Caseware UK (AP4) 2024.0.164 2024.0.164 2024-09-302024-09-30false12Investment managmentfalsefalse14false2023-10-01 03582673 2023-10-01 2024-09-30 03582673 2022-10-01 2023-09-30 03582673 2024-09-30 03582673 2023-09-30 03582673 2022-10-01 03582673 2 2023-10-01 2024-09-30 03582673 2 2022-10-01 2023-09-30 03582673 5 2023-10-01 2024-09-30 03582673 5 2022-10-01 2023-09-30 03582673 1 2023-10-01 2024-09-30 03582673 e:CompanySecretary1 2023-10-01 2024-09-30 03582673 e:Director1 2023-10-01 2024-09-30 03582673 e:Director2 2023-10-01 2024-09-30 03582673 e:Director3 2023-10-01 2024-09-30 03582673 e:Director4 2023-10-01 2024-09-30 03582673 e:RegisteredOffice 2023-10-01 2024-09-30 03582673 e:Agent1 2023-10-01 2024-09-30 03582673 d:OfficeEquipment 2023-10-01 2024-09-30 03582673 d:OfficeEquipment 2024-09-30 03582673 d:OfficeEquipment 2023-09-30 03582673 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 03582673 d:CurrentFinancialInstruments 2024-09-30 03582673 d:CurrentFinancialInstruments 2023-09-30 03582673 d:Non-currentFinancialInstruments 2024-09-30 03582673 d:Non-currentFinancialInstruments 2023-09-30 03582673 d:CurrentFinancialInstruments d:WithinOneYear 2024-09-30 03582673 d:CurrentFinancialInstruments d:WithinOneYear 2023-09-30 03582673 f:UnitedKingdom 2023-10-01 2024-09-30 03582673 f:UnitedKingdom 2022-10-01 2023-09-30 03582673 f:RestWorldOutsideUK 2023-10-01 2024-09-30 03582673 f:RestWorldOutsideUK 2022-10-01 2023-09-30 03582673 d:UKTax 2023-10-01 2024-09-30 03582673 d:UKTax 2022-10-01 2023-09-30 03582673 d:ShareCapital 2024-09-30 03582673 d:ShareCapital 2023-09-30 03582673 d:SharePremium 2024-09-30 03582673 d:SharePremium 2023-09-30 03582673 d:CapitalRedemptionReserve 2024-09-30 03582673 d:CapitalRedemptionReserve 2023-09-30 03582673 d:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 03582673 d:RetainedEarningsAccumulatedLosses 2024-09-30 03582673 d:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 03582673 d:RetainedEarningsAccumulatedLosses 2023-09-30 03582673 d:RetainedEarningsAccumulatedLosses 2022-10-01 03582673 d:AcceleratedTaxDepreciationDeferredTax 2024-09-30 03582673 d:AcceleratedTaxDepreciationDeferredTax 2023-09-30 03582673 d:TaxLossesCarry-forwardsDeferredTax 2024-09-30 03582673 d:TaxLossesCarry-forwardsDeferredTax 2023-09-30 03582673 e:OrdinaryShareClass1 2023-10-01 2024-09-30 03582673 e:OrdinaryShareClass1 2024-09-30 03582673 e:FRS102 2023-10-01 2024-09-30 03582673 e:Audited 2023-10-01 2024-09-30 03582673 e:FullAccounts 2023-10-01 2024-09-30 03582673 e:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 03582673 d:Subsidiary1 2023-10-01 2024-09-30 03582673 d:Subsidiary1 1 2023-10-01 2024-09-30 03582673 d:WithinOneYear 2024-09-30 03582673 d:WithinOneYear 2023-09-30 03582673 d:BetweenOneFiveYears 2024-09-30 03582673 d:BetweenOneFiveYears 2023-09-30 03582673 d:MoreThanFiveYears 2024-09-30 03582673 d:MoreThanFiveYears 2023-09-30 03582673 6 2023-10-01 2024-09-30 03582673 g:PoundSterling 2023-10-01 2024-09-30 iso4217:GBP xbrli:shares xbrli:pure


Registered number: 03582673












ARCUS INVESTMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

 

ARCUS INVESTMENT LIMITED
 
COMPANY INFORMATION


Directors
Mark Pearson 
Edward Cartwright 
Lucy King 
Benjamin Williams 




Company secretary
Prism Cosec Limited



Registered number
03582673



Registered office
Highdown House
Yeoman Way

Worthing

West Sussex

BN99 3HH




Independent auditor
Blick Rothenberg Audit LLP

16 Great Queen Street

London

WC2B 5AH




Bankers
Barclays plc
13 Library Place

St Helier

Jersey

JE4 8NE




Solicitors
Macfarlanes LLP
20 Cursitor Street

London

EC4A 1LT





 

ARCUS INVESTMENT LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Results

The profit for the year, after taxation, amounted to £1,611,730 (2023:  £1,780,410).

Directors

The directors who served during the year were:

Mark Pearson 
Edward Cartwright 
Lucy King 
Benjamin Williams 

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 1

 

ARCUS INVESTMENT LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Public Disclosures

The firm has documented the disclosures required by the FCA under MIFIDPRU 8. They can be found on the website www.arcusinvest.com.

Auditor

Under section 487(2) of the Companies Act 2006Blick Rothenberg Audit LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 9 December 2024 and signed on its behalf.
 





................................................
Lucy King
Director

Page 2

 

ARCUS INVESTMENT LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Introduction
 
The principal activity of the Company during the period was that of investment fund management, and the Directors do not foresee any change in management policy. The Company is authorised and regulated in the UK by the Financial Conduct Authority.

Business review
 
Assets Under Management ('AUM') increased during the year. In addition, performance for some of the Funds managed by the Company was stronger than in the previous year.

Principal risks and uncertainties
 
The major risk faced by the Company is that the funds perform poorly, making it difficult to retain investors and to attract new investors. The company manages this risk by managing a range of funds with differing mandates.

Financial key performance indicators
 
The directors consider key performance indicator to be AUM. AUM have increased from £1,410 million to £1,829 million this year.

Directors' statement of compliance with duty to promote the success of the Company
 
The directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the Company for the benefit of its members, and in doing so had regard, amongst other matters, to;
(a) the likely consequences of any decision in the long term
The directors consider the medium and long term impact of decisions when formulating plans and strategic direction for the company.
(b) the interests of the Company’s employees
An ‘open’ environment is encouraged and the company aims to be a responsible employer in its approach to matters including pay and benefits, diversity and inclusion, training, development and career opportunities. 
(c) the need to foster the Company’s business relationships with service providers, customers and others
The Company engages with a variety of stakeholders, including but not limited to investors, the funds, regulators, and service providers, to inform and enable balanced decisions that incorporate multiple viewpoints, whilst maintaining the Company’s integrity, brand and reputation.
(d) the impact of the Company’s operations on the community and the environment
The directors are mindful of the business impact on the general community and society we operate within, as well as our environmental impact.
(e) the desirability of the Company maintaining a reputation for high standards of business conduct
The directors consider it crucial that the Company maintains a reputation for high standards of business conduct, and are responsible for setting, monitoring and upholding the culture, values, standards, ethics, brand and reputation of the Company.
(f) the need to act fairly as between members of the Company
The directors are in regular discussion with the shareholders of the Company and provide relevant information to them as and when required. 

Page 3

 

ARCUS INVESTMENT LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


This report was approved by the board on 9 December 2024 and signed on its behalf.



................................................
Lucy King
Director

Page 4

 

ARCUS INVESTMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARCUS INVESTMENT LIMITED
 FOR THE YEAR ENDED 30 SEPTEMBER 2024

Opinion
We have audited the financial statements of Arcus Investment Limited (the 'Company') for the year ended 30 September 2024, which comprise the statement of comprehensive income, the statement of financial position, the statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 ReportOur 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.

Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the 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.

Page 5

 

ARCUS INVESTMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARCUS INVESTMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

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 directors' 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 set out on page 1, 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
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: enquiring of management concerning the Company’s policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the Company’s policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the Company’s policies in relation to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential
indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the Company operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Company. The key laws and regulations we considered in this context included the UK Companies Act 2006, the Financial Services and Markets Act 2000 and applicable tax legislation.
One particular focus area was the risk of fraud through management override of controls. Our procedures to respond to risks identified included the following: performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reviewing the bank statements of the Company for evidence of any large or unusual activity which may be indicative of fraud;
Page 6

 

ARCUS INVESTMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARCUS INVESTMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

enquiring of management in relation to any potential litigation and claims; and testing the appropriateness of journal entries and other adjustments.
Another focus area was non-compliance with the rules of the Financial Conduct Authority (‘the FCA’). The Company was authorised and regulated by the FCA throughout the period. Our procedures to respond to risks identified included the following: reviewing correspondence between the Company and the FCA, performing analytical review to detect receipts of client money and remaining alert to the possibility of accidental receipt of client monies; and discussion of regulatory matters with the appointed officers of the Company.
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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 2006Our 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.




Shaun Melvin (senior statutory auditor)
for and on behalf of
Blick Rothenberg Audit LLP
Statutory Auditor
16 Great Queen Street
London
WC2B 5AH

9 December 2024
Page 7

 

ARCUS INVESTMENT LIMITED
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£
£

  

Turnover
 3 
30,253,079
20,443,664

Cost of sales
  
(4,321,984)
(2,828,035)

Gross profit
  
25,931,095
17,615,629

Administrative expenses
  
(25,067,514)
(17,041,878)

Operating profit
 4 
863,581
573,751

Fair value movements
  
1,057,831
1,701,237

Interest receivable and similar income
  
212,938
51,769

Profit before tax
  
2,134,350
2,326,757

Tax on profit
 7 
(522,620)
(546,347)

Profit after tax
  
1,611,730
1,780,410

  

  

Retained earnings at the beginning of the year
  
8,462,820
6,682,410

  
8,462,820
6,682,410

Profit for the year
  
1,611,730
1,780,410

Dividends declared and paid
  
(491,480)
-

Retained earnings at the end of the year
  
9,583,070
8,462,820
There was no other comprehensive income for 2024 or 2023.

The notes on pages 11 to 20 form part of these financial statements.

Page 8


 
REGISTERED NUMBER:03582673
ARCUS INVESTMENT LIMITED

STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 8 
24,490
5,831

Investments
 9 
14,626,243
13,568,412

  
14,650,733
13,574,243

Current assets
  

Debtors: amounts falling due after more than one year
 10 
550,375
1,008,665

Debtors: amounts falling due within one year
 10 
3,027,923
1,542,708

Cash and cash equivalents
  
21,420,863
13,871,570

  
24,999,161
16,422,943

Creditors: amounts falling due within one year
 11 
(22,398,366)
(14,130,365)

Net current assets
  
 
 
2,600,795
 
 
2,292,578

Total assets less current liabilities
  
17,251,528
15,866,821

Provisions for liabilities
  

Deferred tax
 12 
(1,606,168)
(1,341,711)

  
 
 
(1,606,168)
 
 
(1,341,711)

Net assets
  
15,645,360
14,525,110


Capital and reserves
  

Called up share capital 
 13 
4,488,280
4,488,280

Share premium account
  
728,506
728,506

Capital redemption reserve
  
845,504
845,504

Profit and loss account
  
9,583,070
8,462,820

Total capital and reserves
  
15,645,360
14,525,110


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 December 2024.




................................................
Lucy King
Director

The notes on pages 11 to 20 form part of these financial statements.

Page 9

 

ARCUS INVESTMENT LIMITED

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,611,730
1,780,410

Adjustments for:

Depreciation of tangible assets
17,546
7,694

Taxation charge
522,620
546,347

Increase in debtors
(1,026,925)
(359,041)

Increase in creditors
8,283,446
7,908,567

Corporation tax paid
(273,608)
-

Revaluation of investments
(1,057,831)
(1,701,237)

Net cash generated from operating activities

8,076,978
8,182,740


Cash flows from investing activities

Purchase of tangible fixed assets
(36,205)
(8,177)

Purchase of unlisted and other investments
-
(106,676)

Sale of unlisted and other investments
-
105,107

Net cash used in investing activities

(36,205)
(9,746)

Cash flows from financing activities

Dividends paid
(491,480)
-

Net cash used in financing activities
(491,480)
-

Net increase in cash and cash equivalents
7,549,293
8,172,994

Cash and cash equivalents at beginning of year
13,871,570
5,698,576

Cash and cash equivalents at the end of year
21,420,863
13,871,570


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
21,420,863
13,871,570

21,420,863
13,871,570


The notes on pages 11 to 20 form part of these financial statements.

Page 10

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

Arcus Investment Limited is a private limited company registered in England and Wales. The Company's registered address is Highdown House, Yeoman Way, Worthing, West Sussex, BN99 3HH. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. Management do not consider there are any key accounting estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
Management are also required to exercise judgment in applying the Company's accounting policies. Due to the straightforward nature of the business, management consider that no critical judgements have been made in applying the Company's accounting policies.
The Company owns 100% of Arcus South East Asia SDN.BHD. Group accounts have not been prepared on the basis that the subsidiary's inclusion in the consolidation is immaterial. The financial statements therefore present information about the Company as an individual undertaking and not about its group.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis. Having reviewed the financial projections of the Company, the Directors consider it has sufficient cash resources to meet its financial obligations for a period of at least 12 months from the date of approval of these financial statements. The Company has a strong balance sheet, and in the event of stressed scenarios the fixed asset investments are sufficiently liquid to ensure the Company is able to meet its liabilities as they fall due.

  
2.3

Consolidation

The directors consider that the inclusion of the company's subsidiary would not be material for the purpose of giving a true and fair view. These financial statements therefore present information about the company as an individual undertaking and not its group.

 
2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Revenue represents management and performance fees receivable. Investment management fees are recognised when they are earned, based on specific management agreements. Performance fees are recognised when they crystallise and the criteria for payment have therefore been met.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is charged so as to allocate the cost of assets less their residual value over their
Page 11

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.5
Tangible fixed assets (continued)

estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Office equipment
-
2
years



 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the statement of comprehensive income for the period.

 
2.7

Financial instruments

The Company does not trade in financial instruments and, apart from its fixed asset investments, all such investments arise directly from operations.
All trade and other debtors are initially recognised at transaction value, as none contain in substance a financing transaction. Thereafter trade and other debtors are reviewed for impairment where there is objective evidence based on observable data that the balance may be impaired. The Company does not hold collateral against its trade and other receivables so its exposure to credit risk is the net balance of trade and other debtors after allowance for impairment.
The Company's cash holdings comprise on demand balances and all cash is held with banks with strong external credit ratings.
Trade and other creditors and accruals are initially recognised at transaction value as none represent a financing transaction. They are only derecognised when they are extinguished. As the Company only has short term receivables and payables, its net current asset position is a reasonable measure of its liquidity at any given time.

Page 12

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.8

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

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 period 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 period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss the statement of income and retained earnings.

 
2.9

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term.

 
2.10

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 13

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.



3.


Turnover

Analysis of turnover by country of destination:

2024
2023
£
£

European Union
17,643,205
12,582,602

North America
12,609,874
7,861,062

30,253,079
20,443,664



4.


Operating profit

The operating profit is stated after charging/(crediting):

2024
2023
£
£

Depreciation of tangible fixed assets
17,546
7,694

Fees payable to Company's auditor and its associates for the audit of the Company's annual financial statements
22,250
21,000

Auditor's remuneration - non-audit
18,630
18,350

Exchange differences
235,534
968,517

Other operating lease rentals
209,346
109,455

Page 14

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

5.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
14,083,777
8,664,243

Social security costs
1,974,814
1,232,030

Cost of defined contribution scheme
80,972
47,462

16,139,563
9,943,735


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
4
4



Administrators
10
8

14
12


6.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
12,335,776
7,416,119

12,335,776
7,416,119


The highest paid director received remuneration of £9,434,140 (2023: £5,432,647).


Page 15

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

7.


Taxation


2024
2023
£
£

Current tax


UK Corporation tax on profits for the year
266,022
131,465

Adjustments in respect of previous periods
(7,859)
(21,404)


Total current tax
258,163
110,061

Deferred tax


Deferred tax
264,457
436,286

Total deferred tax
264,457
436,286


Tax on profit
522,620
546,347

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023: 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,134,350
2,326,757


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 25%)
533,588
581,689

Effects of:


Expenses not deductible for tax purposes
5,349
704

Adjustments to tax charge in respect of prior periods
(7,859)
(21,404)

Group relief claimed in the year
(4,786)
(7,480)

Short-term timing difference leading to an increase (decrease) in taxation
(3,672)
10,709

Adjustment as a result of change in tax rate
-
(17,871)

Total tax charge for the year
522,620
546,347

Page 16

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

8.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 October 2023
55,180


Additions
36,205


Disposals
(36,891)



At 30 September 2024

54,494



Depreciation


At 1 October 2023
49,349


Charge for the year
17,546


Disposals
(36,891)



At 30 September 2024

30,004



Net book value



At 30 September 2024
24,490



At 30 September 2023
5,831


9.


Fixed asset investments





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 October 2023
346,941
13,221,471
13,568,412


Revaluations
-
1,057,831
1,057,831



At 30 September 2024
346,941
14,279,302
14,626,243




Page 17

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Arcus South East Asia SDN.BHD
Malaysia
Ordinary
100%

The subsidiary's registered address is Quest Secretarial Sdn Bhd, Upper Penthouse, Wisma RKT No.2 Jalan Raja Abdullah, Off Jalan Sultan Ismail, 50300, Kuala Lumpur, Malaysia. 

The aggregate of the share capital and reserves as at 30 September 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Net assets £
Profit £

Arcus South East Asia SDN.BHD
444,798
40,784


10.


Debtors

2024
2023
£
£

Due after more than one year

Other debtors
550,375
1,008,665

Due within one year

Trade debtors
2,326,283
1,063,731

Amounts owed by group undertakings
138,092
112,011

Other debtors
184,008
289,876

Prepayments and accrued income
379,540
77,090

3,578,298
2,551,373



11.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
46,230
75,371

Amounts owed to group undertakings
693,949
939,782

Corporation tax
116,020
131,465

Other taxation and social security
68,643
57,358

Other creditors
39,652
59,979

Accruals and deferred income
21,433,872
12,866,410

22,398,366
14,130,365


Page 18

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Deferred taxation




2024
2023


£

£






At beginning of year
(1,341,711)
(905,425)


Charged to profit or loss
(264,457)
(436,286)



At end of year
(1,606,168)
(1,341,711)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Unrealised gains on fixed asset investments
(1,763,030)
(1,498,573)

Capital losses available to offset future gains
156,862
156,862

(1,606,168)
(1,341,711)


13.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



44,882,800 Ordinary shares of £0.10 each
4,488,280
4,488,280



14.


Commitments under operating leases

At 30 September 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
220,000
205,000

Later than 1 year and not later than 5 years
-
-

Later than 5 years
-
-

220,000
205,000

Page 19

 

ARCUS INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

15.


Related party transactions

During the year to 30 September 2017 the company sold its interest in Arcus Investment Asia Limited ('AIAL') to Arcus Cayman Limited ('ACL'), a company incorporated in the Cayman Islands and under common control. During the year to 30 September 2019, the company sold its interest in Arcus Research Limited ('ARL') to ACL. Interest of £41,825 (2023: £51,769) has been charged on these transactions during the year. The total amount included within debtors as at 30 September 2024 in respect of these transactions is £550,375 (2023: £1,008,665).
During the year, the company received administrative services from ARL and Arcus South East Asia SDN. BHD. (‘ASEA’) and was charged £5,971,870 (2023: £3,583,129) by ARL and £1,156,285 (2023: £1,006,504) by ASEA. As at the balance sheet date, the company owed £45,784 (2023: £143,596) to AIAL, £62,413 (2023: £172,048) to ASEA and £628,092 (2023: £596,790) to ARL.
During the year, the company also paid certain administrative expenses on behalf of Arcus Investment Holdings Limited ('AIHL'), a company under common control, Arcus Jersey Limited ('AJL'), the immediate parent company and ACL. As at the balance sheet date, AIHL owed the company £39,208 (2023: £27,891), AJL owed the company £66,278 (2023: £51,278) and ACL owed the company £6,567 (2023: £5,394).
The company provided an interest-free loan of £30,000 to Megumi Trust, a shareholder in AJL. The total amount included within other debtors as at 30 September 2024 in respect of this transaction was £30,000 (2023: £30,000).


16.


Controlling party

The immediate and ultimate parent undertaking is Arcus Jersey Limited, a company incorporated in Jersey.
The ultimate controlling party is Mark Pearson.


17.


Subsequent Events

The directors declared interim dividends in the amount of £798,065 as on 9 December 2024.
Apart from the above, the directors have evaluated all subsequent transactions and events after 30 September 2024 through to the date that these financial statements were signed and no additional items require disclosure or adjustment in the financial statements.

Page 20