Company registration number 06077156 (England and Wales)
NEW EUROPE ADVISERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
NEW EUROPE ADVISERS LIMITED
COMPANY INFORMATION
Director
Mark Thaddeus Otto
Company number
06077156
Registered office
5th Floor
3 Dorset Rise
London
EC4Y 8EN
Auditor
TC Group
5th Floor
3 Dorset Rise
London
EC4Y 8EN
Bankers
Coutts & Co
440 The Strand
London
WC2R 0QS
NEW EUROPE ADVISERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 18
The following pages do not form part of the statutory financial statements
Unaudited MIFIDPRU 8 Remuneration Disclosures
19
Detailed profit and loss statement
20
NEW EUROPE ADVISERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The director presents the strategic report for the year ended 31 July 2024.
Fair review of the business
The year under review was the company's seventeenth period of trading. The company's income during the accounting period was derived from retainer income received from the company's Appointed Representatives. The company recorded a profit after tax for the year of £4,497 (2023: £3,276).
The company relies on its regular retainer and fee income to provide a base from which it can support future individual corporate finance mandates. This ensures that its ongoing operating costs are mostly covered by regular income which in turn means that the unpredictable and "lumpy" earnings associated with corporate finance activity do not cause any capital shortfall or destabilising effects on the balance sheet.
However, it should be borne in mind that the Central and Eastern Europe is no longer the fertile ground for desirable mandates that it was and the European Union no longer allows marketing access to UK Authorised MiFID firms and as a result the company is searching in new geographical areas.
By definition, some of the emerging markets that the company operates in have governance standards that fall below those in the United Kingdom. As a result, the director remains ever vigilant to the possibility that the company could be engaged by entities that operate to different standards than those used in the United Kingdom and in general acts with great caution when taking on new clients or relationships. This has resulted in overall turnover being much lower than it may have been should a less scrupulous approach have been taken.
Principal risks and uncertainties
The director considers that the key financial risk exposures faced by the company relate to the need to maintain sufficient capital to satisfy regulatory capital requirements and working capital needs. The director has expressed his willingness to invest capital into the business if necessary in the light of uncertainties regarding income in the future periods. The company does not take principal positions which would expose it to material credit risk and/or position risk nor does it have a material exposure to foreign exchange movements.
In determining the company's risks, the director also determines how those risks may be mitigated and assesses on an on-going basis the arrangements to manage those risks.
The company's financial risk management objectives are there to minimise the key financial risks through having clearly defined terms of business with counterparties and regular monitoring of cash flow and management accounts. This helps to ensure that regulatory capital requirements are not breached and the company maintains adequate working capital.
Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The director is involved in the day to day running of the company and so the risk of losses due to insufficient operations is minimal.
Reputational risk
Reputational risk arises from the company’s dependence on its good reputation both for ongoing and generating future business. Such risk can arise from poor performance or communication or from external public criticism or regulatory censure. The director has taken all reasonable steps to protect the company's reputation and ensures that the company remains compliant with the Financial Conduct Authority (FCA) regulations.
Financial risk management
The company's principal financial instrument is its bank balance. The main purpose of this instrument is to fund the company's operations, regulatory capital and working capital requirements.
Liquidity risk
Liquidity risk is managed by ensuring sufficient funds are available to meet liabilities as they fall due. The director regularly monitors cash flow and management accounts in order to ensure regulatory capital requirements are not breached.
NEW EUROPE ADVISERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Interest rate risk
The company's financial assets are not materially exposed to interest rate risk. The company has sufficient cash resources and is therefore not at risk from increases in interest rates.
Credit risk
The company is not exposed materially to credit risk. The company's cash deposits are held with a long established financial institution and are covered by the UK deposit guarantee scheme.
Key performance indicators
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Live mandates in the year | | | | | |
Section 172 statement
The director of the company always endeavours to act in a way to promote the success of the company for the benefit of its stakeholders as a whole. In doing so, he considers the likely consequence of any decisions in the long-term, having regard to an approach that is fair and equitable to all stakeholders of the company.
Underlying their decision-making process, the director is mindful of how the company’s business operations impact the community and environment. The director’s overarching responsibility is to maintain a reputation for high standards of business conduct and seek to build strong business relationships with suppliers, customers and other key counterparties.
The shareholders of the company are its key stakeholders.
During the year under review, there were no key decisions made that could impact the company's shareholders or other potential interested parties.
Other information and explanations
In accordance with the rules of the Financial Conduct Authority, the company has published information on its risk management objectives and policies on its regulatory capital requirements and resources. Details of the company's unaudited MIFIDPRU 8 remuneration disclosures are included on page 19 as an appendix to these financial statements.
Mark Thaddeus Otto
Director
17 October 2024
NEW EUROPE ADVISERS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company during the period under review continued to be the provision of oversight services to its Appointed Representatives.
The company is also actively pursuing opportunities to provide other investment business services within the scope of its regulatory permissions.
The company's activities are regulated by the Financial Conduct Authority.
Results and dividends
The results for the year are set out on page 8.
The company paid no dividends during the current or prior year.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mark Thaddeus Otto
Auditor
The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies 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 company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of financial risk management and objectives with regard financial instruments.
NEW EUROPE ADVISERS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
Statement of disclosure to auditor
So far as the director is aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the director has taken all the necessary steps that he ought to have taken as director in order to make himself aware of all relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
Mark Thaddeus Otto
Director
17 October 2024
NEW EUROPE ADVISERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW EUROPE ADVISERS LIMITED
- 5 -
Opinion
We have audited the financial statements of New Europe Advisers Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 July 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audittrue:
• the information given in the 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 strategic report and the director's report have been prepared in accordance with applicable legal requirements.
NEW EUROPE ADVISERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW EUROPE ADVISERS LIMITED
- 6 -
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 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, 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the Director's Responsibilities Statement set out on page 3, 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 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 company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102, the Companies Act 2006) and the relevant Financial Conduct Authority's (FCA) rules and regulations relating to its operations, including those relating to the oversight of Appointed Representatives. Other applicable laws and regulations include the direct and indirect tax compliance regulation in the United Kingdom.
We understood how the company is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation including policy and procedures manuals and correspondence with regulatory bodies.
NEW EUROPE ADVISERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW EUROPE ADVISERS LIMITED
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested completeness of income through substantive tests performed, analytical review procedures and cut off tests on the revenue recognised, vouching to supporting documentation where applicable.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance and review of legal and professional expenses.
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Mark Bailey FCA CTA (Senior Statutory Auditor)
For and on behalf of TC Group
17 October 2024
Accountants
Statutory Auditor
5th Floor
3 Dorset Rise
London
EC4Y 8EN
NEW EUROPE ADVISERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
49,539
67,570
Administrative expenses
(44,713)
(62,416)
Operating profit
4
4,826
5,154
Investment income
1,548
Profit before taxation
6,374
5,154
Taxation
8
(1,877)
(1,878)
Profit for the financial year
4,497
3,276
Total comprehensive income for the year
4,497
3,276
The statement of comprehensive income been prepared on the basis that all operations are continuing operations.
NEW EUROPE ADVISERS LIMITED
STATEMENT OF FINANCIAL POSITION
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
1,089
1,722
Current assets
Trade and other receivables
10
6,993
12,221
Cash and cash equivalents
67,750
56,474
74,743
68,695
Current liabilities
11
(11,233)
(11,315)
Net current assets
63,510
57,380
Net assets
64,599
59,102
Equity
Called up share capital
13
64,000
63,000
Retained earnings
599
(3,898)
Total equity
64,599
59,102
The financial statements were approved and signed by the director and authorised for issue on 17 October 2024
Mark Thaddeus Otto
Director
Company registration number 06077156 (England and Wales)
NEW EUROPE ADVISERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 August 2022
63,000
(7,174)
55,826
Year ended 31 July 2023:
Profit and total comprehensive income
-
3,276
3,276
Balance at 31 July 2023
63,000
(3,898)
59,102
Year ended 31 July 2024:
Profit and total comprehensive income
-
4,497
4,497
Issue of share capital
13
1,000
-
1,000
Balance at 31 July 2024
64,000
599
64,599
NEW EUROPE ADVISERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
606
6,148
Income taxes paid
(1,878)
(1,123)
Net cash (outflow)/inflow from operating activities
(1,272)
5,025
Investing activities
Purchase of property, plant and equipment
(1,291)
Repayment of loans
10,000
(10,000)
Interest received
1,548
Net cash generated from/(used in) investing activities
11,548
(11,291)
Financing activities
Proceeds from issue of shares
1,000
Net cash generated from/(used in) financing activities
1,000
-
Net increase/(decrease) in cash and cash equivalents
11,276
(6,266)
Cash and cash equivalents at beginning of year
56,474
62,740
Cash and cash equivalents at end of year
67,750
56,474
NEW EUROPE ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
1
Accounting policies
Company information
New Europe Advisers Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor, 3 Dorset Rise, London, EC4Y 8EN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in pound sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound sterling.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company receives sufficient income to cover its key administrative expenses and the director is willing to support the company should it be required.
Accordingly, the director continues to adopt the going concern basis in preparing the annual report and accounts.
1.3
Revenue
Fee income represents revenue earned under contracts for the provision of services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Office furniture
25% straight line
Computer equipment
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of comprehensive income.
1.5
Cash and cash equivalents
Cash and cash equivalents is made up of deposits held at call with banks.
NEW EUROPE ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which includes trade and other receivables and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of comprehensive income.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the statement of comprehensive income.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including other payables that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
NEW EUROPE ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
During the current or prior year, the director was not required to make estimates or assumptions that required a high level of judgement or complexity.
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Financial services
49,539
67,570
NEW EUROPE ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
3
Revenue
(Continued)
- 15 -
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
49,539
34,570
United States
-
33,000
49,539
67,570
2024
2023
£
£
Other revenue
Interest income
1,548
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned property, plant and equipment
633
391
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
3,000
3,000
For other services
All other non-audit services
3,100
2,975
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Director
1
1
NEW EUROPE ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
6
Employees
(Continued)
- 16 -
The remuneration for the year comprised:
2024
2023
£
£
Wages and salaries
24,000
16,000
Social security costs
2,056
421
Pension costs
26,000
26,056
42,421
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
24,000
16,000
Company pension contributions to defined contribution schemes
-
26,000
24,000
42,000
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,877
1,878
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
6,374
5,154
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
1,211
979
Tax effect of expenses that are not deductible in determining taxable profit
666
1,144
Permanent capital allowances in excess of depreciation
(245)
Taxation charge for the year
1,877
1,878
NEW EUROPE ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
9
Property, plant and equipment
Office furniture
Computer equipment
Total
£
£
£
Cost
At 1 August 2023 and 31 July 2024
11,316
6,260
17,576
Depreciation
At 1 August 2023
11,042
4,812
15,854
Depreciation charged in the year
219
414
633
At 31 July 2024
11,261
5,226
16,487
Carrying amount
At 31 July 2024
55
1,034
1,089
At 31 July 2023
274
1,448
1,722
10
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
6,000
1,320
Other receivables
10,000
Prepayments and accrued income
993
901
6,993
12,221
11
Current liabilities
2024
2023
£
£
Corporation tax
1,877
1,878
Other taxation and social security
2,463
2,882
Accruals and deferred income
6,893
6,555
11,233
11,315
12
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to the statement of comprehensive income in respect of defined contribution schemes
26,000
The company operates a defined contribution pension scheme for its director. The assets of the scheme are held separately from those of the company in an independently administered fund.
NEW EUROPE ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
13
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
64,000 Ordinary of £1 each
64,000
63,000
During the year the company issued 1,000 £1 ordinary shares at par for cash.
14
Related party transactions
During the current year, the director repaid an interest-free, unsecured loan to the company of £10,000.
15
Ultimate controlling party
The ultimate controlling party is Mark Thaddeus Otto.
16
Analysis of changes in net funds
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
56,474
11,276
67,750
17
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
4,497
3,276
Adjustments for:
Taxation (credited)
1,877
1,878
Investment income
(1,548)
Depreciation of property, plant and equipment
633
391
Movements in working capital:
(Increase) in trade and other receivables
(4,772)
(1,187)
(Decrease)/increase in trade and other payables
(81)
1,790
Cash generated from operations
606
6,148
NEW EUROPE ADVISERS LIMITED
UNAUDITED MIFIDPRU 8 REMUNERATION DISCLOSURES AND MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 JULY 2024
NEW EUROPE ADVISERS LIMITED
UNAUDITED MIFIDPRU 8 REMUNERATION DISCLOSURES
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
Background
The Financial Conduct Authority, through MIFIDPRU 8.6 requires Small Non-Interconnected firms to disclose information on their remuneration policies and pay outs on an annual basis. New Europe Advisers Limited (“the Company”) follows remuneration policies and procedures that are consistent with the requirement of MIFIDPRU 8 and which do not promote or encourage undue risk taking.
The requirement covers an individual's total remuneration, fixed and variable. The Company can potentially incentivise staff through a combination of the two. The Company's policy is designed to ensure that it complies with the requirements and its compensation arrangements:
-
are consistent with and promote sound and effective risk management;
-
do not encourage excessive risk taking;
-
include measures to avoid conflicts of interest; and
-
are in line with the Company's business strategy, objectives, values and long-term interests.
The Company does not have a formal remuneration committee as it is not required to establish one under proportionality principles.
Remuneration code
Remuneration policy for all code staff is set by the director who reviews remuneration for staff, where applicable, based upon the individual, using both financial and non-financial criteria, and overall Company performance. Individual performance is also reviewed over an extended period to ensure the long term objectives of the staff and the Company are not in conflict. The overall level of remuneration is set in the form of a base salary and, potentially, a bonus. The resource available for bonuses is directly linked to the performance of the Company and its capital and liquidity requirements which minimises any potential conflict of interest.
Quantitative remuneration disclosure
During the year, the only employee was the Company's director. The remuneration paid to this employee was £24,000.
2024-07-312023-08-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310Mark Thaddeus Otto060771562023-08-012024-07-3106077156bus:Director12023-08-012024-07-3106077156bus:RegisteredOffice2023-08-012024-07-3106077156bus:Agent12023-08-012024-07-31060771562024-07-31060771562022-08-012023-07-3106077156countries:UnitedKingdom2023-08-012024-07-3106077156countries:UnitedKingdom2022-08-012023-07-3106077156countries:UnitedStates2023-08-012024-07-3106077156countries:UnitedStates2022-08-012023-07-3106077156core:RetainedEarningsAccumulatedLosses2022-08-012023-07-3106077156core:RetainedEarningsAccumulatedLosses2023-08-012024-07-31060771562023-07-3106077156core:FurnitureFittings2024-07-3106077156core:ComputerEquipment2024-07-3106077156core:FurnitureFittings2023-07-3106077156core:ComputerEquipment2023-07-31060771562023-07-3106077156core:CurrentFinancialInstrumentscore:WithinOneYear2024-07-3106077156core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-3106077156core:CurrentFinancialInstruments2024-07-3106077156core:CurrentFinancialInstruments2023-07-3106077156core:ShareCapital2024-07-3106077156core:ShareCapital2023-07-3106077156core:RetainedEarningsAccumulatedLosses2024-07-3106077156core:RetainedEarningsAccumulatedLosses2023-07-3106077156core:ShareCapital2022-07-3106077156core:RetainedEarningsAccumulatedLosses2022-07-31060771562022-07-3106077156core:ShareCapital2023-08-012024-07-3106077156core:FurnitureFittings2023-08-012024-07-3106077156core:ComputerEquipment2023-08-012024-07-3106077156dpl:Item12023-08-012024-07-3106077156core:OwnedAssets2023-08-012024-07-3106077156core:OwnedAssets2022-08-012023-07-3106077156core:UKTax2023-08-012024-07-3106077156core:UKTax2022-08-012023-07-3106077156core:FurnitureFittings2023-07-3106077156core:ComputerEquipment2023-07-3106077156bus:OrdinaryShareClass12024-07-3106077156bus:OrdinaryShareClass12023-08-012024-07-3106077156bus:PrivateLimitedCompanyLtd2023-08-012024-07-3106077156bus:FRS1022023-08-012024-07-3106077156bus:Audited2023-08-012024-07-3106077156bus:FullAccounts2023-08-012024-07-31xbrli:purexbrli:sharesiso4217:GBP