Caseware UK (AP4) 2023.0.135 2023.0.135 2023-07-01false00falsefalse 13329297 2023-07-01 2024-06-30 13329297 1 2023-07-01 2024-06-30 13329297 2022-07-01 2023-06-30 13329297 2024-06-30 13329297 2023-06-30 13329297 2022-07-01 13329297 d:Director1 2023-07-01 2024-06-30 13329297 d:RegisteredOffice 2023-07-01 2024-06-30 13329297 c:Buildings c:LongLeaseholdAssets 2023-07-01 2024-06-30 13329297 c:FurnitureFittings 2023-07-01 2024-06-30 13329297 c:ComputerEquipment 2023-07-01 2024-06-30 13329297 c:CurrentFinancialInstruments 2024-06-30 13329297 c:CurrentFinancialInstruments 2023-06-30 13329297 c:CurrentFinancialInstruments c:WithinOneYear 2024-06-30 13329297 c:CurrentFinancialInstruments c:WithinOneYear 2023-06-30 13329297 c:ShareCapital 2024-06-30 13329297 c:ShareCapital 2023-06-30 13329297 c:ShareCapital 2022-07-01 13329297 c:SharePremium 2024-06-30 13329297 c:SharePremium 2023-06-30 13329297 c:SharePremium 2022-07-01 13329297 c:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 13329297 c:RetainedEarningsAccumulatedLosses 2024-06-30 13329297 c:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 13329297 c:RetainedEarningsAccumulatedLosses 2023-06-30 13329297 c:RetainedEarningsAccumulatedLosses 2022-07-01 13329297 c:AcceleratedTaxDepreciationDeferredTax 2024-06-30 13329297 c:AcceleratedTaxDepreciationDeferredTax 2023-06-30 13329297 c:TaxLossesCarry-forwardsDeferredTax 2024-06-30 13329297 c:TaxLossesCarry-forwardsDeferredTax 2023-06-30 13329297 c:RetirementBenefitObligationsDeferredTax 2024-06-30 13329297 c:RetirementBenefitObligationsDeferredTax 2023-06-30 13329297 c:OtherDeferredTax 2024-06-30 13329297 c:OtherDeferredTax 2023-06-30 13329297 d:OrdinaryShareClass1 2023-07-01 2024-06-30 13329297 d:OrdinaryShareClass1 2024-06-30 13329297 d:OrdinaryShareClass1 2023-06-30 13329297 d:FRS102 2023-07-01 2024-06-30 13329297 d:Audited 2023-07-01 2024-06-30 13329297 d:FullAccounts 2023-07-01 2024-06-30 13329297 d:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 13329297 c:Subsidiary1 2023-07-01 2024-06-30 13329297 c:Subsidiary1 1 2023-07-01 2024-06-30 13329297 d:Consolidated 2024-06-30 13329297 d:ConsolidatedGroupCompanyAccounts 2023-07-01 2024-06-30 13329297 2 2023-07-01 2024-06-30 13329297 6 2023-07-01 2024-06-30 13329297 e:PoundSterling 2023-07-01 2024-06-30 13329297 c:UnlistedNon-exchangeTraded 2023-06-30 13329297 c:UnlistedNon-exchangeTraded 2024-06-30 xbrli:shares iso4217:GBP xbrli:pure


















Forada Investments Limited
























Annual report and financial statements



For the year ended 30 June 2024



Registered number: 13329297

 
Forada Investments Limited


Company Information


Director
Jonathan Ridgway 




Registered number
13329297



Registered office
C/O Buzzacott LLP
130 Wood Street

London

EC2V 6DL




Independent auditor
Buzzacott LLP

130 Wood Street

London

EC2V 6DL





 
Forada Investments Limited


Contents



Page
Director's report
 
1 - 2
Group strategic report
 
3
Independent auditor's report
 
4 - 7
Consolidated statement of comprehensive income
 
8
Consolidated statement of financial position
 
9
Company statement of financial position
 
10
Consolidated statement of changes in equity
 
11
Company statement of changes in equity
 
12
Consolidated statement of cash flows
 
13
Notes to the financial statements
 
14 - 27


 
Forada Investments Limited

 
Director's report
For the year ended 30 June 2024

The director presents his report together with the consolidated financial statements of Forada Investments Limited ('the company') and its subsidiary (together 'the group') for the year ended 30 June 2024.
Principal activity
The principal activity of the company in the year was to hold investments, and the principal activity of the group in the year was the provision of investment management services.

Results and dividends

The profit for the year, after taxation, amounted to £8,062,413 (2023 - £18,294,420).

During the period, the director recommended a payment of a dividend of £14,451 (2023 - £nil).

Director

The director who served throughout the year was:

Jonathan Ridgway 

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 
Page 1

 
Forada Investments Limited
 
Director's report (continued)
For the year ended 30 June 2024

Matters covered in the Strategic report
The company has chosen, in accordance with s.414C(11) of the Companies Act 2006, to set out in the company's Strategic
report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008, and Part 2 of The Companies (Miscellaneous Reporting) Regulations 2018 to be contained in the
Directors' report. It has done so in respect of future developments and risk management.
 
Disclosure of information to auditor

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the company and the Group's auditor is unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditor is aware of that information.

Auditor

The auditor, Buzzacott LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act
2006.

This report was approved and signed by:
 





Jonathan Ridgway
Director

Date: 21 October 2024

Page 2

 
Forada Investments Limited


Group strategic report
For the year ended 30 June 2024

Introduction
 
The director presents his Group strategic report for the year ended 30 June 2024.

Business review
 
The director is comfortable with the progress of the business this year and consider that the group continues to
offer investment management services which are attractive to existing and new clients. In the year, the group grew to 10 members of staff.
Forada has adopted a Responsible Investment Policy which considers the group's impact on the environment and the
community.
The director is focused on continuing to deliver investment performance for Forada’s clients, and to increase the
investor base in the Forada Funds.

Principal risks and uncertainties
 
The principal risks faced by the business relate to the investment performance of the investment manager when
considered against peer organisations and in absolute terms.
The group is also subject to foreign exchange risk, in particular for the rate of Pounds Sterling versus the US Dollar, as it is
based in the United Kingdom and many of its principal expenses are denominated in Pounds Sterling, whilst its fees
earned are denominated in US Dollars.

Financial key performance indicators
 
Forada considers its assets under management and year to date performance in each share class open to investors as key
performance indicators.
In addition, Forada considers its regulatory capital as a multiple of its regulatory capital requirement to be a key indicator
of financial health. This was 3.1 on 30 June 2024.

Director's statement of compliance with duty to promote the success of the Group
 
The director has complied with s172 of the Companies Act 2006: the duty to promote the success of the company by
carefully considering the likely consequences of any decision in the long term, taking advice where necessary in order to
balance the interests of the strategy’s investors and employees, and by recognising the key importance of the firm’s
reputation in its relationships with suppliers. Dialogue with key stakeholders as well as an appreciation of the evolving
regulatory and competitive environment in which the firm operates are inputs into the Director’s decision making. Forada has documented governance and decision-making procedures to assist with this. The Director considers that the firm's
Responsible Investment Policy lays out how the firm balances these responsibilities.


This report was approved by the director on 21 October 2024



Jonathan Ridgway
Director

Page 3

 
 
img48b0.png

Independent auditor's report to the members of Forada Investments Limited
For the year ended 30 June 2024

Opinion


We have audited the financial statements of Forada Investments Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent company's affairs as at 30 June 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's 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 or the 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 director 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 director is responsible for the other information contained within the Annual reportOur 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.
 
Page 4

 
img5f6b.png

Independent auditor's report to the members of Forada Investments Limited (continued)
For the year ended 30 June 2024

Other information (continued)
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.


Opinion 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 Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's report 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 Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's 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:


adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 1, the director is 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 director determines 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 director is responsible for assessing the Group's and 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 director either intends to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
img5df6.png

Independent auditor's report to the members of Forada Investments Limited (continued)
For the year ended 30 June 2024

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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud
and non-compliance with laws and regulations, was as follows:
 
the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including
knowledge specific to auditing regulated investment management firms;
we made enquiries of management as to where they considered there was susceptibility to fraud, and their
knowledge of actual, suspected and alleged fraud;
we identified the laws and regulations that could reasonably be expected to have a material effect on the financial
statements of the company through discussions with the director and other management at the planning stage, and
from our knowledge and experience of regulated investment management firms;
the audit team held a discussion to identify any particular areas that were considered to be susceptible to
misstatement, including with respect to fraud and non-compliance with laws and regulations; and
we focused our planned audit work on specific laws and regulations which we considered may have a direct material
effect on the financial statements or the operations of the company including Companies Act 2006, The Financial
Services and Markets Act 2000 and taxation legislation.

We assessed the extent of compliance with the laws and regulations identified above through:
 
making enquiries of management;
reviewing legal expenditure throughout the year for any potential litigation or claims; and
considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws
and regulations

To address the risk of fraud through management bias and override of controls, we:
 
determined the susceptibility of the group to management override of controls by checking the implementation of
controls and enquiring of individuals involved in the financial reporting process;
reviewed journal entries at the year end to identify unusual transactions;
performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any large
variances from the prior year;
reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias
on the part of the group's management;
tested the existence, completeness and cut-off of turnover in the subsidiary by obtaining confirmations from third
party administrators of the management and performance fees earned during the year;
tested the completeness and existence of dividends received by the company by reviewing board meeting minutes of
the subsidiary as well as bank statements; and
Page 6

 
img5dcd.png

Independent auditor's report to the members of Forada Investments Limited (continued)
For the year ended 30 June 2024

Auditor's responsibilities for the audit of the financial statements (continued)
 
carried out substantive testing to check the occurrence and cut-off of expenditure.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included:
 
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and the Financial Conduct Authority.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's report.


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 2006Our 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.





Jonathan West (Senior statutory auditor)
for and on behalf of
Buzzacott LLP
Statutory Auditor
130 Wood Street
London
EC2V 6DL

21 October 2024
Page 7

 
Forada Investments Limited


Consolidated statement of comprehensive income
For the year ended 30 June 2024

2024
2023
Note
£
£

  

Turnover
 4 
19,812,868
32,484,944

Cost of sales
  
(1,975,559)
(2,457,923)

Gross profit
  
17,837,309
30,027,021

Administrative expenses
  
(7,778,134)
(7,001,302)

Fair value movements
  
1,205,667
(358,541)

Operating profit
 5 
11,264,842
22,667,178

Interest and similar income
 9 
52,069
20,315

Profit before tax
  
11,316,911
22,687,493

Tax on profit
 10 
(3,254,498)
(4,393,073)

Profit for the financial year
  
8,062,413
18,294,420

Profit for the year attributable to:
  

Owners of the parent company
  
8,062,413
18,294,420

  
8,062,413
18,294,420

All amounts relate to continuing operations.

There was no other comprehensive income for 2024 or 2023.

The notes on pages 14 to 27 form part of these financial statements.

Page 8

 
Forada Investments Limited - Registered number: 13329297

Consolidated statement of financial position
As at 30 June 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
34,017
47,016

Investments
 12 
29,506,421
18,000,854

  
29,540,438
18,047,870

Current assets
  

Debtors: amounts falling due within one year
 13 
652,601
2,596,046

Current asset investments
 14 
-
1,900,669

Cash at bank and in hand
 15 
3,505,354
1,264,365

  
4,157,955
5,761,080

Creditors: amounts falling due within one year
 16 
(1,839,765)
(391,593)

Net current assets
  
 
 
2,318,190
 
 
5,369,487

Deferred taxation
 17 
(398,104)
(4,795)

  
 
 
(398,104)
 
 
(4,795)

Net assets
  
31,460,524
23,412,562


Capital and reserves
  

Called up share capital 
 18 
2
2

Share premium account
 20 
1,191,392
1,191,392

Other reserves
 20 
(1,191,392)
(1,191,392)

Profit and loss account
 20 
31,460,522
23,412,560

  
31,460,524
23,412,562


The financial statements were approved and authorised for issue by the director and were signed on 21 October 2024.




Jonathan Ridgway
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 9

 
Forada Investments Limited - Registered number: 13329297

Company statement of financial position
As at 30 June 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 12 
31,697,813
20,192,246

  
31,697,813
20,192,246

Current assets
  

Debtors: amounts falling due within one year
 13 
769
1

Creditors: amounts falling due within one year
 16 
(26,298)
(20,730)

Net current liabilities
  
 
 
(25,529)
 
 
(20,729)

Total assets less current liabilities
  
31,672,284
20,171,517

  

Provisions for liabilities
  

Deferred taxation
 17 
(394,123)
-

  
 
 
(394,123)
 
 
-

Net assets
  
31,278,161
20,171,517


Capital and reserves
  

Called up share capital 
 18 
2
2

Share premium account
 20 
1,191,392
1,191,392

Profit and loss account brought forward
  
18,980,123
4,786,058

Profit for the year
  
11,121,095
14,194,065

Dividends declared

  

(14,451)
-

Profit and loss account carried forward
  
30,086,767
18,980,123

  
31,278,161
20,171,517


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 October 2024.


Jonathan Ridgway
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 10

Forada Investments Limited
 
  
 


Consolidated statement of changes in equity
For the year ended 30 June 2024



Called up share capital
Share premium account
Other reserves
Profit and loss account
Equity attributable to owners of parent company
Total equity


£
£
£
£
£
£



At 1 July 2022 (unaudited)
2
1,191,392
(1,191,392)
5,118,140
5,118,142
5,118,142





Profit for the year
-
-
-
18,294,420
18,294,420
18,294,420





At 1 July 2023
2
1,191,392
(1,191,392)
23,412,560
23,412,562
23,412,562





Profit for the year
-
-
-
8,062,413
8,062,413
8,062,413


Dividends
-
-
-
(14,451)
(14,451)
(14,451)



At 30 June 2024
2
1,191,392
(1,191,392)
31,460,522
31,460,524
31,460,524



The notes on pages 14 to 27 form part of these financial statements.

Page 11


Forada Investments Limited
 
  
 


Company statement of changes in equity
For the year ended 30 June 2024



Called up share capital
Share premium account
Profit and loss account
Total equity


£
£
£
£



At 1 July 2022 (unaudited)
2
1,191,392
4,786,058
5,977,452





Profit for the year
-
-
14,194,065
14,194,065





At 1 July 2023
2
1,191,392
18,980,123
20,171,517





Profit for the year
-
-
11,121,095
11,121,095


Dividends
-
-
(14,451)
(14,451)



At 30 June 2024
2
1,191,392
30,086,767
31,278,161



The notes on pages 14 to 27 form part of these financial statements.

Page 12
 
Forada Investments Limited


Consolidated statement of cash flows
For the year ended 30 June 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
8,062,413
18,294,420

Adjustments for:

Depreciation of tangible assets
38,864
25,661

Interest received
(52,069)
(20,315)

Taxation charge
3,254,498
4,393,073

Decrease/(increase) in debtors
1,207,403
(1,323,506)

Increase in creditors
477,072
201,593

Net fair value (gains)/losses recognised in P&L
(1,262,221)
358,541

Corporation tax (paid)
(1,154,049)
(6,054,945)

Net cash generated from operating activities

10,571,911
15,874,522


Cash flows from investing activities

Purchase of tangible fixed assets
(25,863)
(59,018)

Interest received
52,069
20,315

Purchase of unlisted investments
(10,299,900)
(14,170,965)

Purchase of treasury gilts
-
(1,900,525)

Disposal of treasury gilts
1,957,223
-

Net cash from investing activities

(8,316,471)
(16,110,193)

Cash flows from financing activities

Dividends paid
(14,451)
-

Net cash used in financing activities
(14,451)
-

Net increase/(decrease) in cash and cash equivalents
2,240,989
(235,671)

Cash and cash equivalents at beginning of year
1,264,365
1,500,036

Cash and cash equivalents at the end of year
3,505,354
1,264,365


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,505,354
1,264,365

3,505,354
1,264,365


The notes on pages 14 to 27 form part of these financial statements.

Page 13

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024

1.


General information

Forada Investment Limited is a private limited company by shares and incorporated in England & Wales on 12 April 2021. The address of the registered office is C/O Buzzacott LLP, 130 Wood Street, London, EC2V 6DL and it's principal place of business is 20 North Audley Street, London, W1K 6LX.

2.Significant accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified
within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, 'The
Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

  
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial
statements, as permitted by the FRS 102:
 
the requirements of Section 7 Statement of Cash Flows;

This information is included in these consolidated financial statements.

 
2.3

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiary (together 'the group') as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations classed as group reconstructions, using the merger accounting method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are recognised at their carrying values at the acquisition date. The results and cash flows of acquired operations are included in the Consolidated statement of comprehensive income and the Consolidated statement of cash flows from the beginning of the financial year in which the combination occurred. They are deconsolidated from the date control ceases. Comparative information is restated by including the total comprehensive income for all the combining entities for the previous reporting periods and their statement of financial position for the previous reporting dates.

Page 14

 
Forada Investments Limited

Notes to the financial statements
For the year ended 30 June 2024

2.Significant accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.5

Turnover

Turnover represents fees receivable from investment management services, in accordance with the Investment Management Agreements. Management fees are earned monthly, and performance fees are earned when they crystallise.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 15

 
Forada Investments Limited

Notes to the financial statements
For the year ended 30 June 2024

2.Significant accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 16

 
Forada Investments Limited

Notes to the financial statements
For the year ended 30 June 2024

2.Significant accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over 5 years
Fixtures and fittings
-
Over 4 years
Computer equipment
-
Over 3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Investments

Investments in subsidiaries are measured at cost less accumulated impairment, and was initially recorded using group reconstruction relief.
Unlisted investments are investments in a fund, and are revalued to market value at each reporting date. The fair value movement is recognised in the profit or loss.

 
2.12

Debtors

Short term debtors are measured at transaction price less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.14

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at
fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective
interest method.

 
2.15

Financial instruments

The company only enters into transactions that result in the recognition of basic financial instruments like
trade debtors, creditors and loams to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.
 
Page 17

 
Forada Investments Limited

Notes to the financial statements
For the year ended 30 June 2024

2.Significant accounting policies (continued)


2.15
Financial instruments (continued)

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the reporting date.

 
2.16

Dividends

Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the companies accounting policies, which are described in note 2, the director is required to
make judgements, estimates and assumptions which affect the amounts reported for assets and liabilities as at the
period-end date and amounts reported for revenues and expenses during the period. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. However, the
nature of estimation means that actual outcomes could differ from those estimates.
There were no significant estimates or judgements made in the period.


4.


Turnover

The whole of the turnover is attributable to the group's principal activity, of providing investment management
services.

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Operating lease rentals
202,139
142,460

Exchange differences
(165,396)
508,767

Page 18

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024

6.


Auditor's remuneration

During the year, the Group obtained the following services from the company's auditor and its associates:


2024
2023
£
£

Fees payable to the company's auditor for the audit of the consolidated and parent company's financial statements
5,250
5,000

Fees payable to the company's auditor and its associates in respect of:

The auditing of accounts of subsidiaries of the company
13,500
13,000

Audit-related assurance services
4,000
2,000

Taxation compliance services
10,700
14,157

All non-audit services not included above
100,789
60,525


7.


Employees

Staff costs, including director's remuneration, during the year were as follows:




2024
2023
£
£


Wages and salaries
5,232,240
3,974,381

Social security costs
717,084
553,906

Cost of defined contribution scheme
60,328
35,867

6,009,652
4,564,154


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Management
2
2



Operations
8
4

10
6


8.


Director's remuneration



The highest paid director received remuneration of £1,365,000 (2023 - £907,500).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £nil (2023 - £nil).

Page 19

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024

9.


Interest income

2024
2023
£
£


Other interest income
52,069
20,315

52,069
20,315


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
2,462,091
4,384,872

Adjustments in respect of previous periods
399,098
6,127


2,861,189
4,390,999


Total current tax
2,861,189
4,390,999

Deferred tax


Origination and reversal of timing differences
(11,610)
2,074

Capital gains
404,919
-

Total deferred tax
393,309
2,074


Tax on profit
3,254,498
4,393,073
Page 20

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
11,316,911
22,687,493


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
2,829,228
4,310,624

Effects of:


Fixed asset differences
2,989
2,285

Expenses not deductible for tax purposes
(13,705)
-

Income not taxable for tax purposes
(301,417)
69,494

Chargeable gains
301,417
-

Movement in deferred tax not recognised
92,706
-

Adjustments to tax charge in respect of prior periods
339,098
6,127

Remeasurement of deferred tax for changes in tax rates
4,182
(780)

Dividends from UK companies
-
5,323

Total tax charge for the year
3,254,498
4,393,073


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024

11.


Tangible fixed assets

Group






Leasehold improvements
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 July 2023
36,791
4,234
54,377
95,402


Additions
1,145
-
25,610
26,755


Disposals
-
(892)
-
(892)



At 30 June 2024

37,936
3,342
79,987
121,265



Depreciation


At 1 July 2023
15,330
3,035
30,021
48,386


Charge for the year
21,747
406
16,858
39,011


Disposals
-
(149)
-
(149)



At 30 June 2024

37,077
3,292
46,879
87,248



Net book value



At 30 June 2024
859
50
33,108
34,017



At 30 June 2023
21,461
1,199
24,356
47,016

Page 22

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024

12.


Fixed asset investments

Group





Unlisted investments

£



Cost or valuation


At 1 July 2023
18,000,854


Additions
10,299,900


Revaluations
1,205,667



At 30 June 2024
29,506,421




Company





Unlisted investments
Investments in subsidiary
Total

£
£
£



Cost or valuation


At 1 July 2023
18,000,854
2,191,392
20,192,246


Additions
10,299,900
-
10,299,900


Revaluations
1,205,667
-
1,205,667



At 30 June 2024
29,506,421
2,191,392
31,697,813





Subsidiary undertaking


The following was a subsidiary undertaking of the company included in these financial statements:

Name

Registered office

Class of shares

Holding

Forada Limited
C/O Buzzacott LLP, 130 Wood Street, London, EC2V 6DL
Ordinary
100%






Page 23

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024

13.


Debtors


Group

Group

Company

Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
-
1,224,789
-
-

Amounts owed by group undertakings
3,959
7,148
1
1

Other debtors
55,240
33,168
-
-

Prepayments and accrued income
561,438
535,750
768
-

Tax recoverable
31,964
795,191
-
-

652,601
2,596,046
769
1



14.


Current asset investments

Group
Group
2024
2023
£
£

Unlisted investments
-
1,900,669

-
1,900,669



15.


Cash and cash equivalents

Group

Group
2024
2023
£
£

Cash at bank and in hand
3,505,354
1,264,365

3,505,354
1,264,365


Page 24

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024

16.


Creditors: amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
199,084
45,511
-
2,220

Amounts owed to group undertakings
-
-
9,936
3,570

Corporation tax
971,100
-
-
-

Other taxation and social security
64,008
52,272
-
-

Other creditors
8,587
6,375
-
-

Accruals and deferred income
596,986
287,435
16,362
14,940

1,839,765
391,593
26,298
20,730



17.


Deferred taxation


Group



2024


£






At beginning of year
(4,795)


Charged to profit or loss
(393,309)



At end of year
(398,104)

Company


2024


£






Charged to profit or loss
(394,123)



At end of year
(394,123)

Page 25

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024
 
17.Deferred taxation (continued)

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Fixed asset timing differences
(6,128)
(6,389)
-
-

Capital gains
(404,919)
-
(404,919)
-

Short term timing differences
2,147
1,594
-
-

Losses and other deductions
10,796
-
10,796
-

(398,104)
(4,795)
(394,123)
-


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2 (2023 - 2) Ordinary shares of £1.00 each
2
2



19.


Analysis of net debt

An analysis of net debt has not been presented as all of the group's cash flows relate to movements in cash and the group has no items to include in such analysis other than the cash flows in the Consolidated statement of cash flows.


20.


Reserves

Share premium
The share premium account includes all amounts above the nominal value received for the shares issued.
Profit and loss account
The profit and loss account includes current and prior periods' retained earnings.
Other reserves
Other reserves is the difference between the parent's investment in the subsidiary and the nominal value of the subsidiary's share capital, which creates a difference upon consolidation. This difference arose when the company purchased Forada Limited, from its own immediate parent undertaking, by issuing 1 share with a nominal value of £1.


21.


Contingent liabilities

There were no contingent liabilities at 30 June 2024 or 30 June 2023.

Page 26

 
Forada Investments Limited

 
Notes to the financial statements
For the year ended 30 June 2024

22.


Capital commitments

There were no capital commitments at 30 June 2024 or 30 June 2023.


23.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group  in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £60,328 (2023 - £35,867) . Contributions totalling £8,587 (2023 - £6,375) were payable to the fund at the reporting date and are included in creditors.


24.


Commitments under operating leases

At 30 June 2024, the group was committed to make lease payments under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
51,975
49,500

51,975
49,500

The company had no commitments under non-cancellable operating leases at the reporting date.


25.


Controlling party

The immediate parent undertaking is Forada Services Limited.
The ultimate controlling party is Jonathan Ridgway.

Page 27