Company registration number 08796754 (England and Wales)
ANCHORAGE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
ANCHORAGE GROUP LIMITED
COMPANY INFORMATION
Directors
R. Pucciano
F. Redmond
Secretary
Ocs Corporate Secretaries Ltd
Company number
08796754
Registered office
7th Floor
One Canada Square
Canary Wharf
London
E14 5AA
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Business address
7th Floor
One Canada Square
Canary Wharf
London
E14 5AA
ANCHORAGE GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
ANCHORAGE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Review of the business

During the year a net loss before tax of £63,512 was recorded on a turnover of £727,378. This showed an improvement on the prior year, which included exceptional impairment charges of £116,000. The current year results are after an exceptional impairment charge of £22,000. The directors are satisfied with the performance of the company in the year.

 

Key Performance Indicators

The key performance indicators monitored by the company are turnover, gross profit and profit before tax, all of which are disclosed on page 7 of the financial statements. Both turnover and direct costs have increased in the year, direct costs by a lower amount, which has resulted in an increased gross profit percentage. The improved result before tax recorded is mainly due to the reduced exceptional charges in the year.

Principal risks and uncertainties

Details of the Company's principal risks and uncertainties are detailed in the directors' report within the Financial Instruments and Future Developments sections.

Promoting the success of the company

The directors of Anchorage Group Limited consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172(1) (a) - (f) of the Companies Act 2006) in the decisions taken during the period ended 31 May 2024:

· Our plan was designed to have a long term beneficial impact on the company and to contribute to its success in delivering a high quality of service across all areas of our business.

· Our team members are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and well being of our team members is one of our primary considerations in the way we do business.

· Engagement with suppliers and customers is key to our success. We meet with our major partners regularly throughout the year and take appropriate action, where necessary, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.

· Our plan takes into account the impact of the company operations on the community, environment and our wider social responsibilities.

· Our intention is to be behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan.

On behalf of the board

F. Redmond
Director
16 April 2025
ANCHORAGE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the company continued to be that of the provision of consultancy services.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. 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:

R. Pucciano
F. Redmond
K Hildebrant
(Resigned 21 September 2023)
Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. Due to the moderate level of borrowings the company does not consider it necessary to use interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity may involve the use of foreign exchange forward contracts from time to time.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Research and development

The Company has invested in the development of a new securitization offering.

Future developments

The directors consider that the consultancy market will be challenging during 2024/25 with the continuing conflicts and political instability around the world presenting significant challenges to future trading conditions. The directors are continuing to keep these matters under constant review so they can respond appropriately as the need arises.

ANCHORAGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
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:

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.

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 directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Company registration

On 12 January 2024, the company re-registered from a Public Limited Company to a Private Limited Company.

On behalf of the board
F. Redmond
Director
16 April 2025
ANCHORAGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANCHORAGE GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of Anchorage Group Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of income and retained earnings, the balance sheet, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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:

ANCHORAGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANCHORAGE GROUP LIMITED
- 5 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement included within the directors' report, 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.

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.

 

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraudulent revenue recognition.

ANCHORAGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANCHORAGE GROUP LIMITED
- 6 -

Our procedures to respond to risks identified included the following:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

Christopher Moss BSc F.C.A. (Senior Statutory Auditor)
For and on behalf of JS. Audit Limited
22 April 2025
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
ANCHORAGE GROUP LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
727,378
529,128
Cost of sales
(493,576)
(454,513)
Gross profit
233,802
74,615
Administrative expenses
(273,263)
(170,777)
Exceptional item
4
(22,000)
(116,000)
Operating loss
5
(61,461)
(212,162)
Interest receivable and similar income
9
695
-
0
Interest payable and similar expenses
10
(2,746)
(4,723)
Loss before taxation
(63,512)
(216,885)
Tax on loss
11
-
0
13,482
Loss for the financial year
(63,512)
(203,403)
Retained earnings brought forward
(3,748,261)
(3,544,858)
Retained earnings carried forward
(3,811,773)
(3,748,261)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ANCHORAGE GROUP LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
277,748
220,027
Current assets
Debtors
15
436,301
1,396,918
Cash at bank and in hand
4,470
2,967
440,771
1,399,885
Creditors: amounts falling due within one year
16
(1,522,376)
(2,335,257)
Net current liabilities
(1,081,605)
(935,372)
Total assets less current liabilities
(803,857)
(715,345)
Creditors: amounts falling due after more than one year
17
(7,916)
(32,916)
Net liabilities
(811,773)
(748,261)
Capital and reserves
Called up share capital
19
3,000,000
3,000,000
Profit and loss reserves
20
(3,811,773)
(3,748,261)
Total equity
(811,773)
(748,261)
The financial statements were approved by the board of directors and authorised for issue on 16 April 2025 and are signed on its behalf by:
F. Redmond
Director
Company registration number 08796754 (England and Wales)
ANCHORAGE GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
15,169
42,505
Interest paid
(2,746)
(4,723)
Income taxes refunded/(paid)
13,385
(13,288)
Net cash inflow from operating activities
25,808
24,494
Investing activities
Purchase of subsidiaries
-
(6,352)
Interest received
695
-
0
Net cash generated from/(used in) investing activities
695
(6,352)
Financing activities
Repayment of bank loans
(25,000)
(25,417)
Net cash used in financing activities
(25,000)
(25,417)
Net increase/(decrease) in cash and cash equivalents
1,503
(7,275)
Cash and cash equivalents at beginning of year
2,967
10,242
Cash and cash equivalents at end of year
4,470
2,967
ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
1
Accounting policies
Company information

Anchorage Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7th Floor, One Canada Square, Canary Wharf, London, E14 5AA.

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 sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The company made a loss after taxation for the year of £63,512 and atruet the balance sheet date, net liabilities were £811,773. The company is dependent upon support from group and related undertakings to continue in operational existence for the foreseeable future.

The company has received written confirmation from its parent, subsidiary and related undertakings that they do not intend to demand repayment of their loans for a period of at least 12 months from the date of approval of these financial statements if the company requests it. Furthermore, the parent undertaking has confirmed its intention to provide such financial support as may be necessary to enable the company to meet its liabilities as they fall due and to continue trading for a period of at least 12 months from the date of approval of these financial statements.

The directors have assessed the ability of these undertakings to provide the outlined support and have concluded that there is a reasonable expectation the company will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors consider it appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for consultancy 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 is recognised as contract activity progresses.

 

Where sales invoices are raised in advance of the related services being performed, the amounts are recognised as deferred income and released to revenue as the services are delivered.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development costs
15 years on a straight line basis
ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

1.8
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.

ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 12 -
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.

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 and loans from fellow group companies 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.

1.9
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.

ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -
1.10
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 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.

1.11
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.

1.12
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.

ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
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.

Provision against irrecoverability of trade debtors

Assessing the recoverability of trade debtors involves management evaluating the ongoing creditworthiness of customers and other relevant factors to determine whether a provision for doubtful debts is required.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revenue recognition

As described in note 1.3, revenue is recognised as consultancy services are delivered. Judgement is involved in estimating the stage of completion of the services and how much revenue should be deferred.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Provision of consultancy services
727,378
529,128
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
89,412
41,845
Europe
637,966
455,243
Rest of the World
-
32,040
727,378
529,128
2024
2023
£
£
Other revenue
Interest income
695
-
ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
4
Exceptional item
2024
2023
£
£
Expenditure/(income)
Exceptional impairment charges
22,000
116,000
5
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Exchange losses
16,198
17,308
Rental cost
25,355
30,434
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
7,800
6,800
For other services
All other non-audit services
1,950
1,700
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration (including directors)
3
3

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
50,566
57,187
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
21,500
23,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
695
-
0
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,681
3,679
Other finance costs:
Other interest
65
1,044
2,746
4,723
11
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
(13,482)

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(63,512)
(216,885)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
(15,878)
(43,377)
Unutilised tax losses carried forward
10,378
20,011
Under/(over) provided in prior years
-
0
(13,482)
Impairment losses
5,500
23,200
Interest on late repayments
-
0
166
Taxation charge/(credit) for the year
-
(13,482)

A UK corporation tax rate of 25% was announced in the Chancellor’s Budget of 3 March 2021. The 25% rate was applied from 1 April 2023. Deferred tax is calculated using the 25% rate, where appropriate.

ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
12
Intangible fixed assets
Development costs
£
Cost
At 1 June 2023 and 31 May 2024
615,448
Amortisation and impairment
At 1 June 2023 and 31 May 2024
615,448
Carrying amount
At 31 May 2024
-
0
At 31 May 2023
-
0
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
277,748
220,027
Movements in fixed asset investments
Shares in subsidiaries and associates
£
Cost or valuation
At 1 June 2023
336,027
Additions
79,721
At 31 May 2024
415,748
Impairment
At 1 June 2023
116,000
Impairment losses
22,000
At 31 May 2024
138,000
Carrying amount
At 31 May 2024
277,748
At 31 May 2023
220,027
ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
14
Subsidiaries

Separate company financial statements are required to be prepared by law.

 

The company has taken the exemption under Section 399 (2A) of the Companies Act 2006 to not prepare consolidated accounts as it would be subject to the small companies regime but for it being a public company.

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
White Rock Securitization Assets Management SCC Plc
Malta
Securitisation cell company
Ordinary
51.00
-
Partners 1607 AG
Switzerland
Consultancy services
Ordinary
100.00
-
Anchorage Advisory Services Limited
United Kingdom
Consultancy services
Ordinary
100.00
-
Partners 1607 Establishment
Liechtenstein
Consultancy services
Ordinary
100.00
-
Aqua Realty Management & Contractors Limited
United Kingdom
Consultancy services
Ordinary
-
100.00
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
41,235
1,005,314
Corporation tax recoverable
-
0
13,385
Amounts owed by group undertakings
10,000
10,000
Other debtors
83,077
89,950
Prepayments and accrued income
301,989
278,269
436,301
1,396,918
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
25,000
25,000
Trade creditors
374,093
648,926
Amounts owed to group undertakings
853,074
635,020
Taxation and social security
895
1,304
Other creditors
73,061
134,413
Accruals and deferred income
196,253
890,594
1,522,376
2,335,257
ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
18
7,916
32,916
18
Loans and overdrafts
2024
2023
£
£
Bank loans
32,916
57,916
Payable within one year
25,000
25,000
Payable after one year
7,916
32,916

The long-term loans are secured by an unlimited debenture granted in favour of the bank.

 

19
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
3,000,000 Ordinary shares of £1 each
3,000,000
3,000,000
20
Profit and loss reserves

Profit and loss account - includes all current and prior period retained profits and losses net of distributions to shareholders.

ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

2024
2023
Amounts due to related parties
£
£
Entities subject to significant influence by key management personnel
333,413
431,522
Group undertakings
853,074
635,020

The following amounts were outstanding at the reporting end date:

2024
2024
2024
Balance
Provision
Net
Amounts due from related parties
£
£
£
Group undertakings
13,100
3,100
10,000
Entities controlled by key management personnel
9,789
9,789
-
2023
2023
2023
Balance
Provision
Net
Amounts due in previous period
£
£
£
Group undertakings
10,000
-
10,000
Entities controlled by key management personnel
10,867
-
10,867
22
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Director
-
7,648
(8,036)
(388)
7,648
(8,036)
(388)
23
Ultimate controlling party

By virtue of ownership of the company's entire issued share capital Stonehenge Foundation, a company registered in Isle of Man, is the immediate parent company and the ultimate parent undertaking.

 

During the current and previous period, no individual shareholder controlled the company.

ANCHORAGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
24
Cash generated from operations
2024
2023
£
£
Loss for the year after tax
(63,512)
(203,403)
Adjustments for:
Taxation charged/(credited)
-
0
(13,482)
Finance costs
2,746
4,723
Investment income
(695)
-
0
Impairment of fixed asset investments
22,000
116,000
Movements in working capital:
Decrease/(increase) in debtors
867,511
(1,059,254)
(Decrease)/increase in creditors
(812,881)
1,197,921
Cash generated from operations
15,169
42,505
25
Analysis of changes in net debt
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
2,967
1,503
4,470
Borrowings excluding overdrafts
(57,916)
25,000
(32,916)
(54,949)
26,503
(28,446)
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