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REGISTERED NUMBER: 05089880 (England and Wales)















FUNDAMENTAL ASSET MANAGEMENT LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024






FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Statement of Comprehensive Income (Profit and Loss) 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Statement of Cash Flows 14

Notes to the Financial Statements 15


FUNDAMENTAL ASSET MANAGEMENT LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2024







DIRECTORS: C A Boxall
S Drabwell


SECRETARY: C A Boxall


REGISTERED OFFICE: C/o Cox Costello & Horne
Batchworth Lock House
99 Church Street
Rickmansworth
WD3 1JJ


REGISTERED NUMBER: 05089880 (England and Wales)


SENIOR STATUTORY AUDITOR: Michael F Cox BSc FCA


AUDITORS: Cox Costello & Horne
Chartered Accountants and Statutory Auditors
Batchworth Lock House
99 Church Street, Rickmansworth
WD3 1JJ


BANKERS: Barclays Bank Plc
6 Church Street
Rickmansworth
Hertfordshire
WD3 1BT

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024


The directors present their strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS
The main activity of the company during the reporting period was the provision of investment management services. The activity will continue in 2024/2025. The company, limited by shares, is authorised and regulated by the Financial Conduct Authority to undertake the activity. The nature of the company's business and the factors determining the level of regulatory capital have not changed during the current reporting period.

Results and performance
The company results for the year, as set out in the primary statement 'Statement of Comprehensive Income (Profit and Loss)', show a profit before taxation of £711,225 (2023 - £841,436). As set out in the primary statement 'Statement of Financial Position', the company shareholders' funds total £486,270 (2023 - £631,409).

The company managed to generate revenue and operating profit in line with the previous year, despite continued weak market conditions, notably in respect of smaller quoted UK companies. This was achieved by winning some new larger client mandates, which offset the fall in the value of existing assets under management due to market weakness and the small number of client departures.

FINANCIAL AND NON-FINANCIAL KEY PERFORMANCE INDICATORS
The directors have carefully considered the key performance indicators which they have set for the company.

The directors consider that the key financial KPIs are:

30.6.24 30.6.23
£    £   
Turnover 1,327,998 1,313,206

Operating Profit 720,449 845,668

In respect of the non financial FPIs

1. Growth in net inflows as a % of Assets under management +3% (2023 - +11%)

2. Decline in number of client accounts -1% (2023 - growth +12%)

The directors are satisfied that the company has performed satisfactorily against each of these indicators.

BUSINESS ENVIRONMENT
The UK investment management sector is highly competitive and dominated by large multi-national groups, however, the company's activities principally address a sub-sector where smaller specialist firms operate. Pricing structure in the company's specialist sector has remained reasonably stable over the past few years. The firm outsources the majority of back office functions and therefore benefits from the technology investment of key service providers.

GOING CONCERN
In adopting the going concern basis for preparing the financial statements, the directors have considered company's business activities, objectives and strategy, principal risks and uncertainties in achieving its objectives, and performance that are set out in the strategic report. The directors have performed a robust assessment of the company's financial forecasts across a range of scenarios over a 12-month period from the date the financial statements are authorised for issue. With new product launches planned, the directors anticipate profits will continue to grow over the coming years. Based on these, the directors confirm that they have a reasonable expectation that the company has adequate resources to continue for the 12 months from the date the financial statements are authorised for issue. The directors therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.


FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

MIFIDPRU 8 DISCLOSURE
The directors continue to consider that the firm meets the Materiality exemption and therefore the do not make any financial disclosures, apart from in respect of Remuneration.

Our Remuneration statement can be found in the final section of our Conflicts of Interest Policy via this link https://fundamentalasset.com/conflicts-of-interest/

FUTURE DEVELOPMENTS
The company anticipates a greater level of income from the expansion of Discretionary Investment Management activities as a result of increased marketing activity and its growing reputation in the market. The company's AIM portfolios have experienced challenging markets, exacerbated by uncertainty surrounding likely tax changes imposed by the new government. While confident that relevant tax reliefs will be maintained by the new government and remain supportive the company is also planning to launch new products in support of further growth.

PRINCIPAL RISKS AND UNCERTAINTIES
Principal risks and uncertainties are continually assessed by management. These risks, including marketing and competition risk, are managed through maintaining close sensitivity to the market and to changes in demand, customer interests and competitive pressures. The directors monitor performance on a weekly and monthly basis using a range of financial and non-financial indicators. Working capital management is a primary indicator which is reviewed regularly to monitor cashflow.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Credit risk for the company principally takes the form of debtors and cash deposits. The company has not experienced any bad debt problems and has not written off any fee income receivables.

The company does not carry out principal trading activities but does have indirect exposure to market risk as management fee income is based on funds under management. Stress testing of market risk is carried out as part of the company's Internal Capital Adequacy and Risk Assessment ("ICARA") under the Investment Firms Prudential Regime. The company's financial resources are managed to ensure that sufficient funds are retained to meet short-term liabilities, i.e. to manage liquidity risks. The company's capital requirement is assessed and managed via ICARA.


FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

SECTION 172(1) STATEMENT
The directors have a duty to promote the success of the company for the benefit of shareholders as a whole and to describe how they have performed this duty having regard to matters set out in the section 172 (1) of the Companies Act 2006.

a) The likely consequences of long-term decisions

The company holds regular meetings. Shareholder representation is strong at all these meetings and the ongoing performance and future direction of the business is at the heart of discussions. Additionally, staff wellbeing and practical matters regarding the operational aspects of the business are considered and issues addressed.

b) The interests of the company's employees

The company's business relies completely relies on its staff, so the calibre of employees and their wellbeing is extremely important. A performance appraisal process is in place to encourage conversation and the raising of concerns, and to consider training and support requirements. Meetings of all staff take place weekly.

c) The need to foster good business relationships with suppliers, customers, and others

The company puts a great deal of effort into communications with investors in, and interested parties to, its portfolios. Factsheets are prepared and issued monthly and regular communication events such as webinars, and videos are run.

Fundamental places great importance in its ongoing relationship with the brokers and platforms through whom it arranges trades and who custody client assets.

d) The desirability of the company maintaining a reputation for high standards of business conduct

The Board is committed to maintaining high standards of corporate governance in relation to business conduct. It monitors and expects good standards of companies in which its portfolios invest. Environmental, social, and governmental considerations are part of the investment management decision process. In support of this the company is a signatory of the Principles for Responsible Investment ('PRI'), the world's leading proponent of responsible investment.

e) The impact of the company's operations on the community and the environment

The company understands the importance of being a good corporate citizen.

f) The need to act fairly between members of the company

Members of the company are encouraged to contribute ideas and thoughts as to a future strategy. The Board believes that consistent delivery of investor expectations in terms of returns and client servicing is the best way to grow funds under management and that new opportunities provide a platform for step change to the business, which benefits all and ensures the long terms success of the business.

ON BEHALF OF THE BOARD:





S Drabwell - Director


11 October 2024

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2024


The directors present their report with the financial statements of the company for the year ended 30 June 2024.

DIVIDENDS
Ordinary £1 shares
During the reporting year, an aggregate interim dividend of £17 (2023: £16.5) per share were paid. The directors recommend no final dividend be paid.

The total equity dividends for the reporting year will be £680,000 (2023: £660,000).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

C A Boxall
S Drabwell

INFORMATION DISCLOSED IN THE STRATEGIC REPORT
As permitted by Section 414C(11) of the UK Companies Act, some of the matters required to be included in the directors' report have instead been included in the strategic report, as the Board considers them to be of strategic importance.

Specifically, these are:
i. Future developments
ii. Financial risk management objectives and policies; and
iii. The exposure of the company to various risks.

EVENTS AFTER THE REPORTING PERIOD
The directors are not aware of any significant events post reporting period that require disclosure in this report of the financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2024


AUDITORS
The auditors, Cox Costello & Horne, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S Drabwell - Director


11 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FUNDAMENTAL ASSET MANAGEMENT LIMITED


Opinion
We have audited the financial statements of Fundamental Asset Management Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income (Profit and Loss), 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 June 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FUNDAMENTAL ASSET MANAGEMENT LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FUNDAMENTAL ASSET MANAGEMENT LIMITED


Auditors' 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 a Report of the Auditors 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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company's regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigation. We identified the following areas as those most likely to have such an effect: laws and regulations relevant to an FCA regulated company- the requirements of the FCA handbook; employment legislation; health and safety legislation; anti money laundering regulations, data protection legislation; anti-bribery and corruption legislation.

International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

i. Challenging assumptions made by management in its significant accounting estimates;

ii. Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, and journal entries posted by senior management;

iii. Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;

iv. Ensuring that testing undertaken on both the performance statement and the Statement of Financial Position includes a number of items selected on a random basis;

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

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 International Auditing Standards (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FUNDAMENTAL ASSET MANAGEMENT LIMITED


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 a Report of the Auditors 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.




Michael F Cox BSc FCA (Senior Statutory Auditor)
for and on behalf of Cox Costello & Horne
Chartered Accountants and Statutory Auditors
Batchworth Lock House
99 Church Street, Rickmansworth
WD3 1JJ

11 October 2024

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

STATEMENT OF COMPREHENSIVE INCOME (PROFIT AND LOSS)
FOR THE YEAR ENDED 30 JUNE 2024

30.6.24 30.6.23
Notes £ £ £ £

TURNOVER 4 1,327,998 1,313,206

Cost of sales 140,527 147,175
GROSS PROFIT 1,187,471 1,166,031

Administrative expenses 467,022 320,363
OPERATING PROFIT 6 720,449 845,668

Income from fixed asset investments 5,773 9,763
Interest receivable and similar income 6,069 2,150
11,842 11,913
732,291 857,581
Gain/(loss) on investment assets (21,066 ) (16,145 )
PROFIT BEFORE TAXATION 711,225 841,436

Tax on profit 8 176,364 187,705
PROFIT FOR THE FINANCIAL YEAR 534,861 653,731

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

534,861

653,731

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

STATEMENT OF FINANCIAL POSITION
30 JUNE 2024

30.6.24 30.6.23
Notes £ £ £ £
FIXED ASSETS
Tangible assets 10 65,164 -

CURRENT ASSETS
Debtors 11 274,694 269,446
Investments 12 271,001 423,371
Cash at bank 250,382 277,438
796,077 970,255
CREDITORS
Amounts falling due within one year 13 349,676 321,556
NET CURRENT ASSETS 446,401 648,699
TOTAL ASSETS LESS CURRENT LIABILITIES 511,565 648,699

PROVISIONS FOR LIABILITIES 16 25,295 17,290
NET ASSETS 486,270 631,409

CAPITAL AND RESERVES
Called up share capital 17 40,000 40,000
Capital redemption reserve 14,000 14,000
Retained earnings 432,270 577,409
SHAREHOLDERS' FUNDS 486,270 631,409

The financial statements were approved by the Board of Directors and authorised for issue on 11 October 2024 and were signed on its behalf by:





S Drabwell - Director


FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£ £ £ £
Balance at 1 July 2022 40,000 583,678 14,000 637,678
Total comprehensive income - 653,731 - 653,731
Dividends - (660,000 ) - (660,000 )
Balance at 30 June 2023 40,000 577,409 14,000 631,409
Total comprehensive income - 534,861 - 534,861
Dividends - (680,000 ) - (680,000 )
Balance at 30 June 2024 40,000 432,270 14,000 486,270

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

30.6.24 30.6.23
Notes £ £
Cash flows from operating activities
Cash generated from operations 19 798,192 774,510
Tax paid (179,787 ) (202,676 )
Net cash from operating activities 618,405 571,834

Cash flows from investing activities
Purchase of tangible fixed assets (108,607 ) -
Disposal/(purchase) of investments 131,304 40,301
Interest received 6,069 2,150
Dividends received 5,773 9,763
Net cash from investing activities 34,539 52,214

Cash flows from financing activities
Equity dividends paid (680,000 ) (660,000 )
Net cash from financing activities (680,000 ) (660,000 )

Decrease in cash and cash equivalents (27,056 ) (35,952 )
Cash and cash equivalents at beginning of
year

20

277,438

313,390

Cash and cash equivalents at end of year 20 250,382 277,438

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024


1. STATUTORY INFORMATION

Fundamental Asset Management Limited ('the company') provide services to fund management activities at Cardinal Place, Rickmansworth.. The company has offices at Cardinal Place, Park Road, Rickmansworth, Herts WD3 1RE and makes services primarily within the UK.

The company is a private company limited by shares and is incorporated in England. The address of its registered office is c/o Batchworth Lock House, 99 Church Street, Rickmansworth, WD3 1JJ.

2. STATEMENT OF COMPLIANCE

The company financial statements of Fundamental Asset Management Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ''The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland'' (''FRS 102'') and the Companies Act 2006.

3. ACCOUNTING POLICIES

Summary of significant accounting policies
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.

Basis of preparation
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in policy "critical accounting judgements and estimation uncertainty".

The functional and presentational currency of the company is pound sterling.

Going concern
The financial statements have been prepared on a going concern basis.

In making this assessment the directors have consider the foreseeable future, which is a period of at least 12 month from the date of signing of the Net Asset Statement.

The directors are not aware of any material uncertainties that cast doubt over the company's going concern status.

Critical accounting judgements and estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

a. Recognition of revenue (see policy "Revenue")
The company recognises revenue when (a) the amount of revenue can be measured reliably; (b) it is probable that future economic benefits will flow to the entity and (c) when the specific criteria relating to each of the company's sales channels have been met.

b. Recognition of deferred tax assets (see policy "Taxation")
Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Recognition, therefore, involves judgement regarding the prudent forecasting of future taxable profits of the business and in applying an appropriate risk adjustment factor. The final outcome of some of these items may give rise to material profit and loss and/or cash flow variances.

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


3. ACCOUNTING POLICIES - continued

Revenue
Revenue is measured at the fair value consideration received or receivable and represents amounts receivable for services provided in the normal course of business net of VAT and other taxes. Services comprise investment management services supplied and comprise advisory, management fees and commissions in relation to the management of third party investment portfolios.

Pension costs
The company makes contributes into the personal retirement schemes of certain staff. Contributions by the company and staff are determined by mutual agreement. Staff contract directly with the pension company, and assets of those schemes are held separately from those of the company. The company acts as agent in collecting and paying over staff pension contributions. Once the contributions have been paid, the company as employer has no further obligations.

The company's contributions are charged to the profit or loss in the period to which they relate. At the reporting date, outstanding contributions amounted to £80,000 (2023: £40,000).

Exceptional items
The financial statements have separately disclosed exceptional items where they represent material items and are not in the normal course of business.

Tangible fixed assets
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.
a. Depreciation and residual values
Depreciation on other assets is calculated, using the straight-line method, to allocate the depreciable amount to their residual values over their estimated useful lives, as follows:

- Office equipment- 25% on cost
- Furniture and fittings- 25% reducing balance
- Motor vehicles- 40% and 10% on cost

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

b. Derecognition
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss and included in ‘Other operating (losses)/gains’.

Taxation
Taxation for year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income (Profit and Loss).

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


3. ACCOUNTING POLICIES - continued

Investments
Investments which are held in an actively managed portfolios are classified as current asset investments.

Purchases and sales of financial instruments are recognised on the trade date, being the date on which the company commits itself to the purchase or sale. Financial instruments at FVPL are initially recognised at fair value, when the company becomes party to the contractual provisions of the instrument, with their associated transaction costs being charged immediately, when incurred, to profit or loss.

Subsequent to the initial recognition, financial assets and liabilities at FVPL are measured at fair value with the resultant gains and losses being taken to profit or loss. Financial assets are derecognised when the contractual rights to the cash flows from the asset expire, or when the company has transferred substantially all the risks and rewards of ownership. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value of assets and liabilities traded in an active market is based on quoted market prices at the close of trading on the reporting date. For quoted financial assets the valuation is based on the closing bid price.

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

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Final distributions to equity holders
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

Interim dividends are recognised when the directors have approved them and the earlier of their payment or the date when they were recognised in the company's accounting records.

Provisions and contingencies
a. Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations might be small.

In particular:
i. Restructuring provisions are recognised when the company has a detailed, formal plan for the restructuring and has raised a valid expectation in those affected by either starting to implement the plan or announcing its main features to those affected and therefore has a legal or constructive obligation to carry out the restructuring; and

ii. Provision is not made for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


3. ACCOUNTING POLICIES - continued

Provisions and contingencies - continued
b. Contingencies
Contingent liabilities are not recognised, except those acquired in a business combination. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

a. Financial assets
Other than equity investments held at fair value basic financial assets, including trade and other debtors, own cash and bank balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

b. Financial liabilities
Basic financial liabilities, including trade and other creditors are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

c. Derecognition of financial assets and liabilities
Financial assets are only derecognised when the contractual rights to receive cash flows from them have expired or when the croup has transferred substantially all risks and rewards of ownership. Financial liabilities are only derecognised when the obligation is discharged, cancelled or has expired.

d. Offsetting
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.

4. TURNOVER

In the opinion of the directors the disclosure of any information required by class of business and geographical markets would be seriously prejudicial to the interests of the company.

5. EMPLOYEES AND DIRECTORS
30.6.24 30.6.23
£ £
Wages and salaries 159,366 148,944
Social security costs 8,972 8,213
Other pension costs 80,000 40,000
248,338 197,157

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
30.6.24 30.6.23

Investment and fund management 4 4
Support 3 3
7 7

30.6.24 30.6.23
£ £
Directors' remuneration 18,192 18,192

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

The directors were awarded £40,000 each as a pension contribution for the year (2023 - £20,000 each). In addition, the directors received benefits in kind amounting to £10,769 (2023 - £9,142).

Directors’ and key management compensation
Key management are considered to be the directors.

6. OPERATING PROFIT

The operating profit is stated after charging:

30.6.24 30.6.23
£ £
Other operating leases 35,884 32,437
Depreciation - owned assets 43,443 -

7. AUDITORS' REMUNERATION
30.6.24 30.6.23
£ £
Fees payable to the company's auditors and their associates for the audit of the
company's financial statements

4,810

4,571
Auditors' remuneration for non audit work 690 630

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.6.24 30.6.23
£ £
Current tax:
UK corporation tax 168,359 179,787

Deferred tax 8,005 7,918
Tax on profit 176,364 187,705

UK corporation tax was charged at 20.50%) in 2023.

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.6.24 30.6.23
£ £
Profit before tax 711,225 841,436
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
25%)

177,806

210,359

Effects of:
Income not taxable for tax purposes (1,443 ) (2,441 )
Capital allowances in excess of depreciation (16,291 ) -
Unrealised investment losses 8,287 11,379
Deferred tax 8,005 7,918
Change in tax rates - (39,510 )
Total tax charge 176,364 187,705

On 24 May 2021, legislation was substantially enacted in the UK to increase the corporate tax rate to 25% (from 19%) with effect from 1 April 2023. From the same date, a ‘small profits rate’ of 19% will apply to profits up to £50,000. For businesses with profits between £50,000 and £250,000, tax will be charged at the main rate, subject to marginal relief provisions which will provide a gradual increase in the effective corporation tax rate.

9. DIVIDENDS
30.6.24 30.6.23
£ £
Ordinary shares of £1 each
Interim 680,000 660,000

10. TANGIBLE FIXED ASSETS
Furniture
Office and Motor
equipment fittings vehicles Totals
£ £ £ £
COST
At 1 July 2023 5,107 3,706 - 8,813
Additions - - 108,607 108,607
At 30 June 2024 5,107 3,706 108,607 117,420
DEPRECIATION
At 1 July 2023 5,107 3,706 - 8,813
Charge for year - - 43,443 43,443
At 30 June 2024 5,107 3,706 43,443 52,256
NET BOOK VALUE
At 30 June 2024 - - 65,164 65,164
At 30 June 2023 - - - -

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£ £
Trade debtors 232,374 236,379
Prepayments and accrued income 42,320 33,067
274,694 269,446

12. CURRENT ASSET INVESTMENTS
30.6.24 30.6.23
£ £
Listed investments 271,001 423,371
Market value of listed investments at 30 June 2024 - £ 271,001 (2023 - £ 423,371 ).

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£ £
Trade creditors 4,622 13,348
Tax 165,732 177,160
Social security and other taxes 2,046 1,737
VAT 55,893 54,242
Other creditors 6,603 6,396
Directors' current accounts 1,059 1,059
Accruals 113,721 67,614
349,676 321,556

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
30.6.24 30.6.23
£ £
Within one year 29,730 -
Between one and five years - 81,328
29,730 81,328

15. FINANCIAL INSTRUMENTS

The company has the following financial instruments:
30.6.24 30.6.23
£    £   
Financial assets measured at fair value 271,001 423,371

16. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£ £
Deferred tax 25,295 17,290

Deferred tax
£
Balance at 1 July 2023 17,290
Accelerated capital allowances 16,291
Listed investments fair value (8,286 )
Balance at 30 June 2024 25,295

FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


16. PROVISIONS FOR LIABILITIES - continued

The deferred tax provision relates entirely to unrealised gains on the investment portfolio.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £ £
40,000 Ordinary £1 40,000 40,000

18. RELATED PARTY DISCLOSURES

Dividends to directors have been aggregated to include dividends paid to close family.

Details of Key Management Compensation are disclosed in Note 5 'Employees and Directors', to the financial statements.

During the reporting period, the company received contracted professional services from a related party in the amount of £61,000 (2023 - £13,000). Both parties have joint key management personnel.

At the reporting date, the amount outstanding was £nil (2023 - £nil).

19. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.6.24 30.6.23
£ £
Profit before taxation 711,225 841,436
Depreciation charges 43,443 -
Gain on disposal of investments (12,080 ) (29,367 )
Loss on revaluation of investments 33,146 45,512
Finance income (11,842 ) (11,913 )
763,892 845,668
Increase in trade and other debtors (5,248 ) (25,355 )
Increase/(decrease) in trade and other creditors 39,548 (45,803 )
Cash generated from operations 798,192 774,510

20. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 June 2024
30.6.24 1.7.23
£ £
Cash and cash equivalents 250,382 277,438
Year ended 30 June 2023
30.6.23 1.7.22
£ £
Cash and cash equivalents 277,438 313,390


FUNDAMENTAL ASSET MANAGEMENT LIMITED (REGISTERED NUMBER: 05089880)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


21. ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.23 Cash flow At 30.6.24
£ £ £
Net cash
Cash at bank 277,438 (27,056 ) 250,382
277,438 (27,056 ) 250,382

Liquid resources
Current asset investments 423,371 (152,370 ) 271,001
423,371 (152,370 ) 271,001
Total 700,809 (179,426 ) 521,383