Company Registration No. SC231678 (Scotland)
CS Managers Ltd
Annual report and financial statements
for the year ended 31 March 2024
CS Managers Ltd
Company information
Directors
Andrew Campbell
William Forsyth
Linda Forsyth
Hugh Rutherford
Secretary
Linda Forsyth
Company number
SC231678
Registered office
43 Charlotte Square
Edinburgh
EH2 4HQ
Independent auditor
Saffery LLP
Edinburgh Quay
133 Fountainbridge
Edinburgh
EH3 9BA
Business address
43 Charlotte Square
Edinburgh
EH2 4HQ
Bankers
Handelsbanken
18 Charlotte Square
Edinburgh
EH2 4DF
Hampden & Co
9 Charlotte Square
Edinburgh
EH2 4DR
CS Managers Ltd
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
CS Managers Ltd
Strategic report
For the year ended 31 March 2024
1

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

CS Managers Ltd is a UK company regulated by the Financial Conduct Authority (“FCA”) providing discretionary investment management and advice services to a range of clients including private client, charity, corporate and pension funds.

 

The company is committed to growing its client base by broadening its service proposition and developing further client and professional intermediary relationships. This has increased its cost base in the period as a result of the additional recruitment of people with the experience and skill to lead its development in line with the company’s longer-term strategy.

 

The company's strategic aims are primarily measured by the growth in the assets under its management, its turnover and profit before tax, net asset value and the investment returns over the long term it generates for its stakeholders.

 

The directors are responsible for the overall stewardship of the company. The company’s performance for the year is set out in the Profit and Loss account on page 9. Although the results are behind expectations, the directors are satisfied with the overall performance of the business in a challenging year.

 

Principal risks and uncertainties
The company has identified and assessed the key risks to the business as set out below. Given the size of the company and its business model, which is not complex, it considers these risks to be modest and appropriately managed or mitigated.

Client risk
Our clients are a valued asset of the Company, which monitors the quality of client engagement and service quality on a regular basis to ensure the highest possible standards are maintained. The focus is on performance and diversification of the potential investment risks through the quality of its research and sound asset allocation decisions, designed to align with clients' interests and risk profile.

Concentration risk
We also recognise the value all our employees bring to the business and so we manage the risk of loss of key individuals through our remuneration policies and insurance cover.  The risk of over dependence on particular sources of business is mitigated through the width of the Company's  marketing strategies and service offerings.

Operational risk
The company's risk management monitoring  framework is designed to identify potential sources of error arising from its operations and strengthen, as necessary, its internal systems and processes, supervisory and oversight functions in order to minimise residual risk exposure.

Market risk
Adverse movements in global markets may negatively affect the level of fees based on the value of client assets under management. This is mitigated by the strength of our investment proposition that seeks to protect assets from market volatility. The company also maintains a robust liquidity risk management framework and the retention of appropriate capital resources, which are determined by rigorous stress testing and scenario analysis.
Regulation
The company's risk monitoring framework is designed to minimise the risk of breaches occurring, which could affect its reputation and regulatory standing. The company maintains professional indemnity cover to mitigate the risk. The disclosures of the company made in order to comply with the UK Financial Conduct Authority (FCA) MIFIDPRU sourcebook, as applied to all MIFID investment firms, including those in relation to remuneration are available to view on our website www.csmanagers.com.
CS Managers Ltd
Strategic report (continued)
For the year ended 31 March 2024
2
Financial Position of the company at 31 March 2024
Having generated a profit after tax for the year of £54,552 (2023: £84,795), the company had net assets amounting to £1,541,087 (2023: £1,494,054) at 31 March 2024 and a strong cash position. The directors are satisfied with the financial position of the company at the year end and expect sound financial performance in the future.
Key Perfomance Indicators

The company's activities are not complex in nature. The directors measure performance from a combination of factors including good client outcomes; a growth in assets under management by value and in portfolios by number; net business gained or lost; increase in Balance Sheet value; comparative profitability.

By order of the board

Linda Forsyth
Secretary
19 July 2024
CS Managers Ltd
Directors' report
For the year ended 31 March 2024
3
The directors present their report and financial statements for the year ended 31 March 2024.
Principal activities

The principal activity of the company is providing discretionary investment management and advice services.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £7,519. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Andrew Campbell
William Forsyth
Linda Forsyth
Hugh Rutherford
Auditor

Saffery LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

CS Managers Ltd
Directors' report (continued)
For the year ended 31 March 2024
4
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
By order of the board
Linda Forsyth
Secretary
19 July 2024
CS Managers Ltd
Independent auditor's report
To the members of CS Managers Ltd
5
Opinion

We have audited the financial statements of CS Managers Ltd (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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.

CS Managers Ltd
Independent auditor's report (continued)
To the members of CS Managers Ltd
6

Opinions on other matters prescribed by the Companies Act 2006

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

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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:

 

Responsibilities of directors

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

CS Managers Ltd
Independent auditor's report (continued)
To the members of CS Managers Ltd
7

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006, UK Tax legislation and The Financial Services and Markets Act 2000, on which The Financial Conduct Authority (FCA) Handbook is based.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

The company is regulated by the FCA. We discussed the company’s authorisation and permitted activities with the SMF16 and obtained evidence of this from the FCA register. We obtained additional evidence about compliance by discussing any breaches with the SMF16 and SMF17 and reviewing correspondence with the FCA.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CS Managers Ltd
Independent auditor's report (continued)
To the members of CS Managers Ltd
8

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Kenneth McDowell
Senior Statutory Auditor
For and on behalf of Saffery LLP
19 July 2024
Chartered Accountants
Statutory Auditors
Edinburgh Quay
133 Fountainbridge
Edinburgh
EH3 9BA
CS Managers Ltd
Statement of comprehensive income
For the year ended 31 March 2024
9
2024
2023
Notes
£
£
Turnover
3
1,475,348
1,590,857
Administrative expenses
(1,434,504)
(1,474,095)
Operating profit
4
40,844
116,762
Interest receivable and similar income
7
24,147
10,252
Other gains and losses
8
5,969
(12,604)
Profit before taxation
70,960
114,410
Tax on profit
9
(16,408)
(29,615)
Profit for the financial year
54,552
84,795

The income statement has been prepared on the basis that all operations are continuing operations.

CS Managers Ltd
Statement of financial position
As at 31 March 2024
31 March 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,725
10,078
Investments
12
599,740
468,748
606,465
478,826
Current assets
Debtors
14
396,759
353,760
Cash at bank and in hand
701,922
828,008
1,098,681
1,181,768
Creditors: amounts falling due within one year
15
(164,059)
(163,393)
Net current assets
934,622
1,018,375
Total assets less current liabilities
1,541,087
1,497,201
Provisions for liabilities
Deferred tax liability
16
-
0
3,147
-
(3,147)
Net assets
1,541,087
1,494,054
Capital and reserves
Called up share capital
18
46,250
46,250
Share premium account
19
152,502
152,502
Other reserves
21
203,391
203,391
Profit and loss reserves
22
1,138,944
1,091,911
Total equity
1,541,087
1,494,054
The financial statements were approved by the board of directors and authorised for issue on 19 July 2024 and are signed on its behalf by:
William Forsyth
Director
Company Registration No. SC231678
CS Managers Ltd
Statement of changes in equity
For the year ended 31 March 2024
11
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
46,250
152,502
203,391
1,022,153
1,424,296
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
84,795
84,795
Dividends
10
-
-
-
(15,037)
(15,037)
Balance at 31 March 2023
46,250
152,502
203,391
1,091,911
1,494,054
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
54,552
54,552
Dividends
10
-
-
-
(7,519)
(7,519)
Balance at 31 March 2024
46,250
152,502
203,391
1,138,944
1,541,087
CS Managers Ltd
Statement of cash flows
For the year ended 31 March 2024
12
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
16,762
205,207
Income taxes paid
(31,887)
(43,484)
Net cash (outflow)/inflow from operating activities
(15,125)
161,723
Investing activities
Purchase of tangible fixed assets
(2,566)
(5,306)
Purchase of investments
(368,533)
(441,542)
Proceeds from disposal of investments
243,510
490,894
Interest received
17,141
4,777
Dividends received
7,006
5,475
Net cash (used in)/generated from investing activities
(103,442)
54,298
Financing activities
Dividends paid
(7,519)
(15,037)
Net cash used in financing activities
(7,519)
(15,037)
Net (decrease)/increase in cash and cash equivalents
(126,086)
200,984
Cash and cash equivalents at beginning of year
828,008
627,024
Cash and cash equivalents at end of year
701,922
828,008
CS Managers Ltd
Notes to the financial statements
For the year ended 31 March 2024
13
1
Accounting policies
Company information

CS Managers Ltd is a private company limited by shares incorporated in Scotland. The registered office is 43 Charlotte Square, Edinburgh, EH2 4HQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents fees received in relation to investment management. Fees are recognised once earned.

1.4
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
33% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

Other investments are included at fair value.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
14
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

 

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
15
Classification of financial liabilities

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
16
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement if material, is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits
The company operates a defined contribution scheme for the benefit of some of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Website development costs

Website development costs are expensed as the website is not considered to be a revenue generating asset in its own right therefore no enduring economic benefit arises to the company directly as a result of operating the website. This treatment is in accordance with FRS 102.

CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
17
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Management fees
1,475,348
1,590,857
2024
2023
£
£
Other revenue
Interest income
17,141
4,777
Dividends received
7,006
5,475
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,810
14,400
Depreciation of owned tangible fixed assets
5,919
7,844
Operating lease charges
97,727
96,449
5
Employees

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

2024
2023
Number
Number
13
12
CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
5
Employees (continued)
18

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
670,392
643,039
Social security costs
72,069
67,337
Pension costs
84,890
65,319
827,351
775,695
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
182,750
211,750
Company pension contributions to defined contribution schemes
62,050
43,050
244,800
254,800
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
-
113,750
Company pension contributions to defined contribution schemes
-
28,250

As total directors' remuneration for qualifying services was less than £200,000 in the current year, no disclosure is provided for that year.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
17,141
4,777
Other income from investments
Dividends received
7,006
5,475
Total income
24,147
10,252
CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
7
Interest receivable and similar income (continued)
19
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
17,141
4,777
Dividends from financial assets measured at fair value through profit or loss
7,006
5,475
8
Other gains and losses
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Amounts written back to/(written off) fair value through profit or loss
3,025
(33,696)
Other gains/(losses)
Gain on disposal of financial assets held at fair value through profit or loss
2,944
21,092
5,969
(12,604)
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
19,605
31,923
Adjustments in respect of prior periods
(50)
-
0
Total current tax
19,555
31,923
Deferred tax
Origination and reversal of timing differences
(3,147)
(2,308)
Total tax charge
16,408
29,615
CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
9
Taxation (continued)
20

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
70,960
114,410
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
17,740
21,738
Tax effect of expenses that are not deductible in determining taxable profit
5,220
10,061
Tax effect of income not taxable in determining taxable profit
-
0
(4,369)
Permanent capital allowances in excess of depreciation
-
0
(302)
Other permanent differences
(1,639)
(1,041)
Deferred tax adjustments in respect of prior years
-
0
(554)
Chargeable gains
(7,603)
4,082
Amounts (charged)/credited directly to STRGL or otherwise
12
-
0
Marginal relief
(2,178)
-
0
Movement in deferred tax not recognised
4,856
-
0
Taxation charge for the year
16,408
29,615
10
Dividends
2024
2023
£
£
Interim paid
7,519
15,037
CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
21
11
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 April 2023
53,775
Additions
2,566
At 31 March 2024
56,341
Depreciation and impairment
At 1 April 2023
43,697
Depreciation charged in the year
5,919
At 31 March 2024
49,616
Carrying amount
At 31 March 2024
6,725
At 31 March 2023
10,078
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
2
2
Listed investments
599,738
468,746
599,740
468,748
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2023
2
468,746
468,748
Additions
-
368,533
368,533
Valuation changes
-
5,970
5,970
Disposals
-
(243,511)
(243,511)
At 31 March 2024
2
599,738
599,740
Carrying amount
At 31 March 2024
2
599,738
599,740
At 31 March 2023
2
468,746
468,748
CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
22
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Charlotte Square Investments Ltd
Scotland
Ordinary
100.00
0
Charlotte Square Wealth Management Ltd
Scotland
Ordinary
100.00
0
Charlotte Square Managers Limited
Scotland
Ordinary
100.00
0
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Charlotte Square Investments Ltd
1
-
0
Charlotte Square Wealth Management Ltd
1
-
0
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
371,745
324,594
Prepayments and accrued income
25,014
29,166
396,759
353,760
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
9,371
32,714
Amounts owed to group undertakings
1
1
Corporation tax
19,605
31,937
Other taxation and social security
61,749
56,372
Other creditors
4,884
4,969
Accruals and deferred income
68,449
37,400
164,059
163,393
CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
23
16
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
-
3,147
2024
Movements in the year:
£
Liability at 1 April 2023
3,147
Credit to profit or loss
(3,147)
Liability at 31 March 2024
-

 

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
84,890
65,319

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 5p each
925,000
925,000
46,250
46,250

In 2021, 241,500 of the company's own shares with a nominal value of £12,075 were purchased and continued to be held in Treasury as at 31 March 2024, representing 26.11% of issued share capital.

19
Share premium account
2024
2023
£
£
At the beginning and end of the year
152,502
152,502
CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
24
20
Equity settled share-based transactions

An employee of the company holds options to subscribe for 138,750 shares in the company under the Enterprise Management Incentive scheme.  The options are exercisable at prices ranging from £0.05p to £0.90p per share.  At 31 March 2024, 138,750 shares (2023: 138,750) had vested.  None of the options have been exercised.  The options expire in December 2025.

 

A further employee of the company holds options to subscribe for 10,000 shares in the company under the Enterprise Management Incentive share option plan. The options are exercisable at a price of 85p. As at 31 March 2024, 10,000 shares (2023: nil) had vested and none of the options had been exercised. The options expire on the tenth anniversary of the Date of Grant. The share option plan is subject to certain performance conditions relating to the employment of the grantee and the funds under the management of the company.

 

During the year ended 31 March 2024, 20,000 options under the Enterprise Management Incentive share option plan have lapsed.

 

The directors, having considered the share based payment requirements of FRS102, are satisfied that there are no material adjustments in relation to the option arrangements.

21
Other reserves
2024
2023
£
£
At the beginning and end of the year
203,391
203,391
22
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
1,091,911
1,022,153
Profit for the year
54,552
84,795
Dividends declared and paid in the year
(7,519)
(15,037)
At the end of the year
1,138,944
1,091,911
23
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
55,500
55,275
Between two and five years
63,428
124,875
118,928
180,150
CS Managers Ltd
Notes to the financial statements (continued)
For the year ended 31 March 2024
25
24
Related party transactions

The company paid a dividend of £3,867 (2023: £7,734) to the company's directors.

25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
54,552
84,795
Adjustments for:
Taxation charged
16,408
29,615
Investment income
(24,147)
(10,252)
Depreciation and impairment of tangible fixed assets
5,919
7,844
Other gains and losses
(5,969)
12,604
Movements in working capital:
(Increase)/decrease in debtors
(42,999)
53,922
Increase in creditors
12,998
26,679
Cash generated from operations
16,762
205,207
26
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
828,008
(126,086)
701,922
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