Company registration number 08321940 (England and Wales)
GLOBAL CUSTODIAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
GLOBAL CUSTODIAL SERVICES LIMITED
COMPANY INFORMATION
Directors
A J Fundell
O Harris
(Appointed 30 September 2024)
G Mullan
(Appointed 30 September 2024)
S Panesar
(Appointed 1 October 2024)
Company number
08321940
Registered office
6th Floor One New Change
London
United Kingdom
EC4M 9AF
Auditor
Azets Audit Services
2nd Floor
Regis House
45 King William Street
London
United Kingdom
EC4R 9AN
GLOBAL CUSTODIAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 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 - 20
GLOBAL CUSTODIAL SERVICES LIMITED
STRATEGIC REPORT
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the period ended 31 October 2024. During the year, the company changed its year end to 31 October and these accounts therefore cover the 18 month period to 31 October 2024.

Review of the business

The directors present the strategic report for the 18 month period ended 31 October 2024.

 

Global Custodial Services Ltd (GCS) provides investment administration services directly to investment firms. GCS's sister company, Global Currency Exchange Network Limited (GCEN) provides all related payment services and FX solutions.

The board reports an operating profit of £16,138 (April 2023: £311,756) with turnover of £344,857 (April 2023: £611,200). The board expects to see a reduction in profit in the coming year compared to previous periods due to the decision to scale back operations in 2023.

Principal risks and uncertainties

The principles risks and uncertainties identified by the directors are:

Earnings Growth Risk

The firm made the strategic decision to scale back GCS in 2023. The firm continues to not onboard new clients or develop the existing client base. Whilst the earnings will not grow, the associated costs with administering the book of business will decrease over time. The firm will no longer be looking to develop GCS and seek out new opportunities. This decision de-risks GCS from any earnings growth risk.

Operational Risk

As stated, the firm decided to scale back activities relating to GCS in 2023. Whilst this remains true, the firm continues to operate in a controlled environment; this is from a systems and controls, compliance and technology perspective. The firm looks to mitigate operational risk through front line staff. Any identified non-conformities or control observations are documented and remediated.

Regulatory Risk

This is the risk of new or increased regulations being introduced into the financial markets, which may impact the firm.

The firm discusses matters of a regulatory nature in both risk and CASS committee forums. Horizon scanning for regulatory change and/or developments is a standing agenda point. The firm operates policies and procedures within a control framework which mitigate the risk of non-compliance with FCA regulations.

Liquidity Risk

The firm has a monthly process to monitor the level of capital and liquidity as per the MIFIDPRU requirements. The firm has seen a reduction in the level of client money held and thus the firm own funds associated with the K-CMH K Factor have been reduced. These factors mitigate the liquidity risk associated with the firm.

Credit Risk

Whilst the firm does not offer any form of loans to clients, additional own funds have been accounted for in view of the credit risk associated with the failure of a banking partner. The methodology for the associated calculation for credit risk is as per UK CRR Article 120 Standardised Approach.

Concentration Risk

The firm has seen a reduction in the client base over the reporting period and therefore an associated reduction in the client money held. The firm is going through a track and trace exercise in order to pay away allocated but unclaimed client money. The firm does not perceive the loss of the client base to present a risk to the firm. The reduction in clients and transactions is effectively reducing any related risk and also the level of own funds required.

GLOBAL CUSTODIAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 2 -
Other information and explanations

Future developments

As a result of scaling back operations, the firm expects the existing client base to generate minimal revenue. This scaling back is limited to not on-boarding new business and the active advertising and promotion of the firm’s services to existing customers.

Section 172 statement

The Directors are responsible for promoting the success of the Company for the benefit of its members as a whole, having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies 2006:

 

  1. the likely consequences of any decision in the long term,

  2. the interests of the company’s employees

  3. the need to foster the company's business relationships with suppliers, customers and others,

  4. the impact of the company's operations on the community and the environment,

  5. the desirability of the company maintaining a reputation for high standards of business conduct, and 

  6. the need to act fairly as between members of the company.

 

The Directors, acknowledge their duties to promote the success of the Company and ensure wider engagement with stakeholders. The Directors meet regularly with the Company’s Executive Committee in order to guarantee these duties are being carried out and on occasion, external advice will be sought if deemed necessary. The Directors have also ensured that the governance framework in place adequately delegates decision making to the most appropriate employees of the Company

 

The Directors believe that treating all counterparties with which it interacts, with integrity, transparency and respect will foster stronger, longer lasting relationships. Enhancing the Company’s reputation through strong client support, care and fair treatment is a key Company objective and will significantly influence the levels of success the Company will experience. The continually improved operational efficiencies that form an integral part of the Company’s strategy, contribute to these objectives.

 

The Company continues its commitment to being a responsible organisation. The behavioural expectations of the Company’s employees, clients, shareholders, as well as the community that it acts in are all considered during material decision making. The link between the Company’s values and success is closely associated and the Company are invested in ensuring that its common values of integrity, excellence, collaboration, passion, personalisation and accountability guide behaviour and are instilled throughout the business, this in turn will contribute to the Company achieving its strategic objectives.

On behalf of the board

A J Fundell
Director
25 February 2025
GLOBAL CUSTODIAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 3 -

The directors present their annual report and financial statements for the period ended 31 October 2024. During the year, the company changed its year end to 31 October and these accounts therefore cover the 18 month period to 31 October 2024.

Principal activities

The principal activity of GCS during the year was that of investment administration services to investment funds/firms and fund managers. GCS is authorised and regulated by the Financial Conduct Authority ("FCA") and holds Part IV Permissions under the FSMA 2000. Registration number 595875.

 

GCS operates mainly from the its UK office in London but provides services to clients globally.

Results and dividends

The results for the 18 month period are set out on page 9.

 

Revenue will be sustained via the existing client base who we expect to continue to trade for the foreseeable future. Our scaling back is limited to not on-boarding new business and the active advertising and promotion of our GCS services to our existing customers.

Ordinary dividends were paid amounting to £300,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the 18 month period and up to the date of signature of the financial statements were as follows:

A J Fundell
O Harris
(Appointed 30 September 2024)
G Mullan
(Appointed 30 September 2024)
S Panesar
(Appointed 1 October 2024)
M Cox
(Resigned 30 September 2024)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the 18 month period. These provisions remain in force at the reporting date.

Auditor

Azets Audit Services 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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of Review of the business for the year.

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.

GLOBAL CUSTODIAL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 4 -
On behalf of the board
A J Fundell
Director
25 February 2025
GLOBAL CUSTODIAL SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 5 -

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.

GLOBAL CUSTODIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL CUSTODIAL SERVICES LIMITED
- 6 -
Opinion

We have audited the financial statements of Global Custodial Services Limited (the 'company') for the 18 month period ended 31 October 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.

Opinions on other matters prescribed by the Companies Act 2006

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

GLOBAL CUSTODIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLOBAL CUSTODIAL SERVICES LIMITED
- 7 -
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.

GLOBAL CUSTODIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLOBAL CUSTODIAL SERVICES LIMITED
- 8 -

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.

Robin Haslam
Senior Statutory Auditor
For and on behalf of Azets Audit Services
25 February 2025
Chartered Accountants
Statutory Auditor
2nd Floor
Regis House
45 King William Street
London
United Kingdom
EC4R 9AN
GLOBAL CUSTODIAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 9 -
18 months
Year
ended
ended
31 October
30 April
2024
2023
Notes
£
£
Turnover
3
344,857
611,200
Administrative expenses
(328,719)
(299,444)
Operating profit
4
16,138
311,756
Interest payable and similar expenses
7
(3,232)
-
0
Profit before taxation
12,906
311,756
Tax on profit
8
(2,471)
(60,761)
Profit for the financial 18 month period
10,435
250,995

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

GLOBAL CUSTODIAL SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
31 October 2024
30 April 2023
Notes
£
£
£
£
Current assets
Debtors
10
5,968
42,031
Cash at bank and in hand
575,799
686,734
581,767
728,765
Creditors: amounts falling due within one year
11
(312,801)
(170,234)
Net current assets
268,966
558,531
Capital and reserves
Called up share capital
12
75,195
75,195
Share premium account
13
124,905
124,905
Profit and loss reserves
14
68,866
358,431
Total equity
268,966
558,531
The financial statements were approved by the board of directors and authorised for issue on 25 February 2025 and are signed on its behalf by:
A J Fundell
Director
Company Registration No. 08321940
GLOBAL CUSTODIAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
75,195
124,905
207,436
407,536
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
250,995
250,995
Dividends
9
-
-
(100,000)
(100,000)
Balance at 30 April 2023
75,195
124,905
358,431
558,531
Period ended 31 October 2024:
Profit and total comprehensive income for the period
-
-
10,435
10,435
Dividends
9
-
-
(300,000)
(300,000)
Balance at 31 October 2024
75,195
124,905
68,866
268,966
GLOBAL CUSTODIAL SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
243,927
170,026
Interest paid
(3,232)
-
0
Income taxes paid
(51,630)
(38,674)
Net cash inflow from operating activities
189,065
131,352
Financing activities
Dividends paid
(300,000)
(100,000)
Net cash used in financing activities
(300,000)
(100,000)
Net (decrease)/increase in cash and cash equivalents
(110,935)
31,352
Cash and cash equivalents at beginning of 18 month period
686,734
655,382
Cash and cash equivalents at end of 18 month period
575,799
686,734
GLOBAL CUSTODIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 13 -
1
Accounting policies
Company information

Global Custodial Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor One New Change, London, United Kingdom, EC4M 9AF.

1.1
Reporting period

The current accounting period has been extended from one year to 18 months in order to be coterminus with the immediate parent company GC Partners Group Limited. The comparative amounts presented in the financial statements (including the related notes) are therefore not entirely comparable.

1.2
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.

1.3
Going concern

GCS has a close working relationship with Global Currency Exchange Network Limited (''GCEN''), a related party due to common control, therefore GCS's going concern status is linked to the ongoing relationship. As at the year end the directors are confident that this relationship will be in place for at least 12 months from the date of approval of these financial statements. In addition, GCEN has committed to providing financial support in the event that GCS requires this.true

The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future and will be able to meet its liabilities as they fall due.

1.4
Turnover

Turnover represents amounts receivable for the arrangement of client money services to investment companies and investment managers throughout the fund raising process as well as for 7% of any profit generated from GCS client foreign exchange trades placed by our sister company Global Currency Exchange Network Limited.

Interest earned on client money is the net interest margin earned on money held in client money bank accounts and is recognised over time, based on the client money balances under administration and by reference to the effective interest rate applicable

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand and deposits held at call with banks.

GLOBAL CUSTODIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.6
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 trade debtors, prepayments and accrued income 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 financial asset 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.

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.

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 accruals and deferred income and amounts due to group undertakings, 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.

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

Derecognition of financial liabilities

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

GLOBAL CUSTODIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
1.7
Equity instruments

Equity instruments issued by the company are recorded at the fair value of 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.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax. Current tax assets are recognised when tax paid exceeds the tax payable.

Current tax

Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.

 

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset if, and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.

 

Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.

 

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.

1.9
Foreign exchange

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate whenthat fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

1.10

Client monies

The company holds money on behalf of its clients in accordance with the rules of the Financial Conduct Authority. The balance of client money at 31 October 2024 was £51,299 (2023: £10,226,305). The company does not include this balance or the corresponding liability on its balance sheet,

GLOBAL CUSTODIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 16 -
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.

 

There were no key judgements or sources of estimation uncertainty identified in the period.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
The provision of custodial services and commission from GCEN
322,221
544,936
Net interest on client accounts
22,636
66,264
344,857
611,200
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
309,128
514,496
Rest of World
35,729
96,704
344,857
611,200
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
160
(56)
Operating lease charges
-
66,718
GLOBAL CUSTODIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 17 -
5
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
36,000
30,540
For other services
Audit-related assurance services
39,000
32,940
Taxation compliance services
4,800
4,950
All other non-audit services
3,000
5,400
46,800
43,290
6
Employees

The average monthly number of persons (including directors) employed by the company during the period was Nil (2023: Nil). All employees within the group are employed directly by Global Currency Exchange Network Limited with no recharge of payroll or associated expenses taking place.

2024
2023
Number
Number
Total
-
0
-
0
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
3,232
-
0
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,471
60,761

The main rate of corporation tax increased to 25%, effective from 1 April 2023. This main rate applies to companies with profits in excess of £250,000. The effective rate of tax for Global Custodial Services Ltd for the period to 31 October 2024 was 19%.

GLOBAL CUSTODIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
8
Taxation
(Continued)
- 18 -

The actual charge for the 18 month period can be reconciled to the expected charge for the 18 month period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
12,906
311,756
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.49%)
2,452
60,761
Tax effect of expenses that are not deductible in determining taxable profit
19
-
0
Taxation charge for the period
2,471
60,761
9
Dividends
2024
2023
£
£
Interim paid
300,000
100,000
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
973
14,802
Prepayments and accrued income
4,995
27,229
5,968
42,031
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
24,000
-
0
Amounts owed to group undertakings
217,923
33,205
Corporation tax
2,471
51,630
Accruals and deferred income
68,407
85,399
312,801
170,234
GLOBAL CUSTODIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 19 -
12
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
7,519,500
7,519,500
75,195
75,195
13
Share premium account

The excess of the amount received by the company over the par value of the shares.

14
Profit and loss reserves

Cumulative profits and losses net of distributions to owners.

15
Financial commitments, guarantees and contingent liabilities

In a previous period, a claim was brought against GCS and GCEN. As at the previous period end, it had been agreed that any financial liability arising from the claims would be paid in full by GCEN. During the period ended 31 October 2024, a settlement agreement of £2.45 million was reached. As at the date of these financial statements being signed, the payment of the settlement has been made in full by GCEN, with part of the settlement being paid during the period, and the remaining amount being paid subsequent to the period end. There are no further amounts payable in respect of this claim, and as a result there are no creditors or provisions required to be recognised in the financial statements of GCS.

16
Related party transactions

Transactions between wholly owned group companies have not been disclosed in accordance with the exemption permitted by Section 33.1A of FRS 102.

17
Ultimate controlling party

The immediate parent undertaking is GC Partners Group Limited, a company incorporated in England and Wales. The largest and smallest group for which consolidated accounts are prepared is that headed by GC Partners Group Limited. The registered office of GC Partners Group Limited is 6th Floor One New Change, London, United Kingdom, EC4M 9AF.

The ultimate parent company is Valiant Fx Bidco Limited.

GLOBAL CUSTODIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 18 MONTH PERIOD ENDED 31 OCTOBER 2024
- 20 -
18
Cash generated from operations
2024
2023
£
£
Profit for the 18 month period after tax
10,435
250,995
Adjustments for:
Taxation charged
2,471
60,761
Finance costs
3,232
-
0
Movements in working capital:
Decrease/(increase) in debtors
36,063
(10,773)
Increase/(decrease) in creditors
191,726
(130,957)
Cash generated from operations
243,927
170,026
19
Analysis of changes in net funds
1 May 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
686,734
(110,935)
575,799
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