Company registration number 09756588 (England and Wales)
EIGHT ADVISORY UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EIGHT ADVISORY UK LIMITED
COMPANY INFORMATION
Directors
E Demuyt
P Raidron
J Welstead
Company number
09756588
Registered office
100 Pall Mall
London
United Kingdom
SW1Y 5NQ
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
Business address
100 Pall Mall
London
United Kingdom
SW1Y 5NQ
EIGHT ADVISORY UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
EIGHT ADVISORY UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The company is the UK subsidiary of the Eight Advisory Global advisory business.
The company’s income comprises fees invoiced to clients in respect of sevices. The principal activities of the company are those of providing financial and tax advisory services in the context of mergers & acquisitions, valuation services and operational advisory services. The accounts reflect pre-tax profits of £2.8 million (2022: £5.9 million) and balance sheet reserves of £6.9 million (2022: £4.8 million).
The business review of the directors contained in the financial statements of Eight Advisory (UK) Limited is as follows:
We aim to present a fair review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non complex nature of our business, and is written in the context of the risks and uncertainties we face.
Principal risks and uncertainties
The business environment in which the company operates continues to be challenging in a context of geo-political risk, inflation, higher interest rates than prior years.
However, the company’s reputation for delivering high quality service and meeting tight deadlines where necessary has allowed us to continue to consolidate our position as a trusted business advisor with existing clients and to win new clients.
The longer term impacts of Brexit, interest rates, geo-political risks remain uncertain and any volatility in the volume of mergers & acquisitions will have an impact on the business.
Financial risk
The principal financial risk faced by the business is in respect of credit afforded to clients. The directors monitor collection of client receivables on a regular basis.
Future developments
The directors continue to investigate opportunities to grow the business and extend the range of services offered. Future growth will be driven by both internal promotion and external recruitment and the directors will also consider acquiring businesses that present commercial synergies to the existing business.
Engagement with suppliers, customers and other relationships
Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers and other operational partners. Eight Advisory seeks the promotion and application of certain general principles in such relationships. The ability to promote these principles effectively is an important factor in the decision to enter into or remain in such relationships.
The business continuously assesses the priorities related to clients and seek ways of providing first class services to them.
Communities
Eight Advisory believes in participating in the wider community and in particular supported the Reach Out charity and Hackney City Farm during the year.
Employees
The directors seek to employ the best possible talent and to encourage diversity at both the recruitment phase and in providing support to all of our employees to achieve their potential. The directors would like to thank all of our employees for their commitment and hard work over the last 12 months.
EIGHT ADVISORY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Culture
The directors encourage all employees to pursue their careers in line with the values of Eight Advisory of Entrepreneurship, Respect and Excellence. All employees are encouraged to engage with their colleagues and with the leadership team to provide considered and transparent feedback.
Key performance indicators
The business continued to grow in the year with fees increasing from £17.1 million to £17.8 million.
The balance sheet continues to present a very solid position, with net assets increasing from £4.8 million to £6.9 million.
.............................................
J Welstead
Director
Date: .............................................
EIGHT ADVISORY UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of providing financial advisory consultancy services.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £Nil (2022: £4,000,000). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
E Demuyt
P Raidron
J Welstead
Auditor
The auditor, Gerald Edelman LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
The directors confirm that:
so far as each director is aware, there is no relevant audit information of which the company’s auditor is unaware; and
the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
EIGHT ADVISORY UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Going concern
The financial statements have been prepared on the assumption that the company is a going concern.
Having reviewed the company's financial forecasts, expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the going concern basis has been adopted in preparing the financial statements for the year ended 31 December 2023.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
J Welstead
Director
14 April 2025
EIGHT ADVISORY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EIGHT ADVISORY UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Eight Advisory UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 December 2023 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
EIGHT ADVISORY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EIGHT ADVISORY UK LIMITED (CONTINUED)
- 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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.
The extent to which the audit was considered capable of detecting irregularities including fraud
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
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.
Enquiring of management of whether they are aware of any non-compliance with laws and regulations.
Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.
Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in posting of unusual journals.
Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act, tax legislation, employment law, data protection, anti-bribery and health and safety.
EIGHT ADVISORY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EIGHT ADVISORY UK LIMITED (CONTINUED)
- 7 -
Audit response to risks identified
Fraud due to management override
To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify any unusual or unexpected relationships.
Audited the risk of management override of controls, including through testing journal entries for appropriateness.
Irregularities and non-compliance with laws and regulations
In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:
The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance. Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.
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.
Rowan Lindsay
Senior Statutory Auditor
For and on behalf of Gerald Edelman LLP
14 April 2025
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
EIGHT ADVISORY UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,751,346
17,056,487
Cost of sales
(12,456,632)
(9,108,361)
Gross profit
5,294,714
7,948,126
Administrative expenses
(2,615,114)
(2,019,387)
Operating profit
4
2,679,600
5,928,739
Interest receivable and similar income
8
108,112
5,105
Interest payable and similar expenses
9
(118,306)
(2,446)
Profit before taxation
2,669,406
5,931,398
Tax on profit
10
(643,724)
(1,127,446)
Profit for the financial year
2,025,682
4,803,952
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There is no other comprehensive income (2022: None).
EIGHT ADVISORY UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,272,006
1,300,160
Current assets
Debtors
13
14,221,153
12,976,893
Cash at bank and in hand
600,253
1,312,009
14,821,406
14,288,902
Creditors: amounts falling due within one year
14
(9,224,973)
(10,746,305)
Net current assets
5,596,433
3,542,597
Net assets
6,868,439
4,842,757
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
6,868,438
4,842,756
Total equity
6,868,439
4,842,757
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 14 April 2025 and are signed on its behalf by:
J Welstead
Director
Company registration number 09756588 (England and Wales)
EIGHT ADVISORY UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1
4,038,804
4,038,805
Year ended 31 December 2022:
Profit and total comprehensive income
-
4,803,952
4,803,952
Dividends
11
-
(4,000,000)
(4,000,000)
Balance at 31 December 2022
1
4,842,756
4,842,757
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,025,682
2,025,682
Balance at 31 December 2023
1
6,868,438
6,868,439
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Eight Advisory UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 100 Pall Mall, London, SW1Y 5NQ.
1.1
Accounting convention
The financial statements are prepared under the historical cost convention.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Eight Partners Global S.A.S as at 31 December 2023. These consolidated financial statements are available from its registered office is 40 rue de Courcelles, 75008, Paris.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
over the period of the lease
Fixtures, fittings & 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 profit or loss.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet 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 include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Accrued Income
The directors make key estimates in respect of the projects that are work in progress at the year end and estimate accrued income based on time charges of the company's personnel as of the year end that is not yet billed to the respective entities. The costs are estimated based on the professional fees not yet billed and time charges as of the year end rendered by the company's employees.
Depreciation, useful lives and residual values of tangible fixed assets
The directors estimate the useful economic life and residual values of tangible assets in order to calculate the depreciation charge. Changes in these estimates could result in changes being required to the annual charges in the income statement and the carrying values of these assets in the Balance Sheet.
Bad debt provisions
The directors have considered the bad debt provision by considering the financial situation of each client. The directors make decisions on a case by case basis in assessing individual debtor recoverability, only providing against potential bad debts when a client is evidently under severe financial stress or where the directors’ opinion is that recoverability is doubtful.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
17,751,346
17,056,487
2023
2022
£
£
Other revenue
Interest income
108,112
5,105
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(41,179)
256,063
Fees payable to the company's auditor for the audit of the company's financial statements
43,000
10,000
Depreciation of owned tangible fixed assets
182,882
45,467
(Profit)/loss on disposal of tangible fixed assets
-
210,402
Operating lease charges
617,117
336,451
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
43,000
10,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Operational
61
51
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
9,432,138
5,310,288
Social security costs
936,343
680,427
Pension costs
329,941
214,346
10,698,422
6,205,061
At the year end there was a pension creditor of £48,326 (2022: £40,735).
7
Directors' remuneration
No remuneration was paid to the directors.
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
108,112
Other interest income
5,105
Total income
108,112
5,105
9
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
97,884
Other interest
20,422
2,446
118,306
2,446
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
658,975
1,127,446
Adjustments in respect of prior periods
(15,251)
Total current tax
643,724
1,127,446
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:
2023
2022
£
£
Profit before taxation
2,669,406
5,931,398
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
627,310
1,126,966
Tax effect of expenses that are not deductible in determining taxable profit
1,298
480
Depreciation on assets not qualifying for tax allowances
15,116
Taxation charge for the year
643,724
1,127,446
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
11
Dividends
2023
2022
£
£
Interim paid
4,000,000
There were no dividends paid or proposed during the year.
12
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2023
1,086,659
299,693
1,386,352
Additions
86,561
91,286
177,847
Disposals
(23,119)
(23,119)
At 31 December 2023
1,173,220
367,860
1,541,080
Depreciation and impairment
At 1 January 2023
86,192
86,192
Depreciation charged in the year
115,390
67,492
182,882
At 31 December 2023
115,390
153,684
269,074
Carrying amount
At 31 December 2023
1,057,830
214,176
1,272,006
At 31 December 2022
1,086,659
213,501
1,300,160
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,862,156
2,784,966
Amounts owed by group undertakings
2,651,982
2,274,652
Other debtors
7,288,039
7,896,378
Prepayments and accrued income
418,976
20,897
14,221,153
12,976,893
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Trade creditors
565,492
598,877
Amounts owed to group undertakings
2,475,961
4,919,647
Corporation tax
37,343
1,011,015
Other taxation and social security
277,494
475,183
Deferred income
15
512,191
Other creditors
48,326
40,735
Accruals and deferred income
5,308,166
3,700,848
9,224,973
10,746,305
15
Deferred income
2023
2022
£
£
Other deferred income
512,191
-
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
329,941
214,346
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
EIGHT ADVISORY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
18
Operating lease commitments
Operating lease payments represent rentals by the company for its office premises.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
691,414
188,568
Between two and five years
2,074,243
2,765,657
2,765,657
2,954,225
19
Ultimate controlling party
The ultimate parent company at the report date was Eight Partners Global S.A.S and immediate parent was Eight Advisory S.A.S, companies registered in France. The registered address of both companies is 40 rue de Courcelles, 75008, Paris.
20
Related party transactions
The company has taken advantage of the exemption available under FRS102 whereby it has not disclosed
any transactions and balances with fully owned group companies.
2023-12-312023-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310E DemuytP RaidronJ Welstead097565882023-01-012023-12-3109756588bus:Director12023-01-012023-12-3109756588bus:Director22023-01-012023-12-3109756588bus:Director32023-01-012023-12-3109756588bus:RegisteredOffice2023-01-012023-12-31097565882023-12-31097565882022-01-012022-12-3109756588core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3109756588core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31097565882022-12-3109756588core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3109756588core:FurnitureFittings2023-12-3109756588core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3109756588core:FurnitureFittings2022-12-3109756588core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3109756588core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3109756588core:CurrentFinancialInstruments2023-12-3109756588core:CurrentFinancialInstruments2022-12-3109756588core:ShareCapital2023-12-3109756588core:ShareCapital2022-12-3109756588core:RetainedEarningsAccumulatedLosses2023-12-3109756588core:RetainedEarningsAccumulatedLosses2022-12-3109756588core:ShareCapital2021-12-3109756588core:RetainedEarningsAccumulatedLosses2021-12-3109756588core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3109756588core:FurnitureFittings2023-01-012023-12-310975658812023-01-012023-12-310975658812022-01-012022-12-3109756588core:UKTax2023-01-012023-12-3109756588core:UKTax2022-01-012022-12-3109756588core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3109756588core:FurnitureFittings2022-12-31097565882022-12-3109756588core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3109756588core:WithinOneYear2023-12-3109756588core:WithinOneYear2022-12-3109756588core:BetweenTwoFiveYears2023-12-3109756588core:BetweenTwoFiveYears2022-12-3109756588bus:PrivateLimitedCompanyLtd2023-01-012023-12-3109756588bus:FRS1022023-01-012023-12-3109756588bus:Audited2023-01-012023-12-3109756588bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP