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Registered number: 07824589









AVALON CAPITAL PARTNERS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

 
AVALON CAPITAL PARTNERS LIMITED
 
 
COMPANY INFORMATION


Directors
J Y M Aknin 
S G E Langford 




Registered number
07824589



Registered office
35 Ballards Lane

London

N3 1XW




Independent auditors
BKL Audit LLP
Chartered Accountants & Statutory Auditor

35 Ballards Lane

London

N3 1XW





 
AVALON CAPITAL PARTNERS LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 8
Statement of Income and Retained Earnings
 
 
9
Statement of Financial Position
 
 
10
Statement of Cash Flows
 
 
11
Notes to the Financial Statements
 
 
12 - 21


 
AVALON CAPITAL PARTNERS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

Introduction
 
The principal activity of Avalon Capital Partners Limited (“ACPL”) is an agency and matched principal broker, facilitating transactions in cash equity products for an institutional client base.  
ACPL is authorised and regulated by the Financial Conduct Authority (“FCA”), reference number 769800.

Business review
 
The directors have undertaken a comprehensive review of all ACPL financial and business metrics and are satisfied with the performance for the financial year end to 31 July 2023. A complete assessment thereof is contained in this set of financial statements.

Principal risks and uncertainties
 
The principal risks facing ACPL are:
- Competition from other brokerage and financial services firms
- The lack of highly skilled brokers to assist in the continued growth and development of ACPL
- The continued market requirement to invest in trading technology and infrastructure
The above can restrict ACPL in securing and maintaining market share in often difficult trading conditions.
The company also faces credit, interest rate, liquidity, foreign exchange, operational, capital and regulatory environment risk in the normal course of business. As ACPL transacts on an agency or matched principal basis, its exposure to credit and market risk is limited.
The above risks are mitigated by having stringent internal controls, including detailed monitoring of client executions, daily revenue reporting and stringent and timely reconciliation processes with clearing firms.

Financial key performance indicators
 
The key financial indicators are turnover of £5,336,564 and net profit before tax of £616,800. The board considers that these are in line with expectations.

Other key performance indicator
 
ACPL’s long term strategy and core objectives dictate the key performance indicators (“KPIs”) that senior management and the board monitor, target and measure. These KPIs fulfil two roles:
1) To give senior management a framework to evaluate the overall performance of the company.
2) To provide senior management with clear guidelines and focus on areas which are critical to the success and growth of ACPL.

Page 1

 
AVALON CAPITAL PARTNERS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Directors' statement of compliance with duty to promote the success of the Company
 
The Directors of the Company are aware of their requirement to act in the best interests of the following related stakeholders:
Shareholders
The Directors have regular contact with the shareholder in order to maximise the Company's long-term growth prospects and the opportunity for a dividend stream.
Customers
The Company's customer base is purely institutional clients. The Director prioritises compliance with the FCA, whilst ensuring each client's best interests are served in accordance with their risk appetite.
Suppliers
The company has various key supplier relationships which it maintains to ensure the smooth running of the business.
Community and the environment
The Company actively seeks to reduce its carbon footprint by virtue of its entirely online and paperless business.
The Directors also encourage regular attendance at industry related networking events in order to build and maintain strong relationships.
MIFIDPRU 8 disclosure
The FCA requires disclosure of specified information about underlying risk management controls and capital position of regulated firms ("MIFIDPRU 8 Disclosure"). These disclosures are available online along with the remuneration disclosure at: www.avaloncp.com.


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







S G E Langford
Director

Date: 21 November 2023

Page 2

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report and the audited  financial statements for the year ended 31 July 2023.

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 judgements 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.

Results and dividends

The profit for the year, after taxation, amounted to £482,793 (2022 - £764,424).

Dividends were paid in the year to the directors amounting to £300,000 (2022 £Nil)

Directors

The directors who served during the year were:

J Y M Aknin 
S G E Langford 

Future developments

The directors are confident that market conditions will continue to favour the business model of the company.

Page 3

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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






S G E Langford
Director

Date: 21 November 2023

Page 4

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON CAPITAL PARTNERS LIMITED
 

Opinion


We have audited the financial statements of Avalon Capital Partners Limited (the 'Company') for the year ended 31 July 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows 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 July 2023 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 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.


Page 5

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON CAPITAL PARTNERS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


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 3, 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.


Page 6

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON CAPITAL PARTNERS LIMITED (CONTINUED)


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 an Auditors' 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:
 
Enquiring of management around actual and potential litigation and claims;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
      with applicable laws and regulations;
Performing audit work over the risks of management override of controls, including testing of journal entries
      and other adjustments for appropriateness, evaluating business rationale of significant transactions outside
      the normal course of business and reviewing accounting estimates for bias, and
Enquiring of company staff in finance and compliance functions to identify any instances of non-compliance
      with laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
 
Page 7

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON CAPITAL PARTNERS LIMITED (CONTINUED)


Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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 Auditors' 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 Landau FCA (Senior Statutory Auditor)
  
for and on behalf of
BKL Audit LLP
 
Chartered Accountants
Statutory Auditor
  
London

 
Date: 
21 November 2023
Page 8

 
AVALON CAPITAL PARTNERS LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
Note
£
£

  

Turnover
 4 
5,336,564
6,640,508

Cost of sales
  
(3,424,177)
(3,486,416)

Gross profit
  
1,912,387
3,154,092

Administrative expenses
  
(1,615,676)
(2,286,730)

Other operating income
 5 
320,089
75,206

Operating profit
 6 
616,800
942,568

Tax on profit
 10 
(134,007)
(178,144)

Profit after tax
  
482,793
764,424

  

  

Retained earnings at the beginning of the year
  
3,854,668
3,090,244

  
3,854,668
3,090,244

Profit for the year
  
482,793
764,424

Dividends declared and paid
  
(300,000)
-

Retained earnings at the end of the year
  
4,037,461
3,854,668
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 12 to 21 form part of these financial statements.

Page 9

 
AVALON CAPITAL PARTNERS LIMITED
REGISTERED NUMBER: 07824589

STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2023

2023
2022
Note
£
£

  

Current assets
  

Debtors: amounts falling due after more than one year
 11 
45,175
-

Debtors: amounts falling due within one year
 11 
4,797,691
4,918,266

Cash at bank and in hand
  
197,365
150,112

  
5,040,231
5,068,378

Creditors: amounts falling due within one year
 12 
(902,770)
(1,113,710)

Net current assets
  
 
 
4,137,461
 
 
3,954,668

Total assets less current liabilities
  
4,137,461
3,954,668

  

Net assets
  
4,137,461
3,954,668


Capital and reserves
  

Called up share capital 
 13 
100,000
100,000

Profit and loss account
 14 
4,037,461
3,854,668

  
4,137,461
3,954,668


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 






S G E Langford
Director

Date: 21 November 2023

The notes on pages 12 to 21 form part of these financial statements.

Page 10

 
AVALON CAPITAL PARTNERS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
482,793
764,424

Adjustments for:

Taxation charge
134,007
178,144

Decrease in debtors
67,254
44,234

Decrease/(increase) in amounts owed by groups
8,146
(1,206,746)

(Decrease)/increase in creditors
(165,223)
384,494

Increase in amounts owed to groups
22,263
15,774

Corporation tax (paid)
(201,987)
(245,225)

Net cash generated from operating activities

347,253
(64,901)



Cash flows from financing activities

Dividends paid
(300,000)
-

Net cash used in financing activities
(300,000)
-

Net increase/(decrease) in cash and cash equivalents
47,253
(64,901)

Cash and cash equivalents at beginning of year
150,112
215,013

Cash and cash equivalents at the end of year
197,365
150,112


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
197,365
150,112

197,365
150,112


The notes on pages 12 to 21 form part of these financial statements.

Page 11

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1.


General information

The principal activity of Avalon Capital Partners Ltd ("the Company") is an agency and matched principal broker, facilitating transactions in cash equity products for an institutional client base.  
The Company is a private company limited by shares and is incorporated in England and Wales. 
The principal place of business is 5th Floor, 23 - 35 Moray House, Great Titchfield Street, London, W1W 7PA.
 

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 ("FRS 102") 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 judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration revieved or receivable, excluding discounts, rebates, value added tax and other sales taxes.  

Turnover comprises revenue recognised by the Company in respect of brokerage commissions earned for services provided and market research services. 
Commissions are recognised at the time the relevant trade is executed. 
Market research service income is recognised when the service is provided.  

Page 12

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.4

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.5

Financial instruments

The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
(i) Financial assets
Basic financial assets, including trade and other debtors, and, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.
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) 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.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
 
Page 13

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)


2.5
Financial instruments (continued)

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.6

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Sterling.

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.

 
2.7

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.8

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to Statement of Income and Retained Earnings 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.

 
2.9

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 the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.10

Taxation

Tax is recognised in Statement of Income and Retained Earnings 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 reporting 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 reporting 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 reporting date.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

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 Statement of Financial Position 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.
The only key judgement (apart from those involving estimates) related to the management recharge from Avalon Capital Markets Limited, a company under common ownership. The directors have estimated the market value of the services provided based on an allocation of overheads.
There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 15

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Brokerage income
5,336,564
6,640,508

5,336,564
6,640,508


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
320,089
75,206

320,089
75,206



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
4,939
(17,425)

Other operating lease rentals
216,292
173,576


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates in respect of:

Fees payable to the Company's auditor for the audit of the Company's annual financial statements
16,000
13,750

All other services
4,770
11,720

Page 16

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
860,489
759,991

Social security costs
128,680
113,521

Cost of defined contribution scheme
11,834
12,059

1,001,003
885,571


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


        2023
        2022
            No.
            No.







Staff
11
10



Directors
2
2

13
12


9.


Directors' remuneration

None of the directors were remunerated by the Company during the period.  All directors were remunerated by other group undertakings. 





10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
134,007
189,776

Adjustments in respect of previous periods
-
(11,632)


134,007
178,144


Total current tax
134,007
178,144
Page 17

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 21% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
616,800
942,568


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 21% (2022 - 19%)
129,528
179,088

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
4,479
10,183

Adjustments to tax charge in respect of prior periods
-
(11,632)

Other differences leading to an increase (decrease) in the tax charge
-
505

Total tax charge for the year
134,007
178,144



There were no factors that may affect future tax charges.

.

Page 18

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

11.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
45,175
-

45,175
-


2023
2022
£
£

Due within one year

Trade debtors
294,215
331,563

Amounts owed by group undertakings
4,239,345
4,247,491

Other debtors
157,400
124,662

Prepayments and accrued income
106,731
214,550

4,797,691
4,918,266


Amounts owed by group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand. 


12.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
151,289
224,558

Amounts owed to group undertakings
38,037
15,774

Corporation tax
94,005
161,985

Other taxation and social security
42,805
63,077

Other creditors
3,339
3,513

Accruals and deferred income
573,295
644,803

902,770
1,113,710


Amounts owed to group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand. 

Page 19

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

13.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100,000 (2022 - 100,000) Ordinary shares of £1.00 each
100,000
100,000



14.


Reserves

Profit and loss account

Comprises all current period profits and losses. 


15.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted £11,834 (2022: £12,059) . Contributions totalling £3,339 (2022: £3,513) were payable to the fund at the reporting date and are included in creditors.


16.


Commitments under operating leases

At 31 July 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
246,204
158,611

Later than 1 year and not later than 5 years
964,298
-

1,210,502
158,611


17.


Related party transactions

Included within other debtors is a balance of £147,853 (2022: £115,912) owed from a company controlled by the shareholders of the group. 
Included within other operating income are amounts of £189,249 (2022: £75,206) received from a company controlled by the shareholders of the group.
Where possible company has taken advantage of the exemption within s33.1A of FRS 102 not to disclose related party transactions with other wholly owned group undertakings.
Page 20

 
AVALON CAPITAL PARTNERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

18.


Controlling party

The ultimate parent undertaking is Noam Holdings (Jersey) Limited, a company incorporated in Jersey.
The ultimate controlling party is J Y M Aknin.

 
Page 21