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Company Information
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Contents
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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 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).
The director who served throughout the year was:
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.
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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.
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:
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Group strategic report
For the year ended 30 June 2024
The director presents his Group strategic report for the year ended 30 June 2024.
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.
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.
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.
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
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Independent auditor's report to the members of Forada Investments Limited
For the year ended 30 June 2024
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 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).
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.
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.
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 report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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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.
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.
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.
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Independent auditor's report to the members of Forada Investments Limited (continued)
For the year ended 30 June 2024
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
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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.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
130 Wood Street
EC2V 6DL
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Consolidated statement of comprehensive income
For the year ended 30 June 2024
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Consolidated statement of financial position
As at
The financial statements were approved and authorised for issue by the director and were signed on 21 October 2024.
The notes on pages 14 to 27 form part of these financial statements.
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Company statement of financial position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 14 to 27 form part of these financial statements.
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