Company Registration No. 10611211 (England and Wales)
TACIT HOLDINGS LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
TACIT HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr R Basra
Mr R L Swain
Mr K Charalambous
Mr W P J Jensen
Mr S Hart
(Appointed 9 August 2023)
Company number
10611211
Registered office
14 Hanover Square
London
W1S 1HN
Auditor
Just Audit Limited
Strelley Hall
Strelley
Nottingham
NG8 6PE
TACIT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 8
Directors' responsibilities statement
9
Independent auditor's report
10 - 12
Group profit and loss account
13
Group balance sheet
14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 30
TACIT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

 

The Group consists of the non trading parent company Tacit Holdings Limited (THL/Group) and its trading subsidiary companies, TIML Limited, which trades as Tacit Investment Management (Tacit), and Lucus Wealth Limited (Lucus Wealth). TIML Limited continues to be regulated by the Financial Conduct Authority (FCA) as a Small and Non-Interconnected (SNI) firm. Lucus Wealth Limited is regulated by the FCA to give Independent Financial Advice.

 

Last year, the Directors reported that the Board had agreed to acquire a small, directly regulated, IFA business, Lucus Wealth Limited. Lucus Wealth was acquired by THL on 09 August 2023, following approval from the FCA for the change of control. This is the first financial year in which Lucus Wealth is consolidated in the Group accounts.

Fair review of the business

Tacit’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 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. Tacit's fees are charged as a percentage of the value of client portfolios and its revenue is therefore directly related to movements in investment markets, up and down.

Lucus Wealth provides independent financial advice to clients mainly in the mass affluent and affluent sectors. Lucus Wealth operates on a 'total market' principle and is not restricted to proposing Tacit to its clients who have an investment management requirement. Lucus Wealth charges fees for specific pieces of advice commissioned by its clients.

The Group 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 and Lucus Wealth.

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 15.7% from £2.07m to £2.4m. This is largely due to the inclusion of the results of the newly acquired subsidiary, Lucus Wealth Limited, which contributed £251k to total revenue. However, as noted last year, operating costs have increased again for several reasons, including the inclusion of the results of Lucus Wealth Limited, 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 141% 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 £229k compared with £366k 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 £304k to £1.5m, which indicates the underlying strength of the business.

TACIT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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. In line with the FCA’s Consumer Duty initiatives, the implementation of the business objective requires Tacit to have the permissions to give financial advice and qualified advisers to work alongside the Investment Directors. An application for additional permissions in TIML Limited was initiated with the FCA and confirmation that the application has been approved came 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 to reduce corporate and fee barriers to relevant advice. 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.

 

The Board also recognised that many sole trader financial advisers and shareholders of small IFA businesses are seeking consolidation partners to benefit from a larger scale, or to retire and pass their books of clients to trusted partners. This is the principal rationale for the acquisition of Lucus Wealth, by having two independent streams of growing revenue which are not subject to the same market forces. Since becoming part of the Tacit Group, Lucus Wealth has recruited an additional qualified IFA with an established book of clients and has also successfully acquired a book of clients from an IFA who is retiring from regulated activity.

TACIT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

Principal risks & uncertainties

Operational Risk                                

Operational risks arise from the people, processes, and systems in use within Tacit, or from external events. In the course of the year, Tacit implemented intelliflo office as its client database and operating system. To further enhance our ability to monitor the firm’s alignment to Consumer Duty, 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. Lucus Wealth is already a user of intelliflo and the next stage of implementation will be to seek efficiencies across the Group.

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. Consumer Duty applies equally to Tacit and Lucus Wealth. 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 its business. A range of MI reports have been developed to enable the Senior Management to monitor compliance with the Consumer Duty obligations. As Lucus Wealth evolves within the Group, the Senior Management teams of Tacit and Lucus Wealth will work together to ensure a consistency of approach and culture across Group activities.

A programme of staff training will be critical to embedding Consumer Duty principles into the operations and client culture of Group businesses.

 

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. Lucus Wealth is not subject to IFPR.

 

Technological environment                            

Tacit 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.

The Directors have implemented cybercrime insurance cover and will continue to tighten the firm’s digital security measures as the IT support consultant advises.

At the operational level, the Group has incorporated the UK Government’s 10 Steps to Cyber Security into our day-to-day management of the firm.

TACIT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

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.

 

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. Both Tacit and Lucus Wealth are positioned to offer the expert advice which clients in their respective target markets will require.

 

 

Capital adequacy

The regulated subsidiary, TIML Limited, is required to maintain minimum regulatory capital and liquidity levels as identified in the firm’s ICARA report. As an SNI regulated firm, Tacit continues to be capitalised in excess of regulator-imposed minimum capital adequacy and liquidity requirements. Tacit’s capital adequacy requirement is calculated based on three months contracted fixed costs.

 

Competitive environment, social and market forces

 

The Group 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 and performance

 

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

 

Key performance indicators

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

 

Unit      2024     2023    

Turnover        £    2,398,322    2,073,768

Operating profit        £     469,221     587,719    

TACIT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
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. TIML's 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. Lucus Wealth operates from an office in Uxbridge.

TACIT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
Other information and explanations

Section 172 Statement and engagement with stakeholders

 

The Group 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 Group 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 Group 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 Group considers our clients to be one of the most important stakeholder Groups of our business model. Tacit and Lucus Wealth place the highest emphasis on personal service to each client and regularly review 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 Group 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 Group 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 Group 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 subsidiaries. The subsidiaries are 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 subsidiaries recognise the importance of meeting their reporting obligations to the FCA and take 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 Group’s operations on the community and environment. Wherever possible, the Group 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
9 October 2024
TACIT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -

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

Principal activities

The principal activity of Tacit Holdings Limited is to be the holding company of TIML Limited and Lucus Wealth Limited.

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 Basra
Mr R L Swain
Mr K Charalambous
Mr L Stephens
(Resigned 13 September 2024)
Mr W P J Jensen
Mr S Hart
(Appointed 9 August 2023)
Dividends

Dividends declared after the year end and up to the date of approval of these financial statements totalled £115,052

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.

 

Future developments

The Directors have developed a business plan through the year that envisages offering financial advice services alongside the existing investment advice business of TIML Limited. The plan takes account of the new FCA Consumer Duty regulations as the Directors believe that providing wider, more holistic advice will become necessary to the client segment the Group targets.

To this end, an application was made by TIML Limited to the FCA for additional permissions to give financial advice on pensions and insurance. The FCA approved the application after the financial year end, making this a post-balance sheet development. It will enable TIML Limited to develop a holistic wealth management proposition for clients falling within its target market. Separately, the acquisition of Lucus Wealth Limited, adds a further dimension to the Group and Lucus Wealth will develop its independent financial advice services in its target markets.

TACIT HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
Auditor

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

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 auditor of the Group 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 auditor of the Group is aware of that information.

Going concern

After making enquiries, the Directors have a firm expectation that the Group 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 Group 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 Group's consumption is less than 40,000 kWh of energy the Group is exempt from making appropriate disclosures on these matters.
Strategic Report
The Group has chosen in accordance with Companies Act 2006, section 414 C (11) to set out in the Group's Strategic Report certain information required to be contained in the Directors' Report.
On behalf of the board
Mr R Basra
Director
9 October 2024
TACIT HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -

The Directors are responsible for preparing the Strategic Report, 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 Group and company, and of the profit or loss of the Group 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 Group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and 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 Group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TACIT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TACIT HOLDINGS LIMITED
- 10 -
Opinion

We have audited the financial statements of Tacit Holdings Limited (the 'parent company') and its subsidiaries (the 'Group') the year ended 30 June 2024 which comprise the Group profit and loss account, the Group balance sheet, the company balance sheet, the Group statement of changes in equity, the company statement of changes in equity, the Group statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

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 Group 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 Group's and the parent 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

TACIT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TACIT HOLDINGS LIMITED
- 11 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent company and their 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 Group's and the parent 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 Group or the parent company or to cease operations, or have no realistic alternative but to do so.

TACIT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TACIT HOLDINGS LIMITED
- 12 -
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 parent company and the Group and the industry in which it operates and considered the risk of acts by the parent company and the Group 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, UK tax legislation, and FCA regulation, recognising the regulated nature of the Group'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.

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.

David Fletcher BA BFP FCA (Senior Statutory Auditor)
for and on behalf of Just Audit Limited
9 October 2024
Chartered Accountants and
Statutory Auditors
Strelley Hall
Strelley
Nottingham
NG8 6PE
TACIT HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£
£
Turnover
4
2,398,322
2,073,768
Cost of sales
(465,523)
(413,042)
Gross profit
1,932,799
1,660,726
Administrative expenses
(1,464,477)
(1,073,007)
Other operating income
899
-
Operating profit
3
469,221
587,719
Interest receivable and similar income
2,608
-
0
Interest payable and similar expenses
(17,239)
(21,032)
Profit before taxation
454,590
566,687
Tax on profit
8
(225,868)
(200,900)
Profit for the financial year
19
228,722
365,787
Profit for the financial year is all attributable to the owners of the parent company.

The Group profit and loss account has been prepared on the basis that all operations are continuing operations.

 

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

TACIT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
1,614,654
1,463,070
Tangible assets
10
2,793
3,031
1,617,447
1,466,101
Current assets
Debtors
13
231,994
134,250
Cash at bank and in hand
416,505
371,749
648,499
505,999
Creditors: amounts falling due within one year
14
(640,147)
(553,998)
Net current assets/(liabilities)
8,352
(47,999)
Total assets less current liabilities
1,625,799
1,418,102
Creditors: amounts falling due after more than one year
15
(95,262)
(190,966)
Provisions for liabilities
Deferred tax liability
17
601
758
(601)
(758)
Net assets
1,529,936
1,226,378
Capital and reserves
Called up share capital
18
17
37
Other reserves
19
3,409,969
2,809,970
Profit and loss reserves
19
(1,880,050)
(1,583,629)
Total equity
1,529,936
1,226,378
The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
09 October 2024
Mr R Basra
Director
Company registration number 10611211 (England and Wales)
TACIT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
1,044,634
1,032,933
Current assets
Debtors
13
10
34
Creditors: amounts falling due within one year
14
(736,100)
(544,400)
Net current liabilities
(736,090)
(544,366)
Total assets less current liabilities
308,544
488,567
Creditors: amounts falling due after more than one year
15
(95,262)
(190,966)
Net assets
213,282
297,601
Capital and reserves
Called up share capital
18
17
37
Profit and loss reserves
19
213,265
297,564
Total equity
213,282
297,601

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £440,844 (2023 - £443,864 profit).

The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
09 October 2024
Mr R Basra
Director
Company registration number 10611211 (England and Wales)
TACIT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
Share capital
Other Reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
37
2,809,970
(1,179,416)
1,630,591
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
365,787
365,787
Dividends
7
-
-
(770,000)
(770,000)
Balance at 30 June 2023
37
2,809,970
(1,583,629)
1,226,378
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
228,722
228,722
Bonus issue of shares
18
3
-
(3)
-
0
Dividends
7
-
-
(525,140)
(525,140)
Arising on acquisition of subsidiary
9
-
599,999
-
599,999
Redemption of shares
(23)
-
-
(23)
Balance at 30 June 2024
17
3,409,969
(1,880,050)
1,529,936
TACIT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
37
623,700
623,737
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
443,864
443,864
Dividends
7
-
(770,000)
(770,000)
Balance at 30 June 2023
37
297,564
297,601
Year ended 30 June 2024:
Profit and total comprehensive income
-
440,844
440,844
Bonus issue of shares
18
3
(3)
-
0
Dividends
7
-
(525,140)
(525,140)
Redemption of shares
(23)
-
(23)
Balance at 30 June 2024
17
213,265
213,282
TACIT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
849,175
969,518
Interest paid
(2,943)
(2,396)
Income taxes paid
(215,472)
(215,931)
Net cash inflow from operating activities
630,760
751,191
Investing activities
Purchase of tangible fixed assets
(1,017)
(2,014)
Purchase of subsidiaries, net of cash acquired
71,919
-
Repayment of loans
(24,351)
-
Interest received
2,608
-
0
Net cash generated from/(used in) investing activities
49,159
(2,014)
Financing activities
Redemption of shares
(23)
-
0
Repayment of borrowings
(110,000)
(110,000)
Dividends paid to equity shareholders
(525,140)
(741,996)
Net cash used in financing activities
(635,163)
(851,996)
Net increase/(decrease) in cash and cash equivalents
44,756
(102,819)
Cash and cash equivalents at beginning of year
371,749
474,568
Cash and cash equivalents at end of year
416,505
371,749
TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
1
Judgements and key sources of estimation uncertainty

In the application of the Group’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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

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.

 

(i) Impairment of Goodwill

 

The Group establishes a reliable estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business and the expected useful life of the cash generating units to which the goodwill is attributed. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired, in accordance with the accounting policy.

2
Accounting policies
Company information

Tacit Holdings Limited (“the company”) is a private limited company limited by shares domiciled and incorporated in England and Wales. The registered office is 14 Hanover Square, London, W1S 1HN.

 

The Group consists of Tacit Holdings Limited and all of its subsidiaries.

2.1
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 Group. 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.

Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:

TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 20 -
2.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

2.3
Basis of consolidation

The consolidated financial statements consist of the financial statements of the parent company Tacit Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 June 2024.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

2.4
Going concern

After making enquiries, the Directors have a firm expectation that income is expected to continue at at least current levels and that together with reserves the Group 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.

2.5
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.

2.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

2.7
Tangible fixed assets

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

TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 21 -

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 recognised in the profit and loss account.

2.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

 

2.9
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 Group’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.

2.10
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 Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 22 -
2.11
Retirement benefits

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

2.12
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.

3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
1,810
1,467
Amortisation of intangible assets
417,977
365,767
Operating lease charges
39,789
20,794
4
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Render of services
2,398,322
2,073,768
2024
2023
£
£
Turnover analysed by geographical market
UK
2,376,527
2,073,768
Guernsey
21,795
-
2,398,322
2,073,768
2024
2023
£
£
Other revenue
Interest income
2,608
-
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
12
5
-
0
-
0
TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
379,895
166,931
-
0
-
0
Social security costs
26,834
10,934
-
-
Pension costs
30,119
3,673
-
0
-
0
436,848
181,538
-
0
-
0

The Directors received remuneration of £176,676 (2023: £nil)

 

3 Directors were participating in defined contribution schemes during the year (2023: none).

6
Auditor's remuneration
2024
2023
Fees payable to the group's auditors:
£
£
For audit services
Audit of the financial statements of the Group and company
4,000
2,000
Audit of the financial statements of the company's subsidiaries
20,900
10,261
24,900
12,261
7
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
525,140
770,000
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
226,025
200,763
Deferred tax
Origination and reversal of timing differences
(157)
137
Total tax charge
225,868
200,900
TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
8
Taxation
(Continued)
- 24 -

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
454,590
566,687
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
113,648
116,171
Tax effect of expenses that are not deductible in determining taxable profit
112,637
84,797
Permanent capital allowances in excess of depreciation
(157)
(205)
Deferred tax adjustments in respect of prior years
157
137
Tax at marginal rate
(417)
-
0
Taxation charge
225,868
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.

9
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023
3,657,674
Additions
569,561
At 30 June 2024
4,227,235
Amortisation and impairment
At 1 July 2023
2,194,604
Amortisation charged for the year
417,977
At 30 June 2024
2,612,581
Carrying amount
At 30 June 2024
1,614,654
At 30 June 2023
1,463,070
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Intangible fixed assets
(Continued)
- 25 -

On 9 August 2023, Tacit Holdings Limited acquired the shares of Lucus Wealth Limited for a total cost of £611,700. This consisted of 653,707 Ordinary shares, issued as a share for share exchange for 4,100 Ordinary shares in Lucus Wealth Limited. Revenue of the acquired subsidiary for the year ended 30 June 2024 was £212K and profit after tax was £44K. Acquisition accounting has been applied. The assets and liabilities acquired were as follows:

 

 

Carrying value £         Fair value £

Fixed assets                 555             555

Debtors                     59,305             59,305        

Cash                     83,621             83,621

Creditors                (95,635)             (95,635)

Deferred tax adjustments             (5,707)             (5,707)

----------------         ----------------

Total identifiable assets and liabilities     42,139             42,139

Goodwill                569,561            569,561

----------------         ----------------

Total consideration             611,700            611,700

----------------          ---------------

10
Tangible fixed assets
Group
Fixtures and fittings
Office equipment
Total
£
£
£
Cost
At 1 July 2023
-
0
19,834
19,834
Additions
-
0
1,017
1,017
Disposals
(4,344)
-
0
(4,344)
Arising on acquisition
4,344
819
5,163
At 30 June 2024
-
0
21,670
21,670
Depreciation and impairment
At 1 July 2023
-
0
16,803
16,803
Depreciation charged in the year
-
0
1,810
1,810
Eliminated in respect of disposals
(4,344)
-
0
(4,344)
Arising on acquisition
4,344
264
4,608
At 30 June 2024
-
0
18,877
18,877
Carrying amount
At 30 June 2024
-
0
2,793
2,793
At 30 June 2023
-
0
3,031
3,031
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.
11
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
TIML Limited
14 Hanover Square, London, England, W1S 1HN
Ordinary
100.00
Lucus Wealth Ltd
14 Hanover Square, London, England, W1S 1HN
Ordinary
100.00
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
1,044,634
1,032,933
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost
At 1 July 2023
1,032,933
Additions
11,701
At 30 June 2024
1,044,634
Carrying amount
At 30 June 2024
1,044,634
At 30 June 2023
1,032,933
13
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Other debtors
35,893
4,322
10
34
Prepayments and accrued income
196,101
129,928
-
0
-
0
231,994
134,250
10
34
TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
14
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Other borrowings
110,000
110,000
110,000
110,000
Trade creditors
106,420
89,425
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
610,187
406,396
Corporation tax payable
226,025
200,763
-
0
-
0
Other taxation and social security
60,765
46,551
-
-
Other creditors
43,733
35,458
15,913
28,004
Accruals and deferred income
93,204
71,801
-
0
-
0
640,147
553,998
736,100
544,400
15
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Other borrowings
95,262
190,966
95,262
190,966
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,119
3,673

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the Group in an independently administered fund.

17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
601
758
The company has no deferred tax assets or liabilities. (2023: none).
TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
17
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
758
-
Credit to profit or loss
(157)
-
Liability at 30 June 2024
601
-
18
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.0002p each
8,716,097
-
17
-
Ordinary A shares of 1p each
-
990
-
10
Ordinary B shares of 1p each
-
400
-
4
Ordinary C shares of 1p each
-
300
-
3
Ordinary D shares of 1p each
-
100
-
1
Ordinary E shares of 1p each
-
100
-
1
Ordinary F shares of 1p each
-
100
-
1
Ordinary G shares of 1p each
-
400
-
4
8,716,097
2,390
17
24
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference A shares of 1p each
-
319
-
3
Preference B shares of 1p each
-
1,000
-
10
-
1,319
-
13
Preference shares classified as equity
-
13
Total equity share capital
17
37
19
Reserves
Other Reserves

Other reserves arose upon acquisition of the subsidiary companies and represent the excess of fair value over nominal value of shares issued as consideration.

TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
19
Reserves
(Continued)
- 29 -
Profit and loss reserves

The profit and loss account includes all retained profits and losses.

20
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
48,909
25,252
-
-
Between two and five years
90,000
2,144
-
-
138,909
27,396
-
-
21
Related party transactions

For the first part of the year, the Group leased a property with an annual charge of £14,400 (2023:£nil) from a company under the control of a Director and his wife. Subsequently this arrangement transferred to a pension fund in the name of two of the Directors.

 

Dividends of £485,243 (2023:£769,996) were paid to the Directors and their close family.

 

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

 

During the year a subsidiary made advances to a Director of £24,375, which were outstanding at 30 June 2024 (2023:£nil). No interest is being charged on this loan and it is repayable on demand.

TACIT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
22
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
228,722
365,787
Adjustments for:
Taxation charged
225,868
200,900
Finance costs
17,239
21,032
Investment income
(2,608)
-
0
Amortisation and impairment of intangible assets
417,977
365,767
Depreciation and impairment of tangible fixed assets
1,810
1,467
Movements in working capital:
Increase in debtors
(100,719)
(13,971)
Increase in creditors
60,886
28,536
Cash generated from operations
849,175
969,518

 

23
Analysis of changes in net funds - group
1 July 2023
Cash flows
Other non cash movements
30 June 2024
£
£
£
£
Cash at bank and in hand
371,749
44,756
-
416,505
Borrowings due in < 1 year
(110,000)
-
-
(110,000)
Borrowings due in > 1 year
(190,966)
110,000
(14,296)
(95,262)
70,783
154,756
(14,296)
211,243
2024-06-302023-07-01falseCCH SoftwareCCH Accounts Production 2024.100Mr R BasraMr R L SwainMr K CharalambousMr L StephensMr W P J JensenMr S Hartfalse106112112023-07-012024-06-3010611211bus:Director12023-07-012024-06-3010611211bus:Director22023-07-012024-06-3010611211bus:Director32023-07-012024-06-3010611211bus:Director52023-07-012024-06-3010611211bus:Director62023-07-012024-06-3010611211bus:Director42023-07-012024-06-3010611211bus:RegisteredOffice2023-07-012024-06-3010611211bus:Consolidated2023-07-012024-06-3010611211bus:Consolidated2024-06-3010611211bus:Consolidated2022-07-012023-06-30106112112022-07-012023-06-30106112112024-06-3010611211core:Goodwillbus:Consolidated2024-06-3010611211core:Goodwillbus:Consolidated2023-06-3010611211bus:Consolidated2023-06-3010611211core:FurnitureFittingsbus:Consolidated2024-06-3010611211core:ComputerEquipmentbus:Consolidated2024-06-3010611211core:FurnitureFittingsbus:Consolidated2023-06-3010611211core:ComputerEquipmentbus:Consolidated2023-06-3010611211core:ShareCapitalbus:Consolidated2024-06-3010611211core:ShareCapitalbus:Consolidated2023-06-3010611211core:OtherMiscellaneousReservebus:Consolidated2024-06-3010611211core:OtherMiscellaneousReservebus:Consolidated2023-06-3010611211core:ShareCapital2024-06-3010611211core:ShareCapital2023-06-3010611211core:RetainedEarningsAccumulatedLosses2024-06-3010611211core:ShareCapitalbus:Consolidated2022-06-30106112112022-06-3010611211core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-06-3010611211core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-06-3010611211core:ShareCapital2022-06-3010611211core:RetainedEarningsAccumulatedLosses2022-06-3010611211core:RetainedEarningsAccumulatedLosses2023-06-30106112112023-06-3010611211core:ShareCapitalbus:Consolidated2023-07-012024-06-3010611211core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-07-012024-06-3010611211core:ShareCapital2023-07-012024-06-3010611211core:RetainedEarningsAccumulatedLosses2023-07-012024-06-3010611211bus:Consolidated2022-06-3010611211core:Goodwill2023-07-012024-06-3010611211core:ComputerEquipment2023-07-012024-06-3010611211core:UKTaxbus:Consolidated2023-07-012024-06-3010611211core:UKTaxbus:Consolidated2022-07-012023-06-3010611211bus:Consolidated12023-07-012024-06-3010611211bus:Consolidated12022-07-012023-06-3010611211core:Goodwillbus:Consolidated2023-06-3010611211core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-07-012024-06-3010611211core:Goodwillbus:Consolidated2023-07-012024-06-3010611211core:FurnitureFittingsbus:Consolidated2023-06-3010611211core:ComputerEquipmentbus:Consolidated2023-06-3010611211bus:Consolidated2023-06-3010611211core:FurnitureFittingsbus:Consolidated2023-07-012024-06-3010611211core:ComputerEquipmentbus:Consolidated2023-07-012024-06-3010611211core:Subsidiary12023-07-012024-06-3010611211core:Subsidiary22023-07-012024-06-301061121112023-07-012024-06-3010611211core:CurrentFinancialInstruments2024-06-3010611211core:CurrentFinancialInstruments2023-06-3010611211core:CurrentFinancialInstrumentsbus:Consolidated2024-06-3010611211core:CurrentFinancialInstrumentsbus:Consolidated2023-06-3010611211core:Non-currentFinancialInstrumentsbus:Consolidated2024-06-3010611211core:Non-currentFinancialInstrumentsbus:Consolidated2023-06-3010611211core:Non-currentFinancialInstruments2024-06-3010611211core:Non-currentFinancialInstruments2023-06-3010611211core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-06-3010611211core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-06-3010611211core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3010611211core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3010611211bus:PrivateLimitedCompanyLtd2023-07-012024-06-3010611211bus:FRS1022023-07-012024-06-3010611211bus:Audited2023-07-012024-06-3010611211bus:ConsolidatedGroupCompanyAccounts2023-07-012024-06-3010611211bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP