REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
PARITYFX PLC |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
PARITYFX PLC |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Statement of Income and Retained Earnings | 7 |
Balance Sheet | 8 |
Cash Flow Statement | 9 |
Notes to the Cash Flow Statement | 10 |
Notes to the Financial Statements | 11 |
PARITYFX PLC |
COMPANY INFORMATION |
For The Year Ended 30 June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
STRATEGIC REPORT |
For The Year Ended 30 June 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
ParityFX Plc is a financial services company that focuses, primarily, on executing foreign exchange transactions, and providing structured FX solutions and currency advice to corporations and high net worth private clients. ParityFX Plc is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of payment services. Additionally, ParityFX Plc is regulated by HM Revenue and Customs for Money Remittance and Money Laundering. |
REVIEW OF BUSINESS |
The directors maintained strong control over costs in an inflationary environment and continued to foster strong client relationships. FX management of company funds ensured that currency risks were mitigated, despite fairly significant swings during the year. The directors continue to establish new clients, and study new markets in the anticipation of future revenue growth. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company is managed by its directors who determine its business strategy and risk appetite. They are also responsible for establishing and maintaining the company's governance arrangements along with designing and implementing a risk management framework that recognises the risk that the business faces. |
The directors also determine how the risk the business faces may be mitigated and assess on an ongoing basis the arrangement to manage those risks. The directors meet on a regular basis and discuss current projections for profitability, cash flow, regulatory capital management, and business planning and risk management. The directors manage the company's business risk through a framework of policy and procedures having regard to relevant laws, standards, principles, and rules (including FCA principles and rules) with the aim to operate a defined and transparent risk management framework. These policies and procedures are updated as required. |
The directors have identified that business, operational, market and credit risks are the main areas of risk to which the company is exposed. Annually the directors formally review their risks, controls and other risk mitigation arrangements and assess their effectiveness. Where the directors identify material risks, they consider the financial impact of these risks as part of their business planning and capital management. |
The directors continue to consider banking relationships as one of the key risks to the business. This is because banks may change their approach to the MSB sector at any time due to changing regulatory policies and for commercial reasons. As such, the directors will continue to focus on broadening the number of banking relationships that ParityFX Plc can establish to ensure that the company's operational activities cannot be impeded. |
KEY PERFORMANCE INDICATORS |
Systems have been developed to automatically capture and monitor key performance metrics for various aspects of the business including (but not exclusive to) client acquisitions, revenue, seasonality, and counterparties. The directors monitor the information to assess the effectiveness of ongoing business activity and to identify threats and opportunities for the company. |
ON BEHALF OF THE BOARD: |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
REPORT OF THE DIRECTORS |
For The Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
ParityFx Plc is a financial services company that focuses, primarily, on executing foreign exchange transactions, and providing structured FX solutions and currency advice to businesses, private clients and Hedge Funds. ParityFX Plc is authorised by the Financial Conduct Authority under the Payment Services Regulations 2009 for the provision of payment services. Additionally, ParityFX Plc is regulated by HM Revenue and Custom for Money Remittance and Money Laundering. |
DIVIDENDS |
An interim dividend of £ |
The total distribution of dividends for the year ended 30 June 2024 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Caldwell Penn Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARITYFX PLC |
Opinion |
We have audited the financial statements of Parityfx Plc (the 'company') for the year ended 30 June 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' 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 in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARITYFX PLC |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page three, 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 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. |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to breaches of regulations issued by the Financial Conduct Authority, and we considered the extent to which non-compliance might have a material effect on the financial statements. |
We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. |
In common with all audits under ISAs (UK), we also performed specific procedures to respond to the risk of |
management override. |
Audit procedures performed in respect of the above included: |
* consideration of the nature of the industry and sector, control environment and business performance; |
* discussions with management to understand their assessment of the risks of irregularities; |
* consideration of known or suspected instances of non-compliance with laws and regulation and fraud; |
* making enquiries of the company's compliance consultant; |
* identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and considering whether these are indicative of potential bias; |
* reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations; |
* evaluating management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls); and |
* evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
As a result of performing the above, no key audit matters were identified that related to the potential risk of fraud. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARITYFX PLC |
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 a Report of the Auditors 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. |
for and on behalf of |
7a Abbey Business Park |
Monks Walk |
Farnham |
Surrey |
GU9 8HT |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
STATEMENT OF INCOME AND RETAINED EARNINGS |
For The Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Administrative expenses |
OPERATING PROFIT | 4 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 7 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
BALANCE SHEET |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Retained earnings | 13 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
CASH FLOW STATEMENT |
For The Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from financing activities |
Amount withdrawn by directors | (684 | ) | (648 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 646,141 |
Cash and cash equivalents at end of year | 2 | 511,435 | 550,573 |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
NOTES TO THE CASH FLOW STATEMENT |
For The Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 14,743 | 13,599 |
55,439 | 19,612 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 511,435 | 550,573 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 550,573 | 646,141 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank | 550,573 | (39,138 | ) | 511,435 |
550,573 | ( |
) | 511,435 |
Total | 550,573 | (39,138 | ) | 511,435 |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Parityfx Plc is a private company , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. There are no judgements that have had a significant effect on these financial statements. |
The following principal accounting policies have been applied: |
Turnover |
Turnover represents the aggregate of: |
- | Revenue generated from FX execution which arises from the spread between the market rate and the agreed client rate; |
- | Transfer fees which are generated from an agreed percentage rate of pound sterling transfer amounts sent on behalf of a specific client; |
- | The gains or losses due to foreign exchange rate movements over the reporting period of ParityFX own funds held in other currency denominations. |
Turnover is recognised as the right to consideration arises and adjustments are made for accrued and deferred income. |
Revenue recognition |
Revenue is recognised after receiving customer authorisation to undertake foreign currency transactions, and after having entered into a hedging foreign currency transaction with counterparty financial institutions. In addition revenue can also be recognised (only with a specific set of clients who have agreed to this arrangement) when receiving customer instruction to undertake chargeable transfer payment services. |
Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended by management. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
Office equipment | - | 25% on cost |
Financial instruments |
The company enters into basic financial instruments, which result in the recognition of financial assets and liabilities. Financial instruments are recognised at amortised cost. At the end of each reporting period financial instruments are assessed for evidence of impairment, and changes are recognised in profit or loss. |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. |
Consideration is given to whether deferred tax should be provided in respect of material timing differences which have not reversed at the balance sheet date. Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits. |
Current tax assets and liabilities are not discounted and are recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
There are no factors that may affect future tax charges. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
3. | EMPLOYEES AND DIRECTORS |
The average monthly number of employees during the year was as follows: |
2024 | 2023 |
Directors | 2 | 2 |
2 | 2 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Foreign exchange differences | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit services |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Total tax charge | 7,781 | 1,150 |
7. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £500 each |
Interim |
8. | TANGIBLE FIXED ASSETS |
Office |
equipment |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
PARITYFX PLC (REGISTERED NUMBER: 08572919) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Other debtors |
Prepayments and accrued income |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Corporation tax |
Directors' current accounts | 152,841 | 153,525 |
Accruals and deferred income |
11. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £500 | 125,000 | 125,000 |
13. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 June 2024 |
14. | RELATED PARTY DISCLOSURES |
As at 30 June 2024, the directors had loaned the company £152,841 (2023 - £153,525). Interest of £14,743 (2023 - £13,599) was charged on the loans at a rate of 8.5% and the loans are repayable upon demand. |
During the year ended 30 June 2024, the directors executed personal trades to the value of £8,697 (2023 - £22,017). As at 30 June 2024, the amount outstanding in relation to these trades was £nil (2023 - £nil). |