Company registration number 09228395 (England and Wales)
TIML LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
TIML LTD
COMPANY INFORMATION
Directors
Mr R Basra
Mr K Charalambous
Mr W Jensen
Company number
09228395
Registered office
14 Hanover Square
London
W1S 1HN
Auditor
Just Audit Limited
Strelley Hall
Strelley
Nottingham
NG8 6PE
TIML LTD
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Profit and loss account
12
Statement of changes in equity
13
Balance sheet
14
Notes to the financial statements
15 - 22
TIML LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The Directors present the strategic report for the year ended 30 June 2024.

 

TIML Limited trades as Tacit Investment Management and throughout this report references to Tacit are interchangeable.

Fair review of the business

TIML Limited continues to be regulated by the Financial Conduct Authority (FCA) as a Small and Non-Interconnected (SNI) firm.

 

TIML’s principal activity is the investment management of (mostly) discretionary portfolios for private individuals and for some corporate entities in the form of pension funds. Known as Tacit Investment Management (Tacit) in the industry, the Firm has a clear and consistent approach to investment which focuses first on the preservation of investors’ capital and, for those investors willing and able to take a higher level of risk, to grow their wealth in absolute terms. Tacit offers four core strategies in which investment risk is managed using the Growth/Stabiliser investment philosophy which Tacit has espoused consistently since its inception. These four strategies now have nearly fourteen complete years of public performance history.

 

The company continued to acquire new clients through the year and has been successful in winning new business from private investors in a higher net worth bracket, confirming the appeal of high quality personalised professional service, and the depth of market experience of the senior managers in Tacit.

 

The year began much as the previous one had finished, with sticky inflation reads underpinning higher policy rates and acting as a drag on investment returns. The converse of this was that for the first time in over a decade higher bond yields offered attractive returns to investors and allowed a rebalancing of risk to incorporate sovereign and corporate debt for their inherent real returns alongside higher risk growth assets. Towards the end of the calendar year, however, equity markets began to stage a breakout from their range-bound patterns and the second half of the financial year brought a welcome transition to higher levels in all the Tacit strategies. As a result of the market growth in assets under management, the final quarter fee run was at an all-time high.

 

Total revenue increased by 3.5% from £2.07m to £2.15m. However, as noted last year, operating costs have increased again for several reasons, including a change in the remuneration arrangement for some of the Directors who are now on the payroll, staff promotions and new hires (the total payroll costs increased by 93% over the previous year), and a general increase in most operating costs including third-party service provider costs. As a consequence, post-tax profit was £590k compared with £750k in the previous year. The Directors acknowledge that costs must be contained and reduced wherever possible, and that more energy must be devoted to winning new clients. The balance sheet on page 14 of the financial statements shows that net assets have increased by £135k to £633k, which indicates the underlying strength of the business.

 

Business plan

 

The Directors revised the Group business plan to focus on acquiring direct clients within the affluent and high net worth profile who require investment management supported by financial planning expertise, particularly in relation to pensions and inter-generational wealth planning as part of their overall wealth management. The implementation of the business objective requires TIML Limited to have the permissions to give financial advice and qualified advisers to work alongside the Investment Directors. An application to the FCA for additional permissions was approved after the close of the year and is a significant post-balance sheet development.

 

Tacit successfully recruited a qualified financial adviser in the year, in anticipation that the application to extend the permitted business of the Firm would be granted. Much work has been done to launch Tacit’s additional capabilities to existing and new clients. By providing the relevant financial planning services alongside investment management under a single agreement, Tacit will offer exceptional value to its clients and will also retain professional fees which hitherto have been earned by third-party financial advisers.

 

 

 

TIML LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

Principal risks & uncertainties

Operational Risk

Operational risks arise from the people, processes, and systems in use within TIML Limited, or from external events. In the course of the year, the Firm implemented intelliflo office as its client database and operating system. The analytical capability of intelliflo will greatly enhance the Firm’s range and depth of management information (MI) and will enhance the client reporting experience and interactive communication with Tacit. The use of intelliflo will eliminate use of data extracts to provide monitoring and control analysis and will constitute a single data warehouse and analytical hub.

 

Regulatory environment

This is the first full year of operation under the FCA Consumer Duty regulations. Consumer Duty is now the foundation of the FCA’s regulatory programme for firms providing financial products and services to retail customers. In the course of the year, Tacit has undertaken work to define its target market, evaluate its value proposition, review its communications, and revise its policies to reflect the impact of the four Consumer Duty Principles and the Cross Cutting Rules on the Firm’s business. A range of MI reports have been developed to enable the Senior Management to monitor compliance with the Consumer Duty obligations. The Directors are confident that Consumer Duty is an opportunity for Tacit and they believe the Firm is in a strong position to compete effectively in the new regulated environment. A programme of staff training will be critical to embedding Consumer Duty principles into the operations and client culture of Tacit.

 

The FCA’s Investment Firms’ Prudential Regime (IFPR) is now fully embedded in TIML’s regulatory monitoring and reporting. The Firm is comfortably within its regulatory capital and Own Funds liquidity requirements, and it remains the objective of the Directors to build the balance sheet to improve resilience and provide flexibility for future growth.

 

Technological environment

TIML Limited relies heavily on digital technology and believes in making the best use of technology to remain

competitive and to provide an excellent service to clients. The Directors are very conscious of the risks of

cybercrime and data breaches. Tacit employs a professional IT support firm to advise on security measures and to maintain system protection software on all devices. An encryption process is used for the transmission of all sensitive client information and clients can view details of their investments through a secure portal supported by AJ Bell.

 

TIML Limited has incorporated the UK Government’s 10 Steps to Cyber Security into our day-to-day management of TIML Limited.

 

Economic environment

The economic backdrop through much of the year was dominated by elevated interest rates and anxiety over economic growth rates. Inflation rates fell round much of the developed economies as energy costs subsided and new supply lines opened up in manufacturing industries. Growth remained subdued, but any fear of a global recession was not realised. Although inflation rates have fallen, this is largely the effect of the 12-month comparator and does not negate the elevated prices of many goods and services through the inflationary cycle, which are in themselves an enduring inhibitor to consumer spending.

Markets watch for signs of the Federal Reserve (Fed) commencing a programme of easing policy rates, but the Fed appears to fear a resurgence of inflation over the risk of recession. Against this backdrop, the indicators from the US point to a robust economy, unlike in China where industrial output has slowed and cracks in the inflated residential property market are a continuing cause of concern.

TIML LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

Political Environment

This year is marked by elections in the UK, several European nations and in the US later in 2024. Uncertainty is rarely a favourable condition for investing, and this is most pronounced in the US presidential election where an undertow of potential civil unrest could erupt whichever candidate is elected. Of immediate concern to investors is the threat of tax rises in countries such as the US and the UK where high levels of public borrowing hang over their economies. In the UK, the election of a Labour government immediately after the balance sheet date brings uncertainty over the future taxation of wealth and asset transfers. This is an area of financial advice which Tacit will be able to offer clients under its new permitted business activities.

 

Capital adequacy

 

As an SNI regulated firm, the company continues to be capitalised in excess of regulator-imposed minimum capital adequacy and liquidity requirements. The Firm's capital adequacy requirement is calculated based on three months contracted fixed costs. As noted above, the Firm is well capitalised in excess of its IFPR capital and liquidity requirements.

 

 

Competitive environment, social and market forces

 

The company continues to operate in a competitive marketplace with many larger competitors focusing on asset growth rather than investment management as their primary objective. The Directors perceive that the Consumer Duty regulations are already causing smaller firms to reassess their ability to compete in this new regulatory environment and that this presents opportunities for Tacit to acquire established books of business. The performance of the Tacit investment strategies affords it this opportunity and therefore the Directors see the competitive environment as a significant positive factor for its future growth.

 

Development & performance

 

The Directors intend to continue to assess relevant opportunities to develop or expand the Firm’s activities, provided these are consistent with the company’s business strategy and direction.

 

Key performance indicators

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

 

Unit     2024 2023

Turnover        £     2,146,995    2,073,768

Operating profit        £     793,877     953,486

TIML LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Other performance indicators

Investment outcomes and client retention

The four Tacit strategies performed well in absolute and relative terms when compared to the Asset Risk

Consultants Private Client Indices. This was achieved by strictly adhering to the Growth/Stabiliser framework which underpins the Tacit Investment Philosophy as well as the ability to pivot towards technology companies following the sharp declines experienced by the Nasdaq during the preceding twelve-month period as interest rates rose sharply. Liquidity was an important factor also as it allowed the team to recycle monies from more defensive holdings towards our longer-term preferred investments. All strategies provided positive returns after all costs, over the 12 months (the performance since inception on 30 September 2010 for each strategy is shown in brackets next to the 1 year return). Conservative +4.81% (+62.62%); Real Return +8.98% (+110.78%); Steady Growth +11.21% (+140.42%); Total Return +13.11% (+211.58%).

 

Operational matters

As with all businesses based on relationship and exchange of ideas, being together is important for the development of a common culture and mutual support. For some of the founding Directors, remote working will remain the pattern, but as the Firm grows, the London office will be the working location for new employees. The lease on the office at 17 Hanover Square expired immediately after the financial year end and the business has moved the short distance to 14 Hanover Square.

TIML LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Other information and explanations

Section 172 Statement and engagement with stakeholders

The company is a discretionary investment management firm which depends on the trust and confidence of its

stakeholders to operate sustainably in the long term. It seeks to put its clients’ best interests first, invests in its

employees, supports the communities in which it operates and strives to generate sustainable profits for

shareholders.

 

The Directors of the company consider that they have acted in accordance with their duties codified in law, in

particular their duty to act in the way in which they consider, in good faith, would be most likely to promote the

success of the company for the benefit of its members as a whole, having regard to the stakeholders and matters set out in section 172(1) of the Companies Act 2006.

 

Clients
The company considers our clients to be one of the most important stakeholder groups of our business model. Tacit places the highest emphasis on personal service to each client and regularly reviews the processes by which we establish the individual needs of each client and respond to them with investment propositions and regular communications which meet their objectives and enable them to understand the basis on which our investment decisions are made.
Suppliers
The company recognises that key suppliers and outsourced service providers can have a material impact on the long-term success of the business and so incorporates the interests of these stakeholders when making strategic long-term decisions. The company believes that having due regard to the interests of these suppliers is a dynamic and ongoing process which requires thoughtful monitoring and assessment, and a willingness to engage with those suppliers to better understand their operating constraints and business development plans.
Employees
The company is committed to being a responsible employer and recognises that for our business to succeed, we need to manage our employees' performance through mentoring and structured training, and develop and encourage talent, ensuring that we operate as efficiently as possible.
High standards of business conduct
Maintaining a high standard of business conduct when dealing with stakeholders such as regulatory bodies is vital for the company. The company is regulated by the FCA and the Directors are very aware of the need to keep up to date with industry regulations and best practice. The company recognises the importance of meeting its reporting obligations to the FCA and takes client confidentiality and data protection very seriously as set out in our privacy notice on our website which is reviewed regularly.
The community and the environment
In their decision making, the Directors need to have regard to the impact of the company's operations on the community and environment. Wherever possible, the company encourages carbon friendly business practices as evidenced by giving all staff the ability to work from home if possible.

On behalf of the board

Mr R Basra
Director
30 September 2024
TIML LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -

The Directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of TIML Limited is to provide investment management services to private clients, pension funds and institutions providing financial advice to retail clients.

 

Directors

The Directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R Swain
(Resigned 20 October 2023)
Mr R Basra
Mr K Charalambous
Mr L Stephens
(Resigned 13 September 2024)
Mr W Jensen
Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £455,140. The Directors do not recommend payment of a final dividend.

 

Dividends declared after the year end and up to the date of approval of these financial statements totalled £93,351

Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk

The business’s principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business's operations.

In respect of bank balances, the liquidity risk is managed by maintaining a sufficient cash reserve at the bank to allow for short term net cash outflows. The firm’s cash is held in accounts that pay a competitive rate of interest.

Trade debtors are managed in respect of credit and cash flow risk through the Terms & Conditions of our engagement with clients and professional advisers, and through the regular monitoring of amounts outstanding for both time and credit limits. Retail client fees are taken directly by the custodian from client accounts operated by the custodian, thus mitigating credit risk associated with this aspect of the business. Trade creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet liabilities when they fall due.

Objectives and policies

At all times the Directors must ensure that they meet the capital adequacy requirements stipulated by the Financial Conduct Authority, which must be reported periodically via the FCA Gateway.

Post reporting date events

There have been no material events affecting TIML Limited between the balance sheet date and the signing of the report.

Auditor

Just Audit Limited has completed the fifth year of appointment and the Directors intend to appoint Just Audit Limited for a further year.

TIML LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
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.

Going concern

After making enquiries, the Directors have a firm expectation that the company has resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

Directors' responsibilities statement
The Directors' responsibilities statement that the Directors agree to is detailed on page 8.
Greenhouse gas emissions, energy consumption and energy efficiency
As the company's consumption is less than 40,000 kWh of energy the company is exempt from making appropriate disclosures on these matters.
Strategic Report
The company has chosen in accordance with Companies Act 2006, section 414 C (11) to set out in the company's Strategic Report certain information required to be contained in the Directors' Report.
On behalf of the board
Mr R Basra
Director
30 September 2024
TIML LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -

The Directors are responsible for preparing the Strategic Report and Directors' 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:

 

 

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.

TIML LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF TIML LTD
- 9 -
Opinion

We have audited the financial statements of TIML Ltd (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the balance sheet, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Other information

The Directors are responsible for the other information. The other information comprises the information included in the Strategic Report and Directors' Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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:

TIML LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TIML LTD
- 10 -
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 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:

Responsibilities of Directors

As explained more fully in the Directors' responsibilities statement, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation, and FCA regulation, recognising the regulated nature of the company's activities. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

 

 

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.

TIML LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TIML LTD
- 11 -
Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

David Fletcher BA BFP FCA (Senior Statutory Auditor)
for and on behalf of Just Audit Limited
30 September 2024
Chartered Accountants &
Strelley Hall
Statutory Auditors
Strelley
NG8 6PE
TIML LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
2,146,995
2,073,768
Cost of sales
(461,007)
(413,042)
Gross profit
1,685,988
1,660,726
Administrative expenses
(893,010)
(707,240)
Other operating income
899
-
0
Operating profit
4
793,877
953,486
Interest receivable and similar income
8
1,335
-
0
Interest payable and similar expenses
9
(2,943)
(2,396)
Profit before taxation
792,269
951,090
Tax on profit
10
(202,530)
(200,900)
Profit for the financial year
589,739
750,190

The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.

 

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

TIML LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
4
210,946
210,950
Year ended 30 June 2023:
Profit and total comprehensive income
-
750,190
750,190
Dividends
11
-
(462,500)
(462,500)
Balance at 30 June 2023
4
498,636
498,640
Year ended 30 June 2024:
Profit and total comprehensive income
-
589,739
589,739
Dividends
11
-
(455,140)
(455,140)
Balance at 30 June 2024
4
633,235
633,239
TIML LTD
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,402
3,031
Current assets
Debtors
13
741,153
540,612
Cash at bank and in hand
369,589
371,749
1,110,742
912,361
Creditors: amounts falling due within one year
14
(479,304)
(415,994)
Net current assets
631,438
496,367
Total assets less current liabilities
633,840
499,398
Provisions for liabilities
Deferred tax liability
15
601
758
(601)
(758)
Net assets
633,239
498,640
Capital and reserves
Called up share capital
17
4
4
Profit and loss reserves
633,235
498,636
Total equity
633,239
498,640
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
Mr R Basra
Director
Company registration number 09228395 (England and Wales)
TIML LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
1
Accounting policies
Company information

TIML Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 14 Hanover Square, London, W1S 1HN.

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 sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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:

 

 

The financial statements of the company are consolidated in the financial statements of Tacit Holdings Limited. These consolidated financial statements are available from its registered office, 14 Hanover Square, London, W1S 1HN.

1.2
Going concern

After making enquiries, the trueDirectors have a firm expectation that income is expected to continue at at least current levels and that together with reserves the company has resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

1.3
Turnover

Discretionary fund management income

Ongoing discretionary portfolio management charges and fund management charges, based on the value of assets invested, are recognised during the period the assets are held in the portfolio of investment fund. Turnover is shown net of VAT and other sales related taxes.

 

Investment consultancy services

Turnover is recognised at the fair value of the consideration received or receivable for consultancy services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

TIML LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Office equipment
33% Straight line basis

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 credited or charged to profit or loss.

1.5
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 profit and loss account 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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.6
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.7
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.8
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

TIML LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The preparation of the financial statements can require 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.

 

In the opinion of the Directors, there are no critical judgements that have a significant effect on amounts recognised in the financial statements.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Provision of financial services
2,146,995
2,073,768
2024
2023
£
£
Turnover analysed by geographical market
UK
2,125,200
2,073,768
Guernsey
21,795
-
2,146,995
2,073,768
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
1,646
1,467
Operating lease charges
25,389
20,794
TIML LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
16,900
12,261
6
Employees

The average monthly number of persons (including Directors) employed by the company during the year was:

2024
2023
Number
Number
10
5

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
311,382
166,931
Social security costs
26,834
10,934
Pension costs
12,772
3,673
350,988
181,538
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
122,000
-
0
Company pension contributions to defined contribution schemes
8,370
-
130,370
-
0

2 Directors were participating in the pension scheme during the year (2023: nil).

 

Directors are also remunerated by dividends paid by the parent company, Tacit Holdings Limited. Dividends paid to the Directors of TIML Limited and their spouses totalled £459,358 (2023: £770,000).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,335
-
0
TIML LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
2,943
2,396
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
202,687
200,763
Deferred tax
Origination and reversal of timing differences
(157)
137
Total tax charge
202,530
200,900

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:

2024
2023
£
£
Profit before taxation
792,269
951,090
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
198,067
194,973
Tax effect of expenses that are not deductible in determining taxable profit
4,463
5,995
Permanent capital allowances in excess of depreciation
(157)
(205)
Deferred tax adjustments in respect of prior years
157
137
Taxation charge for the year
202,530
200,900

The corporation tax main rate for non-ring-fenced profits increased to 25%, applying to profits over £250,000, from 1 April 2023.

11
Dividends
2024
2023
£
£
Interim paid
455,140
462,500
TIML LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
12
Tangible fixed assets
Office equipment
£
Cost
At 1 July 2023
23,355
Additions
1,017
At 30 June 2024
24,372
Depreciation and impairment
At 1 July 2023
20,324
Depreciation charged in the year
1,646
At 30 June 2024
21,970
Carrying amount
At 30 June 2024
2,402
At 30 June 2023
3,031
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
584,301
406,396
Other debtors
11,008
4,288
Prepayments and accrued income
145,844
129,928
741,153
540,612
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
106,278
89,425
Taxation and social security
261,241
247,314
Other creditors
27,820
7,454
Accruals and deferred income
83,965
71,801
479,304
415,994
TIML LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
601
758
2024
Movements in the year:
£
Liability at 1 July 2023
758
Credit to profit or loss
(157)
Liability at 30 June 2024
601
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,772
3,673

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
400
400
4
4
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
34,509
25,252
Between two and five years
67,200
2,144
101,709
27,396
TIML LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
19
Related party transactions

During the year ended 30 June 2024, the company paid £82,500 for consultancy services (2023: £nil) to another company owned by a director and shareholder of the parent company, Tacit Holdings Limited. As at 30 June 2024, a total of £500 was owed to this company (2023:£nil).

20
Parent company

The company is controlled by Tacit Holdings Limited which owns 100% of the called up share capital.

 

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