Company registration number 11219560 (England and Wales)
PRIVALGO MARKETS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PRIVALGO MARKETS LIMITED
COMPANY INFORMATION
Directors
D Knaggs
M Clarke
R Chunn
D J Biggs
Z Bham
Company number
11219560
Registered office
5th & 6th Floor
16 Eastcheap
London
England
EC3M 1BD
Auditor
Kingswood LLP
3 Coldbath Square
London
EC1R 5HL
PRIVALGO MARKETS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
PRIVALGO MARKETS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present their strategic report for the year ended 31 December 2024.
Review of the business
The results of the Company for the year, as set out in the profit and loss account, show a loss after tax for the period of £41,197 (2023: profit of £320,439). The Company commenced trading activities in April 2023 and has continued to grow its options and foreign exchange service activity throughout 2024. The directors are happy with the incremental approach to trading in 2024, which has allowed the directors to test the Company's robust IT and compliance infrastructure, enabling the directors to be confident in a more active full trading year in 2025.
During the year, the company became a subsidiary of Privalgo Holdings Limited as part of a group restructure following FCA approval.
The Company has documented the disclosures required by the FCA under MIFIDPRU 8 and MIFIDPRU TP12. These can be found at the following location: https://www.privalgomarkets.co.uk/.
Principal risks and uncertainties
Operational risk
Operational risk is the risk of loss arising from failed or inadequate internal processes or systems, human error or other factors. The risk is managed by the directors who have responsibility for putting in place appropriate controls for the business. The Company makes use of external consultants where necessary to monitor the effectiveness of the controls.
Foreign exchange risk
The Company maintains bank accounts for the receipt and delivery of client funds. Trades with the broker counterparty will be undertaken seamlessly in order to avoid any unnecessary exposure to foreign exchange market movements. No cash transactions will be completed with the broker counterparty without the client funds first received.
Credit risk
Credit risk would arise when a client fails to put forward the funds to complete their transacted foreign currency contracts. The Company will mitigate this with a requirement for deposit downpayments from certain clients and trades and making margin calls to clients to cover adverse currency movements on a market to market basis.
Liquidity risk
Liquidity risk arises from the management of working capital. In the prior period, the Company has received funding in several tranches in order to facilitate its trade. Funding was provided by way of a £599,990 equity injection. The Company has also received a £300,000 subordinated loan from a company under common control.
Financial key performance indicators
The Company considers gross profit the key financial performance indicator. The Company achieved a gross profit of £333,699 for the year (2023: £558,629).
Non-financial key performance indicators
The Company had an average headcount of 7 employees for the year, including directors (2023: 6).
PRIVALGO MARKETS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Energy and carbon report
In the year ended 31 December 2024, the Company is classified as a low energy user as its total energy usage for the year to 31 December 2024 is below 40,000kWh. Therefore the Company is exempt from providing an energy and carbon report under section 20D(7a) of The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
Section 172 statement
The directors of the Company are mindful of their responsibilities under section 172 of the Companies Act 2006 to promote the success of the business through operating in accordance with good corporate practice and with considered engagement with the Company's stakeholders.
At the year end, 80% of the Company's ultimate shareholders were also directors of the Company, and are therefore actively involved in all key decision-making.
The board of directors regularly review and identify other principal stakeholders of the business, and decisions in respect of the Company's activities are made only after reviewing, and discussing, the potential impact on those stakeholders.
The directors continue to foster open and constructive engagement with the employees of the business in order to fairly represent the views of the workforce in matters affecting their interests.
Furthermore, in terms of engagement with the Company's counterparty suppliers, the directors continue to actively monitor ethical standards, employment conditions and environmental issues to ensure that the wider business in compliant with global standards.
D J Biggs
Director
25 April 2025
PRIVALGO MARKETS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the Company is that of a foreign exchange services provider. The Company is authorised by the Financial Conduct Authority (FCA) to carry out the investment activity of Contract for Differences (CFD) with clients in relation to cash settled Foreign Exchange Swaps and Non-Deliverable Forwards (NDFs).
Results and dividends
The results for the year are set out on page 8.
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:
D Knaggs
M Clarke
R Chunn
D J Biggs
Z Bham
Energy and carbon report
As the Company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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.
Matters covered in the Strategic report
As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.
On behalf of the board
D J Biggs
Director
25 April 2025
PRIVALGO MARKETS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
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 and explained 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.
PRIVALGO MARKETS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRIVALGO MARKETS LIMITED
- 5 -
Opinion
We have audited the financial statements of Privalgo Markets Limited (the 'Company') for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet, 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 December 2024 and of its loss 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.
PRIVALGO MARKETS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRIVALGO MARKETS 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.
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;
we identified the laws and regulations applicable to the Company through discussions with the directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, applicable Financial Services and Markets Act 2000 (FSMA 2000) legislation, taxation legislation and employment legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquires of management as to where they considered there was susceptibility to fraud, either knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
PRIVALGO MARKETS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRIVALGO MARKETS LIMITED (CONTINUED)
- 7 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
inspecting legal documentation for indications of non-compliance with laws and regulations; and
enquiring of management as to actual and potential litigation and claims.
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 director 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.
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.
Richard Behan FCA (Senior Statutory Auditor)
For and on behalf of Kingswood LLP, Statutory Auditor
Chartered Accountants
3 Coldbath Square
London
EC1R 5HL
25 April 2025
PRIVALGO MARKETS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
433,201
619,134
Cost of sales
(99,502)
(60,505)
Gross profit
333,699
558,629
Administrative expenses
(416,605)
(158,304)
Operating (loss)/profit
3
(82,906)
400,325
Interest receivable and similar income
6
48,101
20,651
Interest payable and similar expenses
7
(18,812)
(18,000)
(Loss)/profit before taxation
(53,617)
402,976
Tax on (loss)/profit
8
12,420
(82,537)
(Loss)/profit for the financial year
(41,197)
320,439
There were no items of other comprehensive income for either the year or the prior period other than the loss for the year. Accordingly, no statement of other comprehensive income has been presented.
PRIVALGO MARKETS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
9
8,176,311
20,472,289
Cash at bank and in hand
950,932
1,305,495
9,127,243
21,777,784
Creditors: amounts falling due within one year
11
(8,000,063)
(20,609,407)
Net current assets
1,127,180
1,168,377
Creditors: amounts falling due after more than one year
12
(300,000)
(300,000)
Net assets
827,180
868,377
Capital and reserves
Called up share capital
14
599,996
599,996
Capital redemption reserve
18
4
4
Profit and loss reserves
15
227,180
268,377
Total equity
827,180
868,377
The financial statements were approved by the board of directors and authorised for issue on 25 April 2025 and are signed on its behalf by:
D J Biggs
Director
Company registration number 11219560 (England and Wales)
PRIVALGO MARKETS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
600,000
-
(52,062)
547,938
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
320,439
320,439
Cancellation of shares
14
(4)
4
(4)
Balance at 31 December 2023
599,996
4
268,377
868,377
Year ended 31 December 2024:
Loss and total comprehensive income
-
-
(41,197)
(41,197)
Balance at 31 December 2024
599,996
4
227,180
827,180
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Privalgo Markets Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th & 6th Floor, 16 Eastcheap, London, England, EC3M 1BD.
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.
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 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Privalgo Holdings Limited. These consolidated financial statements are available from its registered office, 5th & 6th Floor, 16 Eastcheap, London, England, EC3M 1BD.
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.
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Turnover comprises foreign exchange income.
Foreign exchange income is recognised based on the difference between the values the company can buy and sell the foreign currency for in respect of spot contracts, forward contracts, options, contract for differences and non-deliverable forwards, together with any premiums received for providing these contracts.
The following criteria must be met before turnover is recognised:
Turnover for premiums received for the provision of options, contract for differences and non-deliverable forwards are recognised at the point of verification of the contract between the Company and the client.
Turnover on spot and forward trades is recognised after receiving the client's authorisation to undertake a currency transaction for immediate or forward delivery, and after the transaction has been processed and internally verified by the Company.
Where the company enters into contracts for forward delivery of foreign currency with its clients, the company also enters into separate matched forward contracts with its brokers.
Where contracts for forward delivery are open at the year end, the balance of contracts due from the client at maturity is included in debtors and the corresponding liability with the company's brokers is included in creditors.
1.4
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
1.5
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.
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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 trade and other creditors and loans from fellow group companies, 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.
1.6
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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable.
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
1.8
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.
1.9
Defined Contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
1.10
Interest income is recognised in profit or loss using the effective interest method.
1.11
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
1.12
Foreign Currency translation
Functional and presentation currency
The Company's functional and presentational currency is Sterling (£).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each year end, foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents and all other foreign exchange gains and losses are presented in the profit and loss account within 'profit or loss on foreign exchange' within administrative expenses.
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Profit on foreign exchange trades
363,124
147,747
Turnover from option premiums
70,077
471,387
433,201
619,134
2024
2023
£
£
Other revenue
Interest income
48,101
20,651
All turnover arose within the United Kingdom.
3
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Loss on foreign exchange
12,218
11,763
Audit fees payable to the Company's auditor
30,000
15,000
Defined contribution pension costs
550
550
Non-audit fees payable to the Company's auditor
31,000
5,000
4
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
38,393
During the year retirement benefits were accruing to 0 directors (2023: 0) in respect of defined contribution pension schemes.
5
Employees
The average monthly number of persons (including directors) employed by the Company during the year was:
2024
2023
Number
Number
7
6
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
237,501
83,393
Social security costs
23,415
10,440
Pension costs
1,761
550
262,677
94,383
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
48,101
20,651
7
Interest payable and similar expenses
2024
2023
£
£
Other loan interest payable
18,000
18,000
Other interest
812
18,812
18,000
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
82,537
Adjustments in respect of prior periods
(12,420)
Total current tax
(12,420)
82,537
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 17 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(53,617)
402,976
Expected tax charge/(credit) based on the standard rate of corporation tax the UK of 25% (2023: 23.52%)
-
94,780
Tax effect of utilisation of tax losses not previously recognised
-
(12,243)
Adjustments in respect of prior years
(12,420)
-
Taxation (credit)/charge for the year
(12,420)
82,537
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
567,478
Corporation tax recoverable
11,608
Amounts owed by group undertakings
107,458
Amounts receivable on open spot and forward contracts
8,161,743
19,794,315
Prepayments and accrued income
2,960
3,038
8,176,311
20,472,289
Amounts owed by group undertakings are interest free, unsecured and repayable on demand.
10
Cash and cash equivalients
2024
2023
£
£
Cash at bank and in hand
950,932
1,305,495
Included in cash at bank and in hand are amounts in segregated client accounts totalling £49,351 (2023: £566,992).
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Other borrowings
294
881
Trade creditors
21,209
737,016
Amounts owed to group undertakings
513,954
Corporation tax
82,537
Other taxation and social security
3,607
5,580
Amounts payable on open spot and forward contracts
7,228,118
18,853,840
Other creditors
85,341
909,553
Accruals and deferred income
147,540
20,000
8,000,063
20,609,407
Included in trade creditors shown above are amounts held on behalf of clients in segregated client accounts totalling £20,878 (2023: £566,992).
Amounts owed to group undertakings are interest free, unsecured and repayable on demand.
12
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other borrowings
300,000
300,000
Other loans compromise a principal advanced of £300,000 provided by a 100% group company. The loan incurs interest at 6% per annum, and is subordinated to other creditors of the Company.
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,761
550
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.
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
59,999,555
59,999,555
599,996
599,996
PRIVALGO MARKETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
15
Profit and loss reserves
Capital redemption reserve
Capital redemption reserve comprises the aggregate value of share capital purchased and cancelled by the Company.
Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses.
16
Related party transactions
The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group. As at the balance sheet date, the Company owed £813,954 (2023: £192,542) fellow group companies.
17
Ultimate parent undertaking and controlling party
The immediate parent company, ultimate parent company, and the parent undertaking of the smallest group of undertakings for which group financial statements are drawn up and of which the company is a member is Privalgo Holdings Limited, a company incorporated in England & Wales whose registered office is at 5th & 6th Floor, 16 Eastcheap, London, England, EC3M 1BD. Copies of these group financial statements are available to the public from Companies House.
In the opinion of the directors, the ultimate controlling party is Privalgo Holdings Limited.
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