with integrity, protecting its reputation and fulfilling the duties it owes to its customers.

Suppliers
The Company works closely with its suppliers to ensure its products remain relevant for its markets. The Company has collaborated with its suppliers regarding the possible creation and launch of several proposed fund structures including one focused on European venture capital investments.

Community and Engagement
The Company is a signatory to the UN-supported Principles of Responsible Investment as an investment adviser and has integrated ESG as a factor in its investment due diligence process. The Company is also a member of the BVCA.

Approved and authorised by the Board on 24 April 2024 and signed on its behalf by:
 

.........................................
Mr Christopher Winn
Director

 

Ormonde Advisory Ltd

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the Company

The directors who held office during the year were as follows:

Mr Christopher Winn

Mr Stephen Smith

Ms Joanna Kirby

Mr Fraser Marcus (appointed 14 February 2023)

Future developments

Events within the UK economy should not have any impact on the entity due to the nature of the entity and its underlying activities.

There are no plans to alter the main strategy of the Company but, absent the derivation of material new client revenue in the first half of 2024, the directors expect to commence a winding up of the Company’s activities later in 2024.

Important non adjusting events after the financial period

The business prospects of the Company have deteriorated following the end of the 2023 accounting period so that the directors intend to commence a winding up of the Company in the third quarter of 2024 if apporpriate arrangements with counterparties can be reached.

Directors' liabilities

The Directors have the benefit of the indemnity provisions contained in the Company’s Articles of Association (‘Articles’), and the Company has maintained throughout the year Directors’ and officers’ liability insurance for the benefit of the Company, the Directors and its officers. The Company has entered into qualifying third party indemnity arrangements for the benefit of all its Directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force throughout the year and remain in force.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The Company appointed Grant Thornton as its auditors on 2 April 2024.

Approved and authorised by the Board on 24 April 2024 and signed on its behalf by:
 

.........................................
Mr Christopher Winn
Director

 

Ormonde Advisory Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Ormonde Advisory Ltd

Independent Auditor's Report to the Members of Ormonde Advisory Ltd

Opinion

We have audited the financial statements of Ormonde Advisory Limited (“Company”), which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Statement of Cash Flows for the year ended 31 December 2023, and the related notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in the preparation of the financial statements is UK law and FRS 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 loss 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.

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 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 forming our opinion on the financial statements, which is not modified, we have considered the presentation of the financial statements on a break-up basis, the adjustment arising from this presentation, and the adequacy of the disclosures made in the Strategic Report and Note 2 to the Financial Statements. The non-going concern basis has been adopted as a result of the future plans of the Company. The wind down of the Company is expected to be completed by the third quarter of 2024. It is therefore appropriate to prepare these financial statements on a non-going concern basis of accounting. Adjustments have been made in these financial statements to reduce assets to their realisable values and to provide for liabilities arising from the decision.

Other matter
The financial statements of Ormonde Advisory Limited for the year ended 31 December 2022, were audited by Moore Kingston Smith LLP, who expressed an unmodified opinion on those statements on 26 April 2023.
 

Other information

Other information comprises information included in the annual report, other than the financial statements and our auditor’s report thereon, including the Directors’ Report, the Strategic Report and the Statement of Directors’ Responsibilities. 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.

 

Ormonde Advisory Ltd

Independent Auditor's Report to the Members of Ormonde Advisory Ltd

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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 7, 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.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

 

Ormonde Advisory Ltd

Independent Auditor's Report to the Members of Ormonde Advisory Ltd

Auditor Responsibilities for the audit of the financial statements

The objectives of an auditor 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 their 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.

A further description of an auditor’s 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.

 

 

Ormonde Advisory Ltd

Independent Auditor's Report to the Members of Ormonde Advisory Ltd

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Data Privacy law, Employment Law and any other policies or other regulatory, prudential and legislative requirements which are introduced from time to time and are applicable to the Company, including UK financial reporting standards as issued by the Financial Reporting Council, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK tax legislation. The Audit engagement partner considered the experience and expertise of the engagement team to ensure that the team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.

In response to these principal risks, our audit procedures included but were not limited to:
• enquiries of management and the directors on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
• inspection of the Company’s regulatory and legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;
• gaining an understanding of the entity’s current activities, the scope of authorisation and the effectiveness of its control environment to mitigate risks related to fraud;
• discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
• identifying and testing journal entries to address the risk of inappropriate journals and management override of controls
• designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing
• challenging assumptions and judgements made by management in their significant accounting estimates including those related to the recoverability of debtors
• review of the financial statement disclosures to underlying supporting documentation and inquiries of management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Ormonde Advisory Ltd

Independent Auditor's Report to the Members of Ormonde Advisory Ltd

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.

......................................
Sarah Bradley (Senior Statutory Auditor)
For and on behalf of Grant Thornton, Statutory Auditor

13-18 City Quay
Dublin
D02 ED70

24 April 2024

 

Ormonde Advisory Ltd

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

324,514

434,175

Gross profit

 

324,514

434,175

Administrative expenses

 

(919,624)

(1,379,283)

Operating loss

5

(595,110)

(945,108)

Other interest receivable and similar income

6

-

623

Interest payable and similar expenses

7

(804)

5,332

   

(804)

5,955

Loss before tax

 

(595,914)

(939,153)

Loss for the financial year

 

(595,914)

(939,153)

The above results were derived from continuing operations.

The Company has no recognised gains or losses for the year other than the results above.

 

Ormonde Advisory Ltd

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Loss for the year

(595,914)

(939,153)

Total comprehensive income for the year

(595,914)

(939,153)

 

Ormonde Advisory Ltd

(Registration number: 12421418)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

3,771

12,912

Current assets

 

Debtors

12

284,241

243,495

Cash at bank and in hand

 

299,196

441,761

 

583,437

685,256

Creditors: Amounts falling due within one year

13

(31,060)

(87,856)

Net current assets

 

552,377

597,400

Net assets

 

556,148

610,312

Capital and reserves

 

Called up share capital

15

2,044,778

1,503,028

Profit and loss account

(1,488,630)

(892,716)

Shareholders' funds

 

556,148

610,312

Approved and authorised by the Board on 24 April 2024 and signed on its behalf by:
 

.........................................
Mr Christopher Winn
Director

 

Ormonde Advisory Ltd

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

1,503,028

(892,716)

610,312

Loss for the year

-

(595,914)

(595,914)

New share capital subscribed

541,750

-

541,750

At 31 December 2023

2,044,778

(1,488,630)

556,148

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

405,000

46,437

451,437

Loss for the year

-

(939,153)

(939,153)

New share capital subscribed

1,098,028

-

1,098,028

At 31 December 2022

1,503,028

(892,716)

610,312





Retained Earnings
The retained earnings represents the cumulative profit and loss net of distributions to shareholders.

 

Ormonde Advisory Ltd

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Loss for the year

 

(595,914)

(939,153)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

9,339

11,976

(Profit)/loss on disposal of tangible assets

4

(450)

1,428

Finance income

6

-

(623)

 

(587,025)

(926,372)

Working capital adjustments

 

(Increase)/decrease in debtors

12

(40,746)

115,471

Decrease in creditors

13

(56,796)

(240,382)

Cash generated from operations

 

(684,567)

(1,051,283)

Income taxes received

-

128,758

Net cash flow from operating activities

 

(684,567)

(922,525)

Cash flows from investing activities

 

Interest received

6

-

623

Acquisitions of tangible assets

(6,381)

(4,063)

Proceeds from sale of tangible assets

 

6,633

5,064

Net cash flows from investing activities

 

252

1,624

Cash flows from financing activities

 

Proceeds from issue of ordinary shares, net of issue costs

 

541,750

1,098,028

Net (decrease)/increase in cash and cash equivalents

 

(142,565)

177,127

Cash and cash equivalents at 1 January

 

441,761

264,634

Cash and cash equivalents at 31 December

 

299,196

441,761

The requirement under FRS102 to present a reconcilliation of net debt is not applicable to the Company, as it holds no debt.

 

Ormonde Advisory Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The Company is a private company limited by share capital, registered and incorporated in England and Wales.

The address of its registered office is:
2nd Floor, Berkeley Square House
Berkeley Square
London
W1J 6BD

These financial statements were authorised for issue by the Board on 24 April 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the 'Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a basis other than going concern, which is described as the break-up basis. The preparation of financial statements on a break-up basis is a departure from the requirements of FRS102 and company law to prepare financial statements on a going concern basis. This departure is made in order to comply with the overriding requirement in the Companies Act 2006 for the financial statements to give a true and fair view. The break-up basis requires the carrying value of the assets to be at the amounts they are expected to realise and liabilities include any amounts which have crystallised as a result of the decision to wind up.

Judgements and estimates

The preparation of the financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. Although the nature of estimation means that actual outcomes could differ from those estimates, both estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstance. Judgements have been made in relation to the recoverability of debtors and the application of the break up basis.

Revenue recognition

Turnover comprises the fair value of investment advisory services provided during the period to clients. Turnover is recognised as contract activity progresses and the right to consideration is earned. Fair value reflects the amount expected to be recoverable from clients and is based on services provided and expenses incurred excluding VAT.

 

Ormonde Advisory Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Disposal of Company assets are recognised at sale value less cost and any subsequent accumulated depreciation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

33% straight line

Furniture and fittings

33% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors and other debtors are recognised initially at the transaction price. 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.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors and other creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Ormonde Advisory Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The whole of the turnover is attributable to providing investment services to investment funds and investment advisory services. An analysis of turnover by geographical area has not been provided as in the opinion of the Directors such disclosures would not be beneficial to the interests of the Company.

2023
 £

2022
 £

Rendering of services

324,514

434,175

4

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
 £

2022
 £

Gain/(loss) on disposal of property, plant and equipment

450

(1,428)

 

Ormonde Advisory Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

5

Operating loss

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

9,339

11,976

Operating lease expense - property

111,097

71,568

(Profit)/loss on disposal of property, plant and equipment

(450)

1,428

6

Other interest receivable and similar income

2023
 £

2022
 £

Other finance income

-

623

7

Interest payable and similar expenses

2023
 £

2022
 £

Foreign exchange (gains)/losses

804

(5,332)

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

454,722

740,528

Social security costs

55,080

94,107

Other short-term employee benefits

21,558

22,966

Pension costs, defined contribution scheme

50,729

29,743

582,089

887,344

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

6

9

6

9

 

Ormonde Advisory Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

260,414

361,000

Contributions paid to money purchase schemes

41,646

18,347

302,060

379,347

In respect of the highest paid director:

2023
 £

2022
 £

Remuneration

130,500

135,000

Company pension contributions

6,525

6,750

10

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

17,000

24,000


 

11

Tangible assets

Furniture, fittings and equipment
 £

Cost or valuation

At 1 January 2023

31,181

Additions

6,381

Disposals

(6,183)

At 31 December 2023

31,379

Depreciation

At 1 January 2023

18,269

Charge for the year

9,339

At 31 December 2023

27,608

Carrying amount

At 31 December 2023

3,771

At 31 December 2022

12,912

 

Ormonde Advisory Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Debtors

Current

Note

2023
£

2022
£

Amounts owed by related parties

17

145,861

121,036

Other debtors

 

28,346

44,051

Prepayments

 

7,477

45,908

Accrued income

 

102,557

32,500

   

284,241

243,495

13

Creditors

2023
 £

2022
 £

Due within one year

Trade Creditors

6,753

14,850

Social security and other taxes

-

21,983

Outstanding defined contribution pension costs

4,407

6,219

Accrued expenses

19,900

44,804

31,060

87,856

14

Pension and other schemes

Defined contribution pension scheme

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £50,729 (2022 - £29,743).

Contributions totalling £4,407 (2022 - £6,219) were payable to the scheme at the end of the year and are included in creditors.

 

Ormonde Advisory Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

15

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

2,044,778

2,044,778

1,503,028

1,503,028

       

New shares allotted

During the year 541,750 (2022 - 1,098,028) Ordinary shares having an aggregate nominal value of £541,750 (2022 - £1,098,028) were allotted for an aggregate consideration of £541,750 (2022 - £1,098,028). The shares were issued to fulfil the Group's capital adequacy requirements..

16

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

-

108,980

The amount of non-cancellable operating lease payments recognised as an expense during the year was £111,097 (2022 - £71,568).

17

Related party transactions

Between 1 January 2023 and 28 October 2023, the Company formed part of a wholly owned group and has taken advantage of the exemption allowed under section 33.1A of FRS 102 not to disclose transactions with other group companies. Since that date, it has been a stand-alone company.

Summary of transactions with associates

At the balance sheet date, Ormonde USA LLC, a company under common ownership, owed the Company £145,861 (2022 - £121,036). In February 2024, the loan was repaid in full.
 

Summary of transactions with other related parties

During the year, the Ormonde Multi Asset Fund, a fund which the Company act as fund manager for, paid the Company management fees and performance fees of £140,874 in aggregate
 

18

Parent and ultimate parent undertaking

These financial statements are available upon request from the Companies House website.

 The ultimate controlling party is Christopher Winn by virtue of his majority shareholding.

 

Ormonde Advisory Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

19

Non adjusting events after the financial period

The business prospects of the Company have deteriorated following the end of the 2023 accounting period so that the directors intend to commence a winding up of the Company in the third quarter of 2024 if apporpriate arrangements with counterparties can be reached.