Company registration number 10868869 (England and Wales)
BCB MARKETS LIMITED (PREVIOUSLY BCB PRIME SERVICES LIMITED)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
BCB MARKETS LIMITED (PREVIOUSLY BCB PRIME SERVICES LIMITED)
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 6
BCB MARKETS LIMITED (PREVIOUSLY BCB PRIME SERVICES LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Inventory
177,180
10,456
Debtors
5
13,388,813
1,790,768
Investments
6
199,394
Cash at bank and in hand
9,754,860
19,029,321
23,320,853
21,029,939
Creditors: amounts falling due within one year
7
(21,610,956)
(19,003,638)
Net current assets
1,709,897
2,026,301
Capital and reserves
Called up share capital
8
100,100
100,100
Profit and loss reserves
1,609,797
1,926,201
Total equity
1,709,897
2,026,301
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 1 October 2024 and are signed on its behalf by:
Mr O Tonkin
Director
Company Registration No. 10868869
BCB MARKETS LIMITED (PREVIOUSLY BCB PRIME SERVICES LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100,100
812,557
912,657
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,113,644
1,113,644
Balance at 31 December 2022
100,100
1,926,201
2,026,301
Year ended 31 December 2023:
Loss and total comprehensive income
-
(316,404)
(316,404)
Balance at 31 December 2023
100,100
1,609,797
1,709,897
BCB MARKETS LIMITED (PREVIOUSLY BCB PRIME SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
BCB Markets Limited (previously BCB Prime Services Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 5 Merchant Square, London, W2 1AS.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements are prepared on a going concern basis as the directors are satisfied that the company has the resources to continue in business for the foreseeable future (which has been taken as 12 months from the date of approval of these financial statements).true
In making this assessment the directors have considered a wide range of information relating to present and future market conditions, revenue and profitability forecasts and cash flow projections. These projections reflect the current balance sheet, the group's funding plans, regulatory capital requirements and capital commitments.
1.3
Revenue
Revenue represents the net value of foreign exchange and crypto asset trades. Purchases of related currency and crypto assets are netted off against turnover. Revenue is ultimately the net position of the sale and purchase of revenue contracts and is recognised at the point the client’s authorisation to undertake a trade.
Purchases of foreign currency and crypto assets are recognised when a back-to-back contract is agreed with a counterparty. The company enters into separate matched contracts with its counterparties in the majority of cases. Where trades are open at the end of a financial period, they are stated at fair value. The resulting gain or loss from the fair value movements is recorded in revenue.
1.4
Current asset investments
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
1.5
Inventory
Inventory consists of crypto assets held for sale by the company at the balance sheet date on a 'mark-to-market’ basis. Inventories are initially recognised at fair value, normally the transaction price, and subsequently carried at fair value using prices sourced from active exchanges. Changes in fair value are recognised in profit or loss.
BCB MARKETS LIMITED (PREVIOUSLY BCB PRIME SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.6
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. Counterparty funds received for trade settlement are included within cash and cash equivalents with a corresponding liability in trade creditors.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet 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 debtors 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 . Financial assets classified as receivable within one year are not amortised.
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.10
Foreign exchange
Transactions in currencies other than pounds 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 profit or loss.
BCB MARKETS LIMITED (PREVIOUSLY BCB PRIME SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Going concern
As stated in note 1.2, the financial statements are prepared on a going concern basis. In making this assessment the directors have considered a wide range of information relating to the future. The group operates in fast moving digital assets markets that, during 2022, experienced adverse market and regulatory sentiment. As a series A business, the group’s success is dependent on revenue growth that is difficult to forecast with certainty, particularly in turbulent market conditions. In addition, the group and the digital assets markets have a limited track record on which to base such forecasts. Accordingly, while the decision to adopt the going concern basis is founded on realistic forecasts, these forecasts are subject to significant uncertainty and actual performance is likely to be different.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
1
2
4
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
199,394
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
13,323,472
88,163
Amounts owed by group undertakings
65,341
1,693,070
Other debtors
9,535
13,388,813
1,790,768
BCB MARKETS LIMITED (PREVIOUSLY BCB PRIME SERVICES LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Debtors
(Continued)
- 6 -
Trade debtors represent currency sales that had not been settled by counterparties with the company at the balance sheet date.
6
Current asset investments
2023
2022
£
£
Other investments
199,394
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
21,331,175
15,127,582
Amounts owed to group undertakings
252,985
3,823,066
Other creditors
26,796
52,990
21,610,956
19,003,638
Trade creditors represent currency purchases that had not been settled by the company with counterparties at the balance sheet date.
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,100
100,100
100,100
100,100
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Daniel Rose
Statutory Auditor:
Gravita Audit II Limited
Date of audit report:
1 October 2024
10
Parent company
The parent company of the company is BCB Group Holdings Limited, incorporated in England and Wales (Company number 11312470). Its registered office address is 5 Merchant Square, London, England, W2 1AS.