Company registration number 08600041 (England and Wales)
MOLE VALLEY ASSET MANAGEMENT LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
MOLE VALLEY ASSET MANAGEMENT LTD
COMPANY INFORMATION
Directors
A J Holder
C J Harper
D J Sanford
R V Rigby
M J Brett
Company number
08600041
Registered office
275 High Street
Dorking
Surrey
RH4 1RY
Auditor
Azets Audit Services
Woolsack Way
Godalming
Surrey
United Kingdom
GU7 1LQ
MOLE VALLEY ASSET MANAGEMENT LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
MOLE VALLEY ASSET MANAGEMENT LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

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

 

Business Review

Mole Valley Asset Management Ltd continues to provide tailored financial advice and asset management services to a diverse range of clients, including high-net-worth individuals, families, and corporate entities. Throughout the period, we expanded our service offerings in wealth management, investment advisory, and retirement planning, driven by our commitment to personalised financial solutions.

 

We delivered solid performance by leveraging our strategic approach and diversified portfolio management, positioning us as a trusted advisor in a volatile environment.

 

Strategy and Objectives

Our strategy focuses on sustainable growth by:

 

Key objectives for the coming period include increasing assets under management (AUM) improving client retention and driving innovation in our advisory services.

 

Principal Risks and Uncertainties

We have identified several key risks and uncertainties that could impact our business:

 

We are mitigating these risks by adopting a proactive investment strategy, maintaining close relationships with regulators, and investing in technology to safeguard client data.

 

Key Performance Indicators (KPIs)

We monitor our performance using the following KPIs:

 

Future Developments

Looking ahead, we anticipate continued growth in demand for comprehensive financial planning and sustainable investments. Our primary focus will be on expanding our client base and developing an innovative and thought through approach to investment advice. This year, we plan to expand our services by entering the corporate pension advisory sector, further enhancing the diversification of our offerings.

 

Financial Performance

For the period ending 31 July 2024, while we are navigating challenges with profitability, our revenue growth and solid liquidity position place us in a stable position for continued investment and future growth:

MOLE VALLEY ASSET MANAGEMENT LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Conclusion

Mole Valley Asset Management Ltd remains well-positioned for future growth. Our strategic investments and strong client relationships will continue to drive performance in the coming year. The company’s solid financial foundation and proactive risk management give us confidence in our ability to navigate any challenges and maintain our position as a financial services provider in the UK.

Statement by the directors relating to their statutory duties under section 172(1) of the Companies Act 2006

The directors, in line with their duties under s172 of the companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the company, and in doing so have regard, amongst other matters, to the:

 

The directors’ regard the above as key to their decision-making process. The company’s business strategy is focused on achieving success for the company in the mid to long-term however, the board promotes a culture of upholding the highest standards of business conduct and regulatory conduct. It also ensures these core values are communicated to the company’s employees and embedded in the company’s policies and procedures.

The Board recognises that building strong and lasting relationships with our stakeholders will help us to deliver our strategy in line with our long-term values and operate a sustainable business.

The Directors are supported in the discharge of their duties by:

On behalf of the board

C J Harper
Director
11 November 2024
MOLE VALLEY ASSET MANAGEMENT LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -

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

Principal activities

The principal activity of the company continues to be that of fund management.

Directors

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

A J Holder
C J Harper
D J Sanford
R V Rigby
M J Brett
Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Financial instruments

The company's financial instruments comprise bank balances, trade and other payables, and trade and other receivables. The purpose of these instruments is to finance the company's operating activities.

 

Due to the nature of the financial instruments used by the company there is no significant exposure to price and liquidity risk.

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.

MOLE VALLEY ASSET MANAGEMENT LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually 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 auditor is aware of that information.

On behalf of the board
C J Harper
Director
11 November 2024
MOLE VALLEY ASSET MANAGEMENT LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOLE VALLEY ASSET MANAGEMENT LTD
- 5 -
Opinion

We have audited the financial statements of Mole Valley Asset Management Ltd (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the balance sheet, 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.

Opinions on other matters prescribed by the Companies Act 2006

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

MOLE VALLEY ASSET MANAGEMENT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOLE VALLEY ASSET MANAGEMENT LTD
- 6 -
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.

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.

MOLE VALLEY ASSET MANAGEMENT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOLE VALLEY ASSET MANAGEMENT LTD
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 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.

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.

James Leigh
Senior Statutory Auditor
For and on behalf of Azets Audit Services
12 November 2024
Chartered Accountants
Statutory Auditor
Ashcombe Court
Woolsack Way
Godalming
Surrey
United Kingdom
GU7 1LQ
MOLE VALLEY ASSET MANAGEMENT LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
1,000,163
944,007
Cost of sales
(231,971)
(221,034)
Gross profit
768,192
722,973
Administrative expenses
(849,924)
(805,949)
Other operating income
6,118
-
0
Operating loss
7
(75,614)
(82,976)
Interest receivable and similar income
8
13,149
8,521
Loss before taxation
(62,465)
(74,455)
Tax on loss
9
-
0
8,404
Loss for the financial year
(62,465)
(66,051)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MOLE VALLEY ASSET MANAGEMENT LTD
BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
9,607
22,486
Current assets
Debtors
13
341,555
284,875
Cash at bank and in hand
346,072
443,430
687,627
728,305
Creditors: amounts falling due within one year
14
(129,044)
(120,136)
Net current assets
558,583
608,169
Net assets
568,190
630,655
Capital and reserves
Called up share capital
16
493,680
493,680
Share premium account
17
104,284
104,284
Profit and loss reserves
(29,774)
32,691
Total equity
568,190
630,655
The financial statements were approved by the board of directors and authorised for issue on 11 November 2024 and are signed on its behalf by:
C J Harper
Director
Company Registration No. 08600041
MOLE VALLEY ASSET MANAGEMENT LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 August 2022
493,680
104,284
98,742
696,706
Year ended 31 July 2023:
Loss and total comprehensive income for the year
-
-
(66,051)
(66,051)
Balance at 31 July 2023
493,680
104,284
32,691
630,655
Year ended 31 July 2024:
Loss and total comprehensive income for the year
-
-
(62,465)
(62,465)
Balance at 31 July 2024
493,680
104,284
(29,774)
568,190
MOLE VALLEY ASSET MANAGEMENT LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
21
(117,971)
(48,331)
Income taxes refunded/(paid)
8,510
(39,846)
Net cash outflow from operating activities
(109,461)
(88,177)
Investing activities
Purchase of tangible fixed assets
(1,046)
(2,124)
Interest received
13,149
8,521
Net cash generated from investing activities
12,103
6,397
Financing activities
Net cash used in financing activities
-
0
-
0
Net decrease in cash and cash equivalents
(97,358)
(81,780)
Cash and cash equivalents at beginning of year
443,430
525,210
Cash and cash equivalents at end of year
346,072
443,430
MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
1
Accounting policies
Company information

Mole Valley Asset Management Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 275 High Street, Dorking, Surrey, RH4 1RY.

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

The directors have considered the appropriateness of preparing the financial statements on a going concern basis, despite the company reporting a loss for the financial year ended 31 July 2024.true

 

The company experienced a loss this year primarily due to the company’s target to grow the asset base as a primary focus. The increased costs associated with this, staff recruitment and onboarding, which included higher-than-anticipated expenses for attracting and training new employees was expected. However, the directors have prepared detailed forecasts and cash flow projections for the next 12 months, which indicate a return to profitability. These forecasts take into account expected revenue growth and cost management initiatives.

 

The company’s liquidity position remains strong, with easily sufficient working capital to meet its obligations as they fall due. Liquidity remains significantly above regulatory requirements Additionally, the directors are confident in the strength of the company’s business model, market position, and strategic plans for growth.

 

After considering these factors, the directors believe that the company has adequate resources to continue operating for the foreseeable future and are satisfied that it is appropriate to prepare the financial statements on a going concern basis.

 

No material uncertainties have been identified that would cast significant doubt on the company's ability to continue as a going concern.

MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover

Turnover represents net invoiced sale sales of services, excluding value added tax. Fees are recognised in accordance with investment management agreements at the following rates:

 

- Management fees - These fees are charged in arrears at a % of the portfolio value as specified in the agreement with the client. They are recognised in the period they relate to.

 

- Dealing fees – These fees are charged as a % of a deal on completion. Rates may on occasion may be higher if these charges do not meet deal costs charged by third parties. They are recognised as and when a transaction occurs.

 

- Performance fees - These are charged at a rate of 15% of the client's return over and above a 5% hurdle rate. It is the opinion of the directors that since the crystallisation of performance fees are outside the control of the company and due to the considerable uncertainty involved in estimating any such fees, these fees are only recognised on crystallisation, either on liquidation of a client portfolio during the period, or on calculation and invoicing at the end of the calendar year.

 

- Financial advice fees – Revenue from the provision of professional services is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business. Clients are invoiced a recurring retainer fee or for adhoc services.

1.4
Client list

Intangible assets represent the amount paid for the acquisition of a client list from a competitor in November 2017. The amount capitalised consists of a mix of cash consideration, shares consideration and deferred consideration. It is amortised evenly to the statement of comprehensive income over its estimated useful life of five years and was fully amortised in the prior year.

 

The carrying value of intangible assets is reviewed for impairment at the end of each financial period if events or changes in circumstances indicate that the carrying value may not be recoverable.

 

After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

1.5
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:

Short leasehold
Over the term of the lease
Plant and machinery
25% on reducing balance
Fixtures and fittings
25% on reducing balance

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.

MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash at bank and in hand

Cash at bank and in hand 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.

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, 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.

MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets 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.

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 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.

Derecognition of financial liabilities

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

1.9
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
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.

 

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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense in the period in which they are incurred.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
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.

2
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.

 

The directors do not believe there are any key judgements or estimations used in preparing these financial statements other than determining whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Financial services supplied in the UK
1,000,163
944,007
MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
13,149
8,521
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,500
12,250
For other services
All other non-audit services
7,780
4,580
5
Employees

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

2024
2023
Number
Number
Directors
5
5
Operations
10
9
Total
15
14

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
477,551
422,552
Social security costs
45,508
38,771
Pension costs
25,316
34,819
548,375
496,142
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
154,685
146,117
Company pension contributions to defined contribution schemes
20,921
23,482
175,606
169,599
MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
6
Directors' remuneration
(Continued)
- 18 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

7
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
13,714
21,182
Loss on disposal of tangible fixed assets
211
6,674
Operating lease charges
50,243
46,143
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
13,149
8,521
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(8,510)
Adjustments in respect of prior periods
-
0
106
Total current tax
-
0
(8,404)

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

2024
2023
£
£
Loss before taxation
(62,465)
(74,455)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(11,868)
(14,146)
Tax effect of expenses that are not deductible in determining taxable profit
27
2,271
Unutilised tax losses carried forward
9,727
-
0
Intangible asset adjustment and depreciation in excess of capital allowances
2,114
3,540
Other tax adjustments
-
0
(69)
Taxation charge/(credit) for the year
-
(8,404)

At the year end, the company has trading losses carried forward of £51,195 (2023 - £Nil) resulting in a potential deferred tax asset of £12,799 (2023 - £Nil).

MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
10
Tangible fixed assets
Short leasehold
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 August 2023
45,165
9,066
16,105
70,336
Additions
-
0
-
0
1,046
1,046
Disposals
-
0
-
0
(553)
(553)
At 31 July 2024
45,165
9,066
16,598
70,829
Depreciation and impairment
At 1 August 2023
35,128
2,259
10,463
47,850
Depreciation charged in the year
10,037
2,442
1,235
13,714
Eliminated in respect of disposals
-
0
-
0
(342)
(342)
At 31 July 2024
45,165
4,701
11,356
61,222
Carrying amount
At 31 July 2024
-
0
4,365
5,242
9,607
At 31 July 2023
10,037
6,807
5,642
22,486
11
Intangible fixed assets
Client list
£
Cost
At 1 August 2023 and 31 July 2024
823,198
Amortisation and impairment
At 1 August 2023 and 31 July 2024
823,198
Carrying amount
At 31 July 2024
-
0
At 31 July 2023
-
0
12
Client assets

The company held funds on behalf of clients in a designated client account, the balance at year end was £6,634,079 (2023 - £4,557,278). The majority of stocks and shares are held on behalf of clients in a designated Crest account in the name of Seguro Nominees Limited and administered by Third Platform Services Limited. The value of stocks and shares held on behalf of discretionary management clients was £87,988,560 (2023 - £76,137,761).

MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
237,485
7,279
Corporation tax recoverable
-
0
8,510
Other debtors
9,041
10,669
Prepayments and accrued income
45,029
208,417
291,555
234,875
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
50,000
50,000
Total debtors
341,555
284,875
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
25,914
34,057
Taxation and social security
79,984
44,460
Other creditors
628
6,397
Accruals and deferred income
22,518
35,222
129,044
120,136
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
25,316
34,819

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.

There was £9,312 (2023 - £7,987) outstanding contributions at year-end.

MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
16
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
493,680 Ordinary of £1 each
493,680
493,680

The ordinary shares are irredeemable and have attached to them full rights in the company with regards to voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.

17
Share premium account
2024
2023
£
£
At the beginning and end of the year
104,284
104,284
18
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
49,550
13,692
Between two and five years
43,555
19,364
93,105
33,056
19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

During the year, the company invoiced management fees amounting to £37,497 (2023 - £39,168) to the directors and their close family members for the management of personal funds. These transactions were undertaken on normal commercial terms at market value and £6,360 (2023 - £nil) was outstanding at year-end.

20
Financial conduct authority disclosure requirement

Information relating to the company's capital adequacy requirement (Pillar 3 risk disclosure statement) can be found on the company's website at www.mvam.com.

MOLE VALLEY ASSET MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
21
Cash absorbed by operations
2024
2023
£
£
Loss for the year after tax
(62,465)
(66,051)
Adjustments for:
Taxation charged/(credited)
-
0
(8,404)
Investment income
(13,149)
(8,521)
Loss on disposal of tangible fixed assets
211
6,674
Depreciation and impairment of tangible fixed assets
13,714
21,182
Impairment
-
30,010
Movements in working capital:
(Increase)/decrease in debtors
(65,190)
5,841
Increase/(decrease) in creditors
8,908
(29,062)
Cash absorbed by operations
(117,971)
(48,331)
22
Analysis of changes in net funds
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
443,430
(97,358)
346,072
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