Registered number:
FOR THE PERIOD ENDED 31 OCTOBER 2023
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2023
The directors present their report and financial statements for the period ended 31 October 2023.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
The principal activity of the Group remains that of provider of model portfolio management and ancillary services.
The Board of Directors, after a thorough review, offered shareholders the opportunity to sell shares to the fast growing independent financial advisory group, Amber River Group Limited.. The deal was concluded to sell a majority shareholding to Amber River, with senior existing shareholders retaining the balance. Amber River retains an option to acquire the balance in two years’ time. This deal allows TAM to become an operating part of the Group’s central investment proposition (along with other market participants). Although TAM will need to earn asset flows from Amber River on merit, as a robust competitor, the cautious and low-volatility nature of TAM’s service offering gives the directors confidence that this provides a strong base for expansion. The financial year was amended to a 10-month period, ending October 2023, in recognition of the timing of this change in majority ownership. As a result, the revenue, gross profit and operating numbers detailed below reflect only 10 months of the calendar year. On a business front the rise in interest rates and subsequent impact on the global economy we would have anticipated to have created a deleterious effect on operating conditions. With continued troubles in the Ukraine and a poor economic and interest rate environment the effects were felt through the accounting period. Against this negative backdrop markets were depressed and did not pick up until post this Balance sheet date. Nonetheless TAM achieved an increase in its assets under management (AuM) compared with 2022 of some 12% - reaching a total of £605mn (2022 - £540mn) – thanks in large part to a continued drive for “Value for Money” pricing and a steady investment performance profile. In the period Consumer Duty obligations were an additional consumption of time but having begun the process early in the year TAM has been in a position to fulfil its requirements. Steady progress in growing AuM - against the market trend - combined with the unfolding of our longer-term plans and relationship with the Amber River Group is laying the foundations for enhanced growth in the years ahead. At the time of writing TAM has further increased its asset growth to just over £1bn (+40%) supported also by market gains post October 2023. As in recent years the industry continues to feel ongoing pricing pressure on the services it provides to its clients. TAM took the initiative back in 2021 to cut its annual management charges and has continued to work tirelessly on the underlying ‘overall cost figure’ (OCF) to clients. This remains possibly more valid today than in 2022. We remain, even in the current environment, in the forefront on price amongst our competitors and continue to look at ways of reducing the cost of the services we provide to our clients. We reiterate that this is not, of course, a race to the bottom. We pride ourselves on the fact that our drive to achieve enhanced value for our clients has had no detriment on our operational efficiency, investment performance or indeed on any aspect of our customer service and as confirmation of this, we would highlight our performance in the prestigious sector-wide independent survey published by Defaqto in February 2023. In financial markets, investment returns were flat to October 2023 but positive for all clients for calendar year 2023. The year was punctuated with periods of significant volatility which has begun to quieten towards year end. The rise of markets and performance was driven by a narrow subset of high tech US stocks causing dislocation in investment return for many managers. TAM client investment performance is good against peers but continues to struggle against broad benchmarks given the narrow growth market prevailing. TAM Group investment entities retained an active approach to investment management throughout 2023, providing portfolios with some defensive attributes at times of crisis and elements of protection in portfolios where required. The market challenge of 2023/2024 is already proving to pre-empt when the current high inflation/high-interest rate environment subsides and its impact on Bond and Equity Markets. However, as we have said many times before, difficult markets are conditions in which we believe TAM will thrive. Our plans for 2024 and beyond continue to include the ongoing development of our UK distribution capability and deals are progressing to add assets to the TAM UK portfolios. We are intending to make significant strides in the UK Platform market which is already beginning to bear fruit as we grow materially in this area. There continue to be significant consumer related changes in the UK regulatory landscape and with the most
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
significant protection for clients evident in the Consumer Duty initiatives from the FCA which we see as a radical rethink for UK investment firms of their duty of care with a focus on customer outcomes and the avoidance of foreseeable harm to clients. TAM continues to drive and review its position and review. We are confident in the progress made and we reiterate our firmly held belief that a strong compliance culture is paramount.
The Group continues to make a concerted effort to increase efficiency and we have focused on providing services specifically to quality distributors. As a result, the number of model portfolio client accounts has increased in line with assets under management (AuM). At the same time, auto-enrolment clients and AuM continue to grow. The group’s investment philosophy remains unaltered other than platform development aspirations and executive management’s energies remain focused on business development both inside the group and external. The directors continue to feel that post acquisition the group is in a solid financial position. It retains its profitability and cash flow positive attributes. Its present product offerings after review continue to be fit for purpose in current market conditions and its historic diversification into ESG and Sharia investment management provide significant niches where we can demonstrate long-term performance against market competition. The directors are confident that the group’s business model is such that the business can continue to achieve long-term growth, and this is being ably supported by new shareholders with significant distribution power. We are comfortable with the robust performance in the past year - a difficult operating environment. The group having reset its position post-acquisition can achieve its plans with current cash flow and retained earnings. The group remains cash generative and is anticipating increased profits again in 2024 notwithstanding the operating environment. The key performance indicators below in 2023 reflect. a) only the 10-month period v’s 12 months in 2022 b) a negative net operating profit and loss account as a completion balance sheet adjusted at acquisition to support shareholder sale enhancements and retention of core staff. c) The removal of “members managed” in workplace pensions as product amendment to a unitised rather than member-based version does not allow for data availability. d) Expansion of IFA’s and accounts represents TAM efforts in the Platform market and new interactions
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
Market/business risk: being the risk that markets collapse or that the company’s investment management performance is consistently poor – resulting in a decline in revenues and loss of profitability. The company has an experienced investment management team with many years accumulated experience at managing client investments and navigating difficult markets. Appropriate systems and controls are in place and performance against benchmarks is constantly monitored.
Concentration risk: being the risk attributable to dealing with limited distribution lines. The company’s highest exposure to a single professional introducer equates to approximately 21% of assets under management. All other exposures to single distributors are substantially lower. The company’s strategy is to provide a ‘best in class’ level of service and client satisfaction is carefully monitored. The directors continue to work to diversify distributor concentration and are confident that as assets under management grow this risk will gradually reduce. Credit risk: being the risk that the group suffers a financial loss when a counterparty in a trading transaction does not meet its obligations. This risk has been effectively removed by the company’s Model B clearing structure. Liquidity risk: being the risk that the group cannot meet its financial obligations as they fall due. The risk is managed by monitoring cash balances and forecast cash flows and maintaining capital and liquidity resources comfortably more than regulatory requirements. This risk is significantly mitigated by the group’s business model and the regular revenue flows arising from client portfolios under management and held with custodian and administrator Pershing Securities Limited.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
Section 172 Statement
We, as Directors of the Company, acknowledge our responsibilities as set out in section 172(1) of the Companies Act 2006 ('Section 172'). Section 172 requires us, in good faith, to promote the success of the company for the benefit of its members as a whole, and in doing so to have regard (amongst other matters) to: •The likely consequences of any decision in the long term. •The interests of the Company's employees. •The need to foster the Company's business relationships with suppliers, customers, and all other external and internal stakeholders. •The impact of the Company's operations on the wider community and the environment. •The necessity of the Company to maintain a reputation for high standards of business conduct at all times. •The requirement to act fairly with, and between, owners of the Company. We set out below how we believe we are fulfilling our responsibilities under Section 172. The likely consequences of any decision in the long term The strategic management of the Company is the responsibility of its Board of Directors. Our Board consists of both the Company’s senior executive management and two independent non-executive directors. All strategic decision making considers the long-term impact on the success of the Company’s business and thence on its members. As a company that operates in a regulated sector which is responsible for managing money for clients TAM has in place a robust Risk Management Framework which, in relation to the Board’s decision making, assesses the risk and potential to cause harm. The Risk Management Framework and associated Risk Appetite Statement are integrated into the Company’s decision making processes. The interests of the company's employees We strive to create a workplace with fair and compliant employment practices. We encourage employees to improve their skills and develop their careers through training and on the job experience. We are committed to complying with all applicable labour and employment laws in all areas of our business. We believe people should be able to earn a living wage through freely chosen work, and we believe a happy and successful work force is likely to be diverse and to be operating in a work environment that is safe, healthy, and fulfilling. Key Initiatives: • Equal Employment Opportunities: We are committed to the principles of equal employment and complying with Equal Employment Opportunities (EEO) legislation. • Remuneration Policy: Our remuneration policy is designed to attract, retain, reward, and motivate all our staff. Remuneration packages are aligned with the market so as to be fair and competitive and to take account of current macro-economic conditions. • Safe and Healthy Workplace: We value the safety of our employees and provide a safe and healthy workplace for them, compliant with applicable safety and health laws, regulations, and policies. The need to foster the group's business relationships with suppliers, customers, and others Our clients are at the heart of everything we do and our relationship with them is vital. As a regulated firm we are required to treat our clients fairly and this obligation is embedded in our processes and procedures. Recent initiatives include our successful efforts to improve the value of our investment proposition. We endeavour to build positive and constructive business relationships with all our service providers as we believe this is an important component in ensuring we deliver the right outcomes for our key stakeholders.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
The impact of the company's operations on the community and the environment
The impact of our operations on the community and the environment is very important. We have made a commitment to make our business carbon neutral and have provided our clients with an easy to use service that allows them to do the same. We are also very aware of the need for successful businesses to contribute to society and give something back and our unique You Give We Give program allows clients to gift aid a share of the investment profits they make with TAM to a charity of their choice. TAM will match this by donating the same share of their fees to the same charity, whilst also extending the opportunity to match the donation to the client’s financial adviser. We have raised over £296,000 for a range of charities in this way. In the office, we promote waste reduction and we purchase, as far as possible, sustainable and recyclable supplies. We also make every effort to separate waste into recyclables such as bottles, plastics and paper and other waste which cannot be recycled. We are members of the UK Sustainable Investment and Finance Association, a collaborative association assisting firms with their projects to be environmentally sustainable businesses and to promote the transition to a decarbonised economy. The desirability of the company maintaining a reputation for high standards of business conduct and the requirement to act fairly with, and between, owners of the Company Maintaining its good reputation is vital for the Company. The business is run in a way that is designed to ensure that its good reputation is retained. This drives how we treat our clients and how we treat our staff. Well trained and motivated staff are the most likely to provide the high-quality service that TAM’s clients expect. Our core values are the foundations of our business and our desire to be best in class. We reflect on our performance in industry sector surveys as an indicator of whether we are succeeding in maintaining a high reputation and meeting those core values. In the same way TAM’s management team deals with the Company’s members in an open, fair and transparent manner.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2023
The directors present their report and the financial statements for the period ended 31 October 2023.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the period, after taxation and minority interests, amounted to £1,217,587 (2022 - profit £254,841).
The Company has paid a dividend amounting £325,000 (2022: £nil) for the financial year.
The directors who served during the period were:
The company is now integrated into the Amber River Group, a major consolidator within the UK financial wealth sector. As such, its models are now available to a large pool of Amber River clients through their Independent Financial Advisors and significant growth in Assets Under Management is anticipated in the coming months.
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DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
The Board is responsible for establishing and overseeing the company’s values, strategy and purpose, all of which centre around the interests of key stakeholders and other factors as set out in the Section 172 report during the period.
The directors are conscious that their decisions and actions have an impact on stakeholder, including employees, customers, suppliers, communities and investors and they have regard to stakeholder considerations and other factors as set out in Section 172 during the period. Regular engagement with stakeholders, both directly and indirectly has continued to be an important focus for the board and had ensured that the directors are aware of and have effective regards to the matters set out in Section 172. The board has ensured that stakeholder considerations were taken into account in the board’s deliberations and decision-making. Whilst the board acknowledges that, sometimes, it may have to take decisions that affect one or more stakeholder groups differently, it seeks to treat impacted groups fairly and with regards to its duty to act in a way that it considers would be most likely to promote the success of the company to the benefit of its members as a whole, having regard to the balance of factors set out in the Section 172 report.
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the period is 40,000kWh or lower.
On 7 February 2023 the shareholders entered into an agreement to sell 65% of the issued share capital of TAM Financial Limited to Amber River Group Limited. This agreement was confirmed on the 3rd November 2023 with an effective date of the 31st October 2023 following regulatory approval from the Financial Conduct Authority
The auditors, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TAM FINANCIAL LIMITED
We have audited the financial statements of TAM Financial Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 October 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, 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).
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 Group 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TAM FINANCIAL LIMITED (CONTINUED)
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 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TAM FINANCIAL LIMITED (CONTINUED)
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 Group 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:
• Enquiry of management and those charged with governance around actual and potential litigation and claims; • Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Group is subject to many other laws and regulations where the consequence of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the FCA registration for a company within the group. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. 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.
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 Auditors' report.
The financial statements are prepared for 10 months period ending 31st October 2023. Comparatives are for 12 months period to 31st December 2022. Consequently, comparative amounts for the Income Statement and the related notes are not entirely comparable.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TAM FINANCIAL LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
8th Floor
Becket House
36 Old Jewry
EC2R 8DD
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 OCTOBER 2023
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 October 2024.
The notes on pages 24 to 45 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 24 to 45 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2023
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2023
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 OCTOBER 2023
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 OCTOBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
TAM Financial Ltd. is a private company limited by shares incorporated in England and Wales, United Kingdom. The address of the registered company is given on the Company Information page of these financial statements.
The principal activity of the company is as the holding company of the TAM Group. The Group’s principal activity is provider of discretionary investment management and ancillary services. Assets in that activity are raised through professional advisers and other intermediaries and a direct to market product offering.
2.Accounting policies
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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Total revenue comprises commissions, fees, dividend income and other charges derived from asset management.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
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:
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investment in ordinary shares.
Debt instruments (other than those wholly repayable or recivable within one year), including loans and other amounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term intrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate of interest for a similar debt instrument and subsequently at amoritised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. Financial assets that are measured at cost and amoritised 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 Consolidated statement of comprehensive income.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Consolidated statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of financial position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
Upon exercise of share options, the proceeds received net of attributable transaction costs are credited to share capital and where appropriate share premium account.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the statement of comprehensive income in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
IDuring the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £38,340 (2022 - £171,458). The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,299 (2022 - £8,349).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
12.Taxation (continued)
The Group has UK trading losses carried forward of £327,794 (2022: £60,882).
At the end of the 10 month period ended 31 October the Group has a UK deferred tax asset of £547,718 (2022: £149,731) which has not been provided for in these financial statements in accordance with the accounting policy noted above. Factors that may affect future tax charges There were no factors that may affect future tax charges.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the period/year was £
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
14.Intangible assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
Subsidiary undertakings (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
Share premium account
Capital redemption reserve
Profit and loss account
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £86,987 (2022: £77,416). Contributions totalling £8,741 (2022: £3,939) were payable to the fund at the reporting date.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
TAM Financial Limited is the largest and smallest group for which group accounts are prepared.
The group is controlled by its shareholders.
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