Caseware UK (AP4) 2023.0.135 2023.0.135 2024-01-312024-05-242024-05-242024-01-312024-05-24false2023-02-01falseProvision of investment management services1110false 08260823 2023-02-01 2024-01-31 08260823 2022-02-01 2023-01-31 08260823 2024-01-31 08260823 2023-01-31 08260823 2022-02-01 08260823 1 2023-02-01 2024-01-31 08260823 1 2022-02-01 2023-01-31 08260823 2 2023-02-01 2024-01-31 08260823 2 2022-02-01 2023-01-31 08260823 5 2023-02-01 2024-01-31 08260823 5 2022-02-01 2023-01-31 08260823 d:Director1 2023-02-01 2024-01-31 08260823 d:Director2 2023-02-01 2024-01-31 08260823 d:RegisteredOffice 2023-02-01 2024-01-31 08260823 d:Agent1 2023-02-01 2024-01-31 08260823 d:Agent2 2023-02-01 2024-01-31 08260823 e:FurnitureFittings 2023-02-01 2024-01-31 08260823 e:FurnitureFittings 2024-01-31 08260823 e:FurnitureFittings 2023-01-31 08260823 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 08260823 e:OfficeEquipment 2023-02-01 2024-01-31 08260823 e:OfficeEquipment 2024-01-31 08260823 e:OfficeEquipment 2023-01-31 08260823 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 08260823 e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 08260823 e:CurrentFinancialInstruments 2024-01-31 08260823 e:CurrentFinancialInstruments 2023-01-31 08260823 e:Non-currentFinancialInstruments 2024-01-31 08260823 e:Non-currentFinancialInstruments 2023-01-31 08260823 e:CurrentFinancialInstruments e:WithinOneYear 2024-01-31 08260823 e:CurrentFinancialInstruments e:WithinOneYear 2023-01-31 08260823 e:UKTax 2023-02-01 2024-01-31 08260823 e:UKTax 2022-02-01 2023-01-31 08260823 e:ShareCapital 2024-01-31 08260823 e:ShareCapital 2023-01-31 08260823 e:ShareCapital 2022-02-01 08260823 e:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 08260823 e:RetainedEarningsAccumulatedLosses 2024-01-31 08260823 e:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 08260823 e:RetainedEarningsAccumulatedLosses 2023-01-31 08260823 e:RetainedEarningsAccumulatedLosses 2022-02-01 08260823 e:OtherDeferredTax 2024-01-31 08260823 e:OtherDeferredTax 2023-01-31 08260823 d:OrdinaryShareClass1 2023-02-01 2024-01-31 08260823 d:OrdinaryShareClass1 2024-01-31 08260823 d:OrdinaryShareClass1 2023-01-31 08260823 d:FRS102 2023-02-01 2024-01-31 08260823 d:Audited 2023-02-01 2024-01-31 08260823 d:FullAccounts 2023-02-01 2024-01-31 08260823 d:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 08260823 e:WithinOneYear 2024-01-31 08260823 e:WithinOneYear 2023-01-31 08260823 e:BetweenOneFiveYears 2024-01-31 08260823 e:BetweenOneFiveYears 2023-01-31 08260823 6 2023-02-01 2024-01-31 xbrli:shares iso4217:GBP xbrli:pure


Registered number: 08260823












PARUS FINANCE (UK) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

 

PARUS FINANCE (UK) LTD

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 3
Directors' report
 
4 - 5
Independent auditor's report
 
6 - 8
Statement of income and retained earnings
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Notes to the financial statements
 
13 - 23


 

PARUS FINANCE (UK) LTD
 
COMPANY INFORMATION


Directors
F Vecchioli 
E Vecchioli 




Registered number
08260823



Registered office
100 Pall Mall

London

SW1Y 5NQ




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Bankers
Coutts & Co.
440 Strand

London

WC2R 0QS





Barclays Bank

First Floor

27 Soho Square

London

W1S 3QR




Page 1

 

PARUS FINANCE (UK) LTD
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Principal activities and business review
 
The Company is an authorized investment fund management company. It provides investment management  services to four funds. Three funds deploy the same long / short investment strategy, namely Parus Fund PLC  (an Irish Qualifying Investor Alternative Investment Fund), Parus Fund LLC (a US qualified Investor Fund) and  InRIS Parus, formerly R Parus Fund, (a sub-fund of InRIS UCITS PLC, an Irish UCITS umbrella fund). The  fourth fund, Parus Global Opportunities Fund (a sub-fund or Parus ICAV PLC, an Irish UCITS umbrella fund was launched on January 4th 2021 and deploys a long only investment strategy. 
The Parus long / short funds are global equity investment funds investing primarily in North American and European listed equities in large companies. The investment objective is to generate absolute returns on each  individual investment by targeting, on the long side, mainly growth stocks with a competitive advantage and on  the short side, structurally declining companies with operating or financial leverage. Some of the trading strategies may involve the use of leverage. 
The Parus long only fund strategy is a relative value, fully invested strategy that focuses on investments primarily in North American and European equities. The objective is to generate outperformance to the MSCI World index  taking a fundamental three to five year view on investments. The strategy targets quality, high growth companies with a competitive advantage. A portion of the portfolio is also invested in value companies, either defensive or cyclical. 
Stocks included in the portfolios of both strategies are the result of a pure bottom-up, fundamental stock-picking methodology supported by the use of primary data. 

Principal risks and uncertainties
 
The process of risk identification and risk management is addressed through a framework of policies, procedures and internal controls. This framework identifies the risks that the company is exposed to and their impact on economic capital. This process is risk based and uses Individual Capital Assessment principles manage our capital requirements and to ensure we have the financial strength and capital adequacy to support the growth or decline of the business. 
The principal risk arising from our investment management business is a reduction in the receipt of investment management fees, be it through a reduction in funds under management or negative performance of the funds themselves. 

Financial key performance indicators
 
The Company's directors consider the profit for the year as main performance indicator of the Company's position. 
Other key indicators considered are the value of the total assets under management of the funds and the performance of those funds. Assets under management at 31 January 2024 was $475m. For the 2023 calendar year, performance was as follows: Parus Fund PLC 6.6%, Parus Fund LLC 7.0%, R Parus Fund +6.6% and Parus Global Opportunities Fund +21.66%.

Results
 
The results of the Company for the year, as set out on page 9, show a loss on ordinary activities before tax of €1,869,991 (2023 profit - €65,350). The shareholders' funds of the Company total €16,972,874 (2023 €26,486,553).

Page 2

 

PARUS FINANCE (UK) LTD

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Directors' statement of compliance with duty to promote the success of the Company
 
In compliance with s172(1) of the Companies Act. 2006; the Directors maintain transparent communication with the Company's stakeholders including: its employees and suppliers taking the interests of all into account, without bias, when committing to long term corporate decisions. The Company has a small workforce and a small number of suppliers and therefore the Directors are able to foster strong business relationships and through personal involvement and to consider the impacts of decisions on stakeholders on an individual basis. The maintenance of high standards in every aspect of operations, including stakeholder transparency and business conduct, is considered a priority by the Directors of the Company. 

Future outlook

Investment management continues to be a challenging business. However given the depth of experience the Directors have; they continue to be cautiously optimistic. 


This report was approved by the board on 24 May 2024 and signed on its behalf.



F Vecchioli
Director

Page 3

 

PARUS FINANCE (UK) LTD

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The directors present their report and the financial statements for the year ended 31 January 2024.

Results and dividends

The loss for the year, after taxation, amounted to 1,431,743 (2023 - loss 381,097).

A dividend of €8,000,000 (2023 - €8,000,000) was declared and paid during the year. 

Directors

The directors who served during the year were:

F Vecchioli 
E Vecchioli 

Public disclosures

The Company has documented the disclosures required by the FCA under MIFIDPRU 8 and MIFIDPRU TP12. These can be found on our website. 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Engagement with suppliers, customers and others

Information on engagement with suppliers, customers and others are included in the Strategic Report.

Page 4

 

PARUS FINANCE (UK) LTD

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, Blick Rothenberg Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 May 2024 and signed on its behalf.
 





F Vecchioli
Director

Page 5

 

PARUS FINANCE (UK) LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARUS FINANCE (UK) LTD
 FOR THE YEAR ENDED 31 JANUARY 2024

Opinion

We have audited the financial statements of Parus Finance (UK) Ltd (the 'Company') for the year ended 31 January 2024, which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 31 January 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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.

Page 6

 

PARUS FINANCE (UK) LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARUS FINANCE (UK) LTD (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. 
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and non- compliance with laws and regulations, our procedures included the following: enquiring of management  concerning the Company's policies with regards identifying, evaluating and complying with laws and regulations  and whether they were aware of any instances of non-compliance; enquiring of management concerning the  Company's policies detecting and responding to the risks of fraud and whether they have knowledge of any  actual, suspected or alleged fraud; enquiring of management concerning the Company's policies in relation to  the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;  discussing among the engagement team where fraud might occur in the financial statements and any potential  indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the Company
Page 7

 

PARUS FINANCE (UK) LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARUS FINANCE (UK) LTD (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Company. The key laws and regulations we considered in this  context included the UK Companies Act 2006, the Financial Services and Markets Act 2000 and applicable tax  legislation. 
One particular focus area was the risk of fraud through management override of controls. Our procedures to  respond to risks identified included the following: performing analytical procedures to identify any unusual or  unexpected relationships that may indicate risks of material misstatement due to fraud; reviewing the bank  statements of the Company for evidence of any large or unusual activity which may be indicative of fraud; enquiring of management in relation to any potential litigation and claims; and testing the appropriateness of  journal entries and other adjustments. 
Another focus area was non-compliance with the rules of the Financial Conduct Authority ('the FCA'). The Company was authorised and regulated by the FCA throughout the period. Our procedures to respond to risks identified included the following: reviewing correspondence between the Company and the FCA, performing analytical review to detect receipts of client money and remaining alert to the possibility of accidental receipt of client monies; and discussion of regulatory matters with the appointed officers of the Company. 
There are inherent limitations in our audit procedures described above. The more removed that laws and  regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.  Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations  to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if  any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 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 2006Our 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.




Richard Hinton (Senior statutory auditor)
for and on behalf of
Blick Rothenberg Audit LLP
Chartered Accountants &
Statutory Auditor
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
24 May 2024
Page 8

 

PARUS FINANCE (UK) LTD
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note

  

Turnover
 3 
6,464,067
9,330,855

Administrative expenses
  
(8,215,706)
(9,353,523)

Operating (loss)/profit
 4 
(1,751,639)
(22,668)

Profit on financial assets at fair value through profit and loss account
  
(127,195)
90,036

Interest receivable and similar income
  
20,733
6,428

Interest payable and similar charges
  
(861)
(8,446)

(Loss)/Profit before tax
  
(1,858,962)
65,350

Tax on profit
 7 
427,219
(446,447)

(Loss)/profit after tax
  
(1,431,743)
(381,097)

  

  

Retained earnings at the beginning of the year
  
25,851,553
34,232,650

  
25,851,553
34,232,650

(Loss)/profit for the year
  
(1,431,743)
(381,097)

Dividends declared and paid
  
(8,000,000)
(8,000,000)

Retained earnings at the end of the year
  
16,419,810
25,851,553
The notes on pages 13 to 23 form part of these financial statements.

Page 9


 
REGISTERED NUMBER:08260823
PARUS FINANCE (UK) LTD

BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2023
Note

Fixed assets
  

Tangible fixed assets
 8 
19,837
38,148

Investments
 9 
15,698,537
23,242,590

  
15,718,374
23,280,738

Current assets
  

Debtors: amounts falling due after more than one year
 10 
190,745
185,027

Debtors: amounts falling due within one year
 10 
774,879
3,494,968

Cash at bank and in hand
 11 
2,907,168
2,769,851

  
3,872,792
6,449,846

Creditors: amounts falling due within one year
 12 
(1,471,268)
(1,301,075)

Net current assets
  
 
 
2,401,524
 
 
5,148,771

Total assets less current liabilities
  
18,119,898
28,429,509

Provisions for liabilities
  

Deferred tax
 13 
(1,065,088)
(1,942,956)

  
 
 
(1,065,088)
 
 
(1,942,956)

Net assets
  
17,054,810
26,486,553


Capital and reserves
  

Called up share capital 
 14 
635,000
635,000

Profit and loss account
  
16,419,810
25,851,553

  
17,054,810
26,486,553


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 May 2024.




F Vecchioli
Director

The notes on pages 13 to 23 form part of these financial statements.

Page 10

 

PARUS FINANCE (UK) LTD

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity



At 1 February 2022
635,000
34,232,650
34,867,650



Loss for the year
-
(381,097)
(381,097)

Dividends: Equity capital
-
(8,000,000)
(8,000,000)



At 1 February 2023
635,000
25,851,553
26,486,553



Loss for the year
-
(1,431,743)
(1,431,743)

Dividends: Equity capital
-
(8,000,000)
(8,000,000)


At 31 January 2024
635,000
16,419,810
17,054,810


The notes on pages 13 to 23 form part of these financial statements.

Page 11

 

PARUS FINANCE (UK) LTD

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023

Cash flows from operating activities

(Loss)/profit for the financial year
(1,431,743)
(381,097)

Adjustments for:

Depreciation of tangible assets
21,018
27,528

Interest paid
861
8,446

Interest received
(20,733)
(6,428)

Taxation charge
(421,208)
446,447

Decrease in debtors
2,641,763
7,991,236

Decrease in amounts owed by groups
2,185
-

(Decrease) in creditors
(280,456)
(1,273,570)

Net fair value losses/(gains) recognised in P&L
127,195
(90,036)

Corporation tax received
64,695
-

Foreign exchange variance
(31,972)
(517,606)

Net cash generated from operating activities

671,605
6,204,920


Cash flows from investing activities

Purchase of tangible fixed assets
(2,989)
(35,416)

Sale of unlisted and other investments
7,416,857
1,894,953

Interest received
20,733
6,428

Foreign exchange variance
31,972
517,606

Net cash from investing activities

7,466,573
2,383,571

Cash flows from financing activities

Dividends paid
(8,000,000)
(8,000,000)

Interest paid
(861)
(2,326)

Net cash used in financing activities
(8,000,861)
(8,002,326)

Net increase in cash and cash equivalents
137,317
586,165

Cash and cash equivalents at beginning of year
2,769,851
2,183,686

Cash and cash equivalents at the end of year
2,907,168
2,769,851


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,907,168
2,769,851

2,907,168
2,769,851


Page 12

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

Parus Finance (UK) Ltd is a private limited company incorporated in England and Wales, registration number 08260823. The registered office is 100 Pall Mall, London, SW1Y 5NQ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The directors do not consider there are any key accounting estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company has a satisfactory capital position and as a consequence the directors believe that the Company is well placed to manage its business risks successfully. The directors have considered the operating profits and cash flows for the twelve month period from the date of signing these accounts and based on this have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they have adopted the going concern basis in preparing the financial statements. 

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Euros.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.4

Revenue

Turnover comprises revenue recognised by the Company in respect of investment management services supplied during the year, exclusive of value added tax. Management fees are recognised over the period which management services are provided. Performance fees which are based on the investment performance achieved for certain client portfolios are recognised as revenue at the end of the period over which the performance is measured. 

Page 13

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
over the term of the lease
Office equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.7

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Page 14

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

  
2.8

Financial Instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 
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.
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 
Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
 
Page 15

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 16

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

  
2.11

Related party transactions

As a wholly owned subsidiary the company is exempt under Section 33 of FRS 102 from the  requirement to disclose transactions with its parent and other wholly owned subsidiaries of the Parus Finance Holding Limited group


3.


Turnover

The whole of the turnover is attributable to management and performance fees.

All turnover arose within the United Kingdom.


4.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2023

Depreciaion of tangible fixed assets
21,018
27,528

Exchange differences
(31,972)
(610,120)

Operating lease rentals - land and buildings
392,295
383,776

Fees payable to the Company's auditors for the audit of the Company's annual financial statements
21,042
16,217

Fees payable to the Company's auditors for other services:
- Taxation compliance services
3,496
3,426

- Other non-audit services
42,953
38,645


5.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023

Wages and salaries
4,643,170
5,252,038

Social security costs
527,656
722,689

Cost of defined contribution scheme
40,875
40,215

5,211,701
6,014,942


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







11
10

Page 17

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

6.


Directors' remuneration

2024
2023

Directors' emoluments
1,574,521
1,859,845

Company contributions to defined contribution pension schemes
8,140
8,295

1,582,661
1,868,140


During the year retirement benefits were accruing to 2 directors (2023 - NIL) in respect of defined contribution pension schemes.
The highest paid director received remuneration of €668,800 (2023 - €933,077).  
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to €4,070 (2022 - €4,147). 

Page 18

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

7.


Taxation


2024
2023

Corporation tax


Current tax on profits for the year
414,077
153,587

Adjustments in respect of previous periods
36,572
-


Deferred tax


Origination and reversal of timing differences
(877,868)
292,860


Taxation on (loss)/profit on ordinary activities
(427,219)
446,447

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023


(Loss)/Profit on ordinary activities before tax
(1,858,962)
65,350


(Loss)/Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24% (2023 - 19%)
(448,798)
12,417

Effects of:


Expenses not deductible for tax purposes
2,644
3,943

Adjustments to tax charge in respect of prior periods
(36,572)
-

Other timing differences leading to an increase (decrease) in taxation
55,507
466,726

Other differences leading to an increase (decrease) in the tax charge
-
(36,639)

Total tax charge for the year
(427,219)
446,447

Page 19

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

8.


Tangible fixed assets





Fixtures and fittings
Office equipment
Total




Cost or valuation


At 1 February 2023
472,418
232,582
705,000


Additions
-
2,989
2,989


Disposals
-
(106,188)
(106,188)



At 31 January 2024

472,418
129,383
601,801



Depreciation


At 1 February 2023
472,418
194,434
666,852


Charge for the year on owned assets
-
21,018
21,018


Disposals
-
(105,906)
(105,906)



At 31 January 2024

472,418
109,546
581,964



Net book value



At 31 January 2024
-
19,837
19,837



At 31 January 2023
-
38,148
38,148


9.


Fixed asset investments





Unlisted investments




Cost or valuation


At 1 February 2023
23,242,590


Disposals
(7,416,857)


Revaluations
(127,196)



At 31 January 2024
15,698,537




Page 20

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

10.


Debtors

2024
2023

Due after more than one year

Other debtors
190,745
185,027


2024
2023

Due within one year

Amounts owed by group undertakings
2,941
5,126

Other debtors
47,202
128,522

Prepayments and accrued income
724,736
3,361,320

774,879
3,494,968



11.


Cash and cash equivalents

2024
2023

Cash at bank and in hand
2,907,168
2,769,851


€23,763 (2023 - €70,417) of the Company's cash at bank is not available for use by the Company. This relates to cash held in a separate bank account for the purpose of satisfying future liabilities of a third party. An equivalent balance is included in accruals and deferred income in respect of this amount.


12.


Creditors: Amounts falling due within one year

2024
2023

Trade creditors
7,670
32,739

Corporation tax
450,649
-

Other taxation and social security
185,841
184,641

Other creditors
4,331
16,452

Accruals and deferred income
822,777
1,067,243

1,471,268
1,301,075


Page 21

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

13.


Deferred taxation




2024








At beginning of year
1,942,956


Charged to profit or loss
(877,868)



At end of year
1,065,088

The provision for deferred taxation is made up as follows:

2024
2023


Timing difference on revaluation
1,065,088
1,942,956


14.


Share capital

2024
2023
Allotted, called up and fully paid



635,000 (2023 - 635,000) Ordinary shares of 1.00 each
635,000
635,000


15.


Analysis of net debt




At 1 February 2023
Cash flows
At 31 January 2024



Cash at bank and in hand

2,769,851

137,317

2,907,168


2,769,851
137,317
2,907,168

Page 22

 

PARUS FINANCE (UK) LTD

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

16.


Commitments under operating leases

At 31 January 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023


Not later than 1 year
94,981
308,876

Later than 1 year and not later than 5 years
-
92,240

94,981
401,116


17.


Controlling party

The Company's immediate and ultimate parent undertaking is Parus Finance Holding Limited, a company incorporated in Ireland. 

Page 23