Company registration number 13851272 (England and Wales)
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
COMPANY INFORMATION
Directors
J Herbert
A Herbert
Company number
13851272
Registered office
c/o Mercer & Hole LLP
21 Lombard Street
London
EC3V 9AH
Auditor
Mercer & Hole LLP
21 Lombard Street
London
EC3V 9AH
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 26
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 1 -

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

Review of the business

The Group consists of Oakwealth Capital Limited, a holding company and its trading subsidiary, Oakcean Capital Limited. The trading subsidiary has generated positive revenues which has been derived in the most part from repeatable asset management fees and is in line with the Board’s expectations. The Company expects to grow its AUM steadily, leading to an improvement in the company’s trading volumes and results.

 

In this period, Oakcean Capital has acquired quality clients and is well capitalised and in a good position to continue to expand its client base in the coming year.

 

The Directors will continue to explore opportunities for growth whilst ensuring that the company retains sufficient capital to satisfy its regulatory capital requirement.

Principal risks and uncertainties

As of 9 May 2023, the trading subsidiary, Oakcean Capital Limited, became regulated and authorised by the Financial Conduct Authority (“FCA”). The Company considers the main risk to be the performance of the underlying investment vehicles managed.

 

The trading subsidiary is primarily an investment management and advisory firm and has identified and performed an assessment of the key risks that may impact the business. The firm operates systems and controls to mitigate any adverse effects across the range of risks that it faces. Specifically, the Company is exposed to the following risks:

 

Credit risk – credit risk arises from cash at bank and in hand as well as credit exposure on the other assets on the balance sheet such as debtors. The directors monitor these balances on a regular basis.

 

Market risk – market risk is limited to foreign currency fees receivable, denominated in USD and any associated balances included on the Company’s statement of financial position. These balances are monitored regularly and the directors will take appropriate steps to managed this risk where necessary.

 

Liquidity risk – The company maintains sufficient liquid cash balances at its bank to cover cash flow requirements

 

Operational risk – The risk of failed or inadequate internal processes or systems is managed by the Board who have the responsibility to put the appropriate controls in place for the Company.

Development and performance

Performance fee income has a direct connection to our Assets under Management (AUM) which is a key metric that we as a firm look to grow year on year.

 

Client retention informs the Group if we are servicing our clients to the highest possible standards, providing them with the products and services they need to meet their individual needs.

 

The Directors aim to maintain the policies that have resulted in the growth of the trading subsidiary in the first period and anticipate further year on year growth as operations continue.

Group Key Performance Indicators

 

 

 

 

 

 

2024

2023

 

 

 

 

 

 

£

£

Turnover

 

 

 

 

 

67,298

-

Loss before tax

 

 

 

 

 

(116,933)

(19,678)

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
Section 172 statement

The directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:

 

The directors of the Group have sought to balance the needs of its members with the s.172 matters throughout the year, ensuring that the Group’s reputation for high standards of conduct are maintained and through strong relationships with employees and colleagues. The directors of the Group have a duty to promote the success of the Group, and this relies on smooth operations and the support and joint efforts of management. Thus, effective communication and interaction are indispensable in the Group’s business operations.

A Herbert
Director
6 March 2025
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the period ended 31 March 2024.

Principal activities

The principal activity of the Group was that of investment advisory services.

Results and dividends

The group results for the period are set out on page 8.

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

Directors

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

J Herbert
A Herbert
Auditor

Mercer & Hole LLP were appointed as auditor to the group 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.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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 auditor of the company 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 auditor of the company is aware of that information.

MIFIDPRU Public Disclosure

In accordance with MIFIDPRU 8 of the FCA’s handbook, it is the intention of the Company to update its MIFIDPRU public disclosure on an annual basis shortly after completion of the annual audit, together with details relating to the commitment to the UK Stewardship Code as required under the FCA’s sourcebook rule COBS 2.2.3R and Shareholders Rights Directive (SRDII) under rule COBS 2.2B.6R

On behalf of the board
A Herbert
Director
6 March 2025
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2024
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
- 5 -
Opinion

We have audited the financial statements of Oakwealth Capital Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

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:

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Explanation as to the extent the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006, Financial Conduct Authority regulation, employment law, and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
- 7 -

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.

Other matters which we are required to address

In the previous accounting period the directors of the company claimed audit exemption. Therefore the prior period financial statements were not subject to audit.

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.

Miss Helen Cain BA FCA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP, Statutory Auditor
Chartered Accountants
21 Lombard Street
London
EC3V 9AH
6 March 2025
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024
- 8 -
Unaudited
Period ended
Period ended
31 March
31 January
2024
2023
Notes
£
£
Turnover
3
67,298
-
Administrative expenses
(190,480)
(19,678)
Operating loss
4
(123,182)
(19,678)
Interest receivable and similar income
8
6,437
-
Interest payable and similar expenses
9
(188)
-
Loss before taxation
(116,933)
(19,678)
Tax on loss
10
-
0
-
0
Loss for the financial period
(116,933)
(19,678)
Loss for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
Unaudited
31 March
31 January
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,655
3,068
Current assets
Debtors
14
117,786
9,894
Cash at bank and in hand
307,938
100,062
425,724
109,956
Creditors: amounts falling due within one year
15
(567,988)
(132,700)
Net current liabilities
(142,264)
(22,744)
Net liabilities
(136,609)
(19,676)
Capital and reserves
Called up share capital
17
2
2
Profit and loss reserves
(136,611)
(19,678)
Total equity
(136,609)
(19,676)
The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
06 March 2025
A Herbert
Director
Company registration number 13851272 (England and Wales)
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
Unaudited
31 March
31 January
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Investments
12
375,000
2
Current assets
Debtors
14
94,734
-
0
Cash at bank and in hand
75,734
-
0
170,468
-
Creditors: amounts falling due within one year
15
(552,885)
-
Net current liabilities
(382,417)
-
Net (liabilities)/assets
(7,417)
2
Capital and reserves
Called up share capital
17
2
2
Profit and loss reserves
(7,419)
-
Total equity
(7,417)
2

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's loss for the period was £7,419 (2023 - £nil).

The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
06 March 2025
A Herbert
Director
Company registration number 13851272 (England and Wales)
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 January 2023:
Balance at 16 January 2022
-
0
-
0
-
Year ended 31 January 2023:
Loss and total comprehensive expense
-
(19,678)
(19,678)
Other movements
2
-
2
Balance at 31 January 2023
2
(19,678)
(19,676)
Period ended 31 March 2024:
Loss and total comprehensive expense
-
(116,933)
(116,933)
Balance at 31 March 2024
2
(136,611)
(136,609)
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 January 2023:
Balance at 16 January 2022
-
0
-
0
-
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
-
0
Other movements
2
-
2
Balance at 31 January 2023
2
-
0
2
Period ended 31 March 2024:
Profit and total comprehensive expense
-
(7,419)
(7,419)
Balance at 31 March 2024
2
(7,419)
(7,417)
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024
- 13 -
Unaudited
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
205,675
103,563
Interest paid
(188)
-
0
Net cash inflow from operating activities
205,487
103,563
Investing activities
Purchase of tangible fixed assets
(4,048)
(3,501)
Interest received
6,437
-
0
Net cash generated from/(used in) investing activities
2,389
(3,501)
Net increase in cash and cash equivalents
207,876
100,062
Cash and cash equivalents at beginning of period
100,062
-
0
Cash and cash equivalents at end of period
307,938
100,062
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024
- 14 -
Unaudited
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
450,732
-
0
Investing activities
Purchase of subsidiaries
(374,998)
(2)
Net cash used in investing activities
(374,998)
(2)
Financing activities
Proceeds from issue of shares
-
2
Net cash generated from financing activities
-
2
Net increase in cash and cash equivalents
75,734
-
Cash and cash equivalents at beginning of period
-
0
-
0
Cash and cash equivalents at end of period
75,734
-
0
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information

Oakwealth Capital Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is c/o Mercer & Hole LLP, 21 Lombard Street, London, EC3V 9AH.

 

The group consists of Oakwealth Capital Limited and its subsidiary.

1.1
Reporting period

This period of account covers the period from 1 February 2023 to 31 March 2024. The prior period of account covers the period from incorporation to 31 January 2023. They are therefore not directly 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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Oakwealth Capital Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

1.5
Going concern

In assessing the appropriateness of the adoption of the going concern basis of accounting, the directors have prepared detailed cash flow forecasts for the group extending 12 months from the date of approval of these financial statements. The forecasts indicate that in any reasonable scenario, the Group has sufficient cash to meet its liabilities as they fall due.

 

The Group also benefits from strong support from its directors and sole shareholder who have indicated that they have no intention of recalling amounts owed to them and will continue to provide additional support as necessary. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Turnover

Turnover represents the amounts recoverable for the investment management services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

Performance fee income is measured on an annual basis and only recognised at the end of the service period, once the contractual obligations have been met.

Referral fee income is ad hoc and recognised once the service is performed.

1.7
Tangible fixed assets

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

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

Fixtures and fittings
20% straight line
Computers
33% straight line

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

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.10
Cash and cash equivalents

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

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors 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.

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Other financial assets

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

Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of investments

Investments in subsidiaries are initially measured at cost and subsequently at cost less impairment. In assessing whether an impairment should be recognised the directors consider the performance of the subsidiary as well as its expected future performance and its position at the reporting date.

3
Turnover and other revenue
Unaudited
2024
2023
£
£
Turnover analysed by class of business
Investment Advisory
67,298
-
Unaudited
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
67,298
-
Unaudited
2024
2023
£
£
Other revenue
Interest income
6,437
-
4
Operating loss
Unaudited
2024
2023
£
£
Operating loss for the period is stated after charging:
Depreciation of owned tangible fixed assets
1,461
433
Operating lease charges
43,200
10,800
5
Auditor's remuneration
Unaudited
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,300
-
Audit of the financial statements of the company's subsidiaries
8,000
-
11,300
-
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
5
Auditor's remuneration
(Continued)
- 21 -
For other services
Taxation compliance services
2,125
750
All other non-audit services
4,610
2,200
6,735
2,950
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
3
2
2
2

Their aggregate remuneration comprised:

Group
Unaudited
Company
Unaudited
2024
2023
2024
2023
£
£
£
£
Wages and salaries
63,454
-
0
-
0
-
0
Social security costs
139
-
-
-
Pension costs
439
-
0
-
0
-
0
64,032
-
0
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
29,237
-
Company pension contributions to defined contribution schemes
439
-
29,676
-
8
Interest receivable and similar income
Unaudited
2024
2023
£
£
Interest income
Interest on bank deposits
6,437
-
0
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
8
Interest receivable and similar income
(Continued)
- 22 -
Unaudited
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6,437
-
9
Interest payable and similar expenses
Unaudited
2024
2023
£
£
Other finance costs:
Other interest
188
-
10
Taxation

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

2024
2023
£
£
Loss before taxation
(116,933)
(19,678)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(29,233)
(3,739)
Change in unrecognised deferred tax assets
29,233
3,739
Taxation charge
-
-
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 23 -
11
Tangible fixed assets
Group
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 February 2023
190
3,311
3,501
Additions
133
3,915
4,048
At 31 March 2024
323
7,226
7,549
Depreciation and impairment
At 1 February 2023
6
427
433
Depreciation charged in the period
41
1,420
1,461
At 31 March 2024
47
1,847
1,894
Carrying amount
At 31 March 2024
276
5,379
5,655
At 31 January 2023
184
2,884
3,068
The company had no tangible fixed assets at 31 March 2024 or 31 January 2023.
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
375,000
2

On 3 September 2022, prior to the commencement of trade, the share capital of Oakcean Capital Limited was transferred to Oakwealth Capital Limited. During the period to 31 March 2024, further share capital of £374,998 was issued at par.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023
2
Additions
374,998
At 31 March 2024
375,000
Carrying amount
At 31 March 2024
375,000
At 31 January 2023
2
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 24 -
13
Subsidiaries

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

Name of undertaking
Registered Office
Class of
% Held
shares held
Direct
Oakcean Capital Limited
21 Lombard Street, London EC3V 9AH
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Oakcean Capital Limited
245,808
(109,514)
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Amounts owed by subsidiaries
-
-
94,734
-
Other debtors
76,547
5,865
-
0
-
0
Prepayments and accrued income
41,239
4,029
-
0
-
0
117,786
9,894
94,734
-
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Other taxation and social security
3,753
-
-
-
Other creditors
546,700
130,000
546,700
-
0
Accruals and deferred income
17,535
2,700
6,185
-
0
567,988
132,700
552,885
-
0
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
439
-

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 25 -
17
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
18
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
103,790
10,800
-
-
Between two and five years
108,192
-
-
-
211,982
10,800
-
-
19
Related party transactions

At the period end the company owed £346,700 (2023: nil) to A Herbert and £200,000 (2023: nil) to J Herbert, both of whom are Directors.

20
Controlling party

During the period, the company was under control of J Herbert, one of the directors.

21
Cash generated from group operations
2024
2023
£
£
Loss after taxation
(116,933)
(19,678)
Adjustments for:
Finance costs
188
-
0
Investment income
(6,437)
-
0
Depreciation and impairment of tangible fixed assets
1,461
433
Movements in working capital:
Increase in debtors
(107,892)
(9,892)
Increase in creditors
435,288
132,700
Cash generated from operations
205,675
103,563
OAKWEALTH CAPITAL LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 26 -
22
Cash generated from operations - company
2024
2023
£
£
Loss after taxation
(7,419)
-
Movements in working capital:
Increase in debtors
(94,734)
-
Increase in creditors
552,885
-
Cash generated from operations
450,732
-
23
Analysis of changes in net funds - group
1 February 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
100,062
207,876
307,938
24
Analysis of changes in net funds - company
1 February 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
-
75,734
75,734
25
Prior period adjustment

The prior period Company only figures have been restated to include the Company's holding in Oakcean Capital Limited. The holding was transferred to the Company on 3 September 2022.

 

The prior period adjustment does not give rise to any changes in equity,

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