Registration number:
Mountstone Partners Limited
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Brebners
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Mountstone Partners Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Mountstone Partners Limited
Company Information
Directors |
J Keen C S Dixon |
Registered office |
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Auditor |
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Mountstone Partners Limited
Strategic Report for the Year Ended 30 September 2024
The directors present their strategic report for the year ended 30 September 2024.
Principal activity
The company is authorised and regulated by the Financial Conduct Authority. The principal activity of the company is that of investment management.
Fair review of the business
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Gross Profit |
£ |
2,712,005 |
2,373,076 |
Gross Profit Margin |
% |
88 |
87 |
The directors report an increeas in turnover of £358,326 in the year to £3,081,730 from £2,723,404 in 2023 representing an 11.6% increase on the previous year.
It has been a good year for Mountstone Partners. We have grown our assets under management by 14.5%, due both to underlying portfolio investment performance and also due to an increase in the number of new clients introduced over the year, mainly due to referrals from existing clients. Net profits have increased 18.7% (taking into account some exceptionals such as a significant one-off charitable donation in 2023-24).
We have expanded our financial planning team over the year to ensure that we can continue to offer all clients the opportunity to benefit from expert financial advice, if required. We continue to look opportunistically for the highest quality advisers and investment managers to join our growing team, with a cultural fit being the most important factor alongside experience and technical expertise.
Whilst we are partially beholden to stock market movements, we anticipate that 2025 will bring further growth, as we continue to organically take on new clients. We are conscious of the need to have sufficient resource and infrastructure to cater for this growth and will invest where required to facilitate it.
Non-financial key performance indicators
In a company this size the director considers there are collective numerous non-financial performance indicators but none individually are key.
Future Developments
The company continues to grow organically, mainly through referrals from existing clients. New potential avenues of growth in 2025 include continuing to expand the range of partnerships with firms and individuals looking to offer expert discretionary investment management to their clients. The directors continue to look to hire experienced investment managers who buy into their investment process and wish to contribute to that process, however a cultural fit is by far the most important consideration. In addition the company will continue to search for experienced advisers who can offer holistic financial planning advice to clients, some of whom may also require investment portfolio management.
Principal risks and uncertainties
The board is responsible for determining the level of risk acceptable to the company. This is subject to regular review. The company seeks to mitigate its risks through the application of strict limits and controls and a monitoring process at operational level. Where it is appropriate and cost effective risks are passed to insurers.
Mountstone Partners Limited
Strategic Report for the Year Ended 30 September 2024
Credit Risk
Credit risk is the risk that counterparties will not be able to meet their obligations as they fall due. There are regular credit reviews of counterparty limits to ensure debtors remain at a reasonable level. Credit reviews are undertaken before new counterparties are accepted.
Operational Risk
Operational risk is caused by failures in business processes or the systems or physical infrastructure that support them that have the potential to result in financial loss or reputation damage. This includes errors, omissions, systems failure, lack of resources or physical assets and deliberate acts such as fraud.
The regulated environment in which the company operates, imposes extensive reporting requirements and continuing self-assessment and appraisal. The company seeks to continually improve its operating efficiencies and standards.
Liquidity Risk
The company ensures that liquidity is maintained by monitoring cash balances daily to ensure it retains flexibility in the management of cash flows.
Market Risk
The company is affected by changes in market performance, as income of the company is derived from both performance and management fees arising from various funds under management.
Approved by the
.........................................
Director
Mountstone Partners Limited
Directors' Report for the Year Ended 30 September 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
Directors of the company
The directors who held office during the year were as follows:
Dividends
During the year interim dividends amounting to £767,699 (2023: £1,159,596) were paid. No final dividend is proposed.
Disclosure of information in the Strategic Report
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.
Directors' indemnities
As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the director on
.........................................
J Keen
Director
Mountstone Partners Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
Mountstone Partners Limited
Independent Auditor's Report to the Members of Mountstone Partners Limited
for the Year Ended 30 September 2024
Opinion
We have audited the financial statements of Mountstone Partners Limited (the 'company') for the year ended 30 September 2024, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, 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).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
• |
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
• |
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Mountstone Partners Limited
Independent Auditor's Report to the Members of Mountstone Partners Limited
for the Year Ended 30 September 2024
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the (set out on page ), 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.
Mountstone Partners Limited
Independent Auditor's Report to the Members of Mountstone Partners Limited
for the Year Ended 30 September 2024
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:
Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), the Financial Conduct Authority, UK corporate taxation laws, anti-bribery legislation and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
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, collusion, omission, misrepresentation or forgery.
Mountstone Partners Limited
Independent Auditor's Report to the Members of Mountstone Partners Limited
for the Year Ended 30 September 2024
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.
......................................
For and on behalf of
130 Shaftesbury Avenue
W1D 5AR
Mountstone Partners Limited
Income Statement for the Year Ended 30 September 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
1,508,390 |
1,245,385 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
- |
( |
|
64,625 |
31,029 |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
Mountstone Partners Limited
Statement of Financial Position as at 30 September 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
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Tangible assets |
|
|
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Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
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Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Other reserves |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
......................................................................
J Keen
Director
Company registration number: 08076218
Mountstone Partners Limited
Statement of Changes in Equity for the Year Ended 30 September 2024
Share capital |
Other reserves |
Retained earnings |
Total |
|
At 1 October 2022 |
|
- |
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Share based payment transactions |
- |
7,089 |
- |
7,089 |
At 30 September 2023 |
28,446 |
7,089 |
1,583,072 |
1,618,607 |
Share capital |
Other reserves |
Retained earnings |
Total |
|
At 1 October 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Share based payment transactions |
- |
10,220 |
- |
10,220 |
At 30 September 2024 |
|
|
|
|
Mountstone Partners Limited
Statement of Cash Flows for the Year Ended 30 September 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Accrued expenses |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
- |
|
|
Share based payment transactions |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in trade and other debtors |
( |
|
|
Increase in trade and other creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
- |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
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Cash and cash equivalents at 1 October |
|
|
|
Cash and cash equivalents at 30 September |
1,658,188 |
1,317,934 |
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
General information |
The company is a private company limited by shares, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company is that of investment management.
The principal place of business is:
27 Beak Street
London
W1F 9RU
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value. The financial statements are presented in sterling, which is the functional currency of the entity.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Going concern
The company made a profit for the year ended 30 September 2024 and had net assets of £2,033,517 at that date, including cash at bank of £1,658,188.
The directors have considered the current economic uncertainty and it is their view that the impact on the company will be manageable.
The directors have produced forecasts and as a result are optimistic that the services provided by the company will be in continued demand as the market recovers. Subsequent to 30 September 2024, trading has also seen continued profitability as demonstrated in the latest available management accounts with the company's net asset position and liquidity remaining strong.
On the basis of the above, and after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Other than those involving estimations there are no judgements that management have made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature will rarely equal actual related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows.
Intangible and tangible fixed assets are depreciated to their estimated residual values over their estimated useful lives. The directors exercise judgement to determine these useful lives and residual values.
Deferred tax assets and liabilities require management judgement in determining the amounts to be recognised with consideration given to the timing, nature and level of future taxable income. The recognition of deferred tax assets relating to tax losses carried forward relies on profit projections and taxable profit forecasts prepared by management, where a number of assumptions are required based on the levels of growth in profits and the reversal of deferred tax balances.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable in respect of investment management services provided in the ordinary course of the company's activities.
Revenue from fees is recognised when discretionary investment management services have been provided to clients, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the services can be measured reliably.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Financial dashboard |
33.3% straight line |
If there is an indication that there has been a significant change in amortisation rate, useful life or residual of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
33.3% straight line |
Leasehold Property |
Over the period of the lease |
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Investment in Associate
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Operating leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
The benefits of rent concessions received are recognised in the period in which they were intended to compensate.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Share based payments
The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
Financial instruments
Recognition and measurement
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Impairment
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
2024 |
2023 |
|
Rendering of services |
|
|
Other revenue |
|
|
|
|
The turnover and profit before tax are attributable to the one principal activity of the company.
No geographical analysis of turnover and profit before tax has been prepared as the directors are of the opinion that no part of the company's worldwide market is substantially different from any other and therefore no geographical analysis is required.
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange losses |
|
- |
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on cash and cash equivalents |
|
|
Other finance income |
|
- |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest expense on other finance liabilities |
- |
|
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Staff costs |
The aggregate payroll costs were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Share-based payment expenses |
|
|
Other employee expense |
|
|
|
|
Staff numbers |
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
Investment management |
|
|
|
|
Auditor's remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Taxation compliance services |
|
|
Non-audit services |
|
|
|
|
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Taxation |
Tax charged/(credited) in the income statement
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
- |
400,626 |
288,288 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
- |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense from unrecognised temporary difference from a prior period |
- |
|
Tax decrease from other tax effects |
- |
( |
Total tax charge |
|
|
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Intangible assets |
Financial |
Total |
|
Cost or valuation |
||
At 1 October 2023 |
|
|
At 30 September 2024 |
|
|
Amortisation |
||
At 1 October 2023 |
|
|
Amortisation charge |
|
|
At 30 September 2024 |
|
|
Carrying amount |
||
At 30 September 2024 |
|
|
At 30 September 2023 |
|
|
Tangible assets |
Short leasehold property |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
|||
At 1 October 2023 |
|
|
|
Additions |
- |
|
|
At 30 September 2024 |
|
|
|
Depreciation |
|||
At 1 October 2023 |
|
|
|
Charge for the year |
|
|
|
At 30 September 2024 |
|
|
|
Carrying amount |
|||
At 30 September 2024 |
|
|
|
At 30 September 2023 |
|
|
|
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Investments |
2024 |
2023 |
|
Investments in associates |
|
|
Associates |
£ |
Cost |
|
At 1 October 2023 & 30 September 2024 |
|
Carrying amount |
|
At 30 September 2024 |
|
At 30 September 2023 |
|
The investment in associates represents 25% of the voting capital of Hrandp Ltd, whose registered office is located at 97 Mantilla Road, London, SW17 8DX.
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
Other debtors includes an amount of £79,373 (2023: £19,373) receivable in more than one year.
Creditors |
2024 |
2023 |
|
Due within one year |
||
Trade creditors |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
Corporation tax liability |
399,692 |
288,289 |
|
|
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
15,361 |
|
15,361 |
|
|
5,974 |
|
5,974 |
|
|
7,111 |
|
7,111 |
|
|
|
|
There are no restrictions on the declaration of dividends or the repayment of capital.
Each class of shares ranks pari-pasu in all respects save that the directors may at any different time resolve to declare a dividend on one class but not the other and may decide to pay a different level of dividend on each share class.
Reserves |
Profit and loss account includes all current and prior retained profits and losses.
|
Commitments under operating leases |
The total of future minimum lease payments not included in the Statement of Financial position is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount charged to the profit and loss in respect of operating leases amounted to £64,575 (2023: £62,909).
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Share-based payments |
Scheme details and movements
All of the options lapse after 10 years if not exercised and there are no cash settlement alternatives.
The total expense recognised in the statement of profit and loss for the year was £10,220 (2023: £7,089).
Dividends |
Dividends paid during the year (excluding those for which a liability exists at the end of the prior period):
2024 |
2023 |
|
Equity dividends on Ordinary shares |
|
|
Analysis of changes in net debt |
At 1 October 2023 |
Cash flows |
At 30 September 2024 |
|
Cash and cash equivalents |
|||
Cash |
1,317,934 |
340,254 |
1,658,188 |
|
|
|
|
|
Mountstone Partners Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Related party transactions |
Key management personnel
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £19,277 (2023: £19,274).
Summary of transactions with entities with joint control or significant interest
During the year the company received consultancy services from an associated undertaking amounting to £295,232 (2023: £233,132). An amount of £Nil (2023: £26,374) was also recharged in respect of rent and rates and £Nil (2023: £27,934) in respect of custody and platform costs.
Directors |
During the year dividends amounting to £642,707 (2023: £934,611) were paid to the directors and their close household members.
Non adjusting events after the financial period |
|