The directors present the strategic report for the year ended 31 December 2024.
The principal activities of the group continued to be that of the provision of discretionary investment management services in the wealth management sector, with a secondary activity of designing and licensing its Intellectual Property.
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect growth in the foreseeable future.
The directors are satisfied with the results for the year ended 31 December 2024, which show a group turnover of £5,716,442 a 17.62% increase in turnover compared to the prior year. The group has made a profit of £338,435 after taxation. Key performance indicators are set out below on page 2.
There are various committees across the business that form informal advisory bodies. These informal bodies have advisory capabilities and act as an ideas tank that provides support and input to all the boards globally (group and distribution), including for this company.
The boards are responsible and accountable for ratifying budgets and delegate a certain amount of authority to executives to make financial decisions.
The board made a decision to continue to invest ethically which is detailed further under 'Community and Environment'.
A Delegation of Authority has been drawn up to delegate clear authority in decision making across our global federation. This document gives the relevant authority to the Managing Director of the subsidiary company, with the Managing Director of PortfolioMetrix UK Ltd as backup.
The asset management teams are required to select and invest in funds and instruments as part of the company. The Managing Directors of the asset management companies have the authority to delegate investment, trading and rebalancing authority to PortfolioMetrix group staff and companies in accordance with a robust internal control environment.
Research and development
In 2024, research and development efforts built upon the foundation established in 2023. While the focus in 2023 was on developing mechanisms for advisers and wealth managers to create multi-asset class central investment propositions, the emphasis in 2024 shifted to the complex management and institutionalization of these propositions. This included managing changes over time and providing accurate reporting in a dynamic and evolving environment.
The group is involved in continuous research and development, so that the product is always up to date as well as accommodating the changing needs of the end investor. Although the development is outsourced, the intellectual property for the worldwide rights, excluding Southern Africa, are owned by the company. For details on research and expenditure figures see note 4.
Future developments
New features and functionality are continuously being designed and added to WealthExplorer™ (or designed to be used as stand-alone modules in place of or alongside WealthExplorer™). We continue to develop portfolio visualisation tools to help investors better understand key components of their portfolio. Theoretically the product will never be complete as new components and modules evolve over time to best support advisors in the various markets in which PortfolioMetrix group operates.
Organic AUM growth in the UK remains the focus whilst in Ireland a number of strategic options are being explored which suits our technology and asset management capabilities.
The group is exposed to various risks in relation to financial instruments. The principal risks and uncertainties facing the group are liquidity risk and foreign currency exposure.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Group management regularly monitors Group liquidity to ensure, as far as possible, that there will always be sufficient liquidity to meet liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
Foreign currency exposure
The group is subject to foreign exchange risks as it purchases from overseas. Group management regularly monitors its foreign exchange risk and attempts to limit such risks by managing its cash and credit positions.
Other risks and uncertainties include the following:
Partner risk
Partner IFA firms potentially deciding to no longer work with the group remains the biggest risk to the business and had negatively affected the business in the past. The boards and executives remain well attuned to this particular risk.
Investment market risk
Investment market risk is the potential for losses due to fluctuations in market prices. This can affect the performance of our portfolios, the assets under management (AUM), and ultimately the outcomes for our investors. Such risks are inherent in any investment management business and are influenced by a myriad of factors including economic indicators, political events, and changes in interest rates. It is paramount for an investment management firm to have robust processes in place to navigate these uncertainties. Since 2010, our tried and tested procedures have aimed to mitigate the relative volatility risks, ensuring that while market fluctuations are inevitable, their impact on our portfolios and investor outcomes is minimized.
The group is in a strong financial position at the balance sheet date. Both cash and the net asset position are positive. The directors look to further improve on the financial position of the group, in order to increase growth and enhance reported results in future years.
The Key Performance Indicators for the group over the last two years are detailed below:
2024 2023
Turnover (GBP £'000) 5,716 4,860
Gross profit % 35.88 29.71
Net profit after tax % 5.92 3.20
Assets Under Management (£’bn) 1.78 1.17
Turnover has increased by 17.62% primarily as a result of increased assets under management, particularly from the Insourcing product. The current financial year saw a significant uptick in assets managed as a result of this new product, which although carries a lower fee margin, has higher volumes of inflows than the customised product
The gross profit margin has increased from 29.71% to 35.88%, as a result of a change in presentation of expenses from costs of sales to administration expenses.
The net profit after tax margin has increased from 3.20% to 5.92%, as a result of increased fee income and tax credits received from prior years.
In the opinion of the directors there are no non-financial key performance indicators which require specific disclosure.
Board decisions during the year
Dividends of £500,000 were declared during the year.
During the year, the directors have continued to maintain the group's position in the market and despite increased volatility in the global markets, the group remains profitable. It is expected that the group will continue to be profitable for the foreseeable future as a result of strong net inflows during 2024 with an increasing new business pipeline as we enter 2025.
No other major board decisions were made during the year.
The board has put in place a structured governance model, with scheduled board meetings and clear documentation and authority levels to control its decision-making process. The group's governance model supports the Group in ensuring that decisions are considered, documented and reported upon, and in alignment with our strategic plans. Detailed budgets and forecasts are prepared to enable the board to track performance and ensure that it is as expected, or that mitigation steps are taken to deliver performance in line with, or close to, expectations. The board and individual directors operate within this structure, with the aim of promoting the success of the company and delivering long-term shareholder value whilst also taking into account our commitments to ethical, environmental, and social responsibility and the impact on all stakeholders. Business proposals are documented in line with, and performance tracked against, levels of authority.
Interests of members of the group
The company is a private company and the parent company of PortfolioMetrix Asset Management Ltd. The day-to-day operations of the group are managed by the directors who are closely involved in the activities of the company and provide day-to-day support as and when required.
In common with many private companies the interests of the Board and the ultimate shareholders are broadly aligned in that the company should create value by generating strong and sustainable results.
People
Our people are key to our business, and an important part of our strategy is to retain our talented employees. Generally, asset management is a scarce and skilled resource.
We ensure that our staff remain invested in the business by listening to them and including their ideas in our decision-making process. We also continue to invest in the development of staff, both internally and through funding external qualifications like the Chartered Financial Analyst (CFA) exams.
PortfolioMetrix’s Global Best Practice Committee also consists of three sub-committees ultimately devoted to enhancing staff engagement and development: the Talent Working Group, the Corporate Social Responsibility Working Group and the Diversity and Inclusion Working Group.
Employee engagement
Our staff are key assets, and the board invests in the staff by encouraging continued development via both formal and informal training, coaching and improving of all relevant skills. People are a key part of our passion and the key role players in the long-term success of the company. Our people strategy focuses on driving learning, growth, accountability and integrity for each person at the company placing them at the centre of everything we do.
Society
In order to give back to society, staff are encouraged to engage in charitable initiatives. The Corporate Social Responsibility Working Group (part of the Global Best Practice Committee) assists management in harnessing the enthusiasm of staff, as well as financial resources of the business, in the furtherance of good causes (focused currently on education). As part of these initiatives, the company has also agreed to allow 1 day of volunteer leave for each staff member to pursue their own charitable endeavours.
The group wide Best Practices committee will recommend policies. Policies recommended by the Best Practice Committee are deemed to be approved by the Boards of Directors, unless Board of Directors specifically minutes an exception to the recommended policies.
Specifically, the group employees are authorised to spend on travel, accommodation, meals and client entertainment in accordance with the relevant policy.
It is important that the group builds, develops and maintains robust relationships with our financial advisers, being our key customers, as well as our supplies, which include external as well as internal relationships. By fostering these connections, we not only ensure the smooth operation of our business but also endorse our commitment to ethical and sustainable practices. Through transparent communication, fair dealings and mutual respect, we aim to build enduring partnerships that contribute to the growth and prosperity of all involved. Emphasising the importance of these relationships underscores our dedication to long-term success and responsible corporate citizenship. In addition, we have an intricate relationship with the Financial Conduct Authority (FCA), our regulator. Upholding these connections is integral to our commitment to regulatory compliance, integrity, and transparency in all aspects of our operations. Through open dialogue, timely reporting, and adherence to regulatory requirements, we strive to engender trust and confidence with the FCA, thereby safeguarding the interests of our stakeholders and ensuring the long-term sustainability of our business.
These relationships are key to ensure that all decisions are balanced and are based on being fully informed and incorporating all viewpoints, and so the Board oversees that they are properly maintained. In all cases, the board strategy is kept in mind.
Community and Environment
The company recognises the importance of climate change to society and has considered how to preserve the planet by aiming to minimise our carbon footprint. Part of this strategy is to work toward a paperless office, by reducing all printing internally as well as requesting that any documentation from outside the organisation be electronic only.
As part of its commitment to responsible investment, during 2020 PortfolioMetrix investigated signing up to the UN supported PRI (Principles for Responsible Investment). PortfolioMetrix has become a signatory of the PRI.
Cultures and values
Our values are Excellence, Integrity, Precision, Innovation and Partnerships.
These values are the drivers that enable the success of the company. With people at the centre of our culture, a significant focus is placed on the well-being of our people and maintaining the unique culture of the company; by nurturing this unique and enabling culture, and fostering a sense of purpose as well as giving our employees the opportunity to grow, develop and maintain a healthy life-balance.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 11.
Ordinary dividends were declared during the year amounting to £500,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The financial risk management objectives and policies of the group, including liquidity risk and foreign currency exposure are provided in the strategic report on page 2.
Details of research and development are provided in the strategic report on page 1.
Details of future developments are provided in the strategic report on page 1.
The auditor, RDP Newmans LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
We have audited the financial statements of Portfoliometrix Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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).
Basis for 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 group's and parent 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
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.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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 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, FCA regulation, taxation legislation and data protection, anti-bribery, and employment, environmental and healthy and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal 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 enquiries of management as to where they considered there was susceptibility to fraud, their 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.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
reviewed and tested journal entries to identify unusual transactions and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 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:
reviewing and agreeing financial statement disclosures and testing to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and bankers.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £614,762 (2023 - £47,462 loss).
PortfolioMetrix Holdings Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales (company registration number 10553183). The registered office is 66 Buckingham Gate, London, SW1E 6AU.
The group consists of PortfolioMetrix Holdings Limited and its subsidiary.
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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Portfoliometrix Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
PortfolioMetrix Asset Management Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of PortfolioMetrix Asset Management Limited.The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
Fee income is recognised at the fair value of the consideration received or receivable from the management of portfolios on behalf of investors during the normal course of business, and is shown net of VAT. The fair value of consideration takes into account rebates.
License fees receivable is recognised at the fair value of the consideration receivable from the use of intellectual property rights, and are shown net of VAT .
Other operating income
Management fees are recognised in the period to which they relate and are based on the recovery of certain expenses incurred. Management fees are shown net of VAT.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised on a straight line basis over the lease term.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including current asset investments and investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
In the application of the group’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.
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.
The annual amortisation charge for goodwill is sensitive to the changes in the estimated useful economic life and residual value of goodwill. The useful economic life and residual value are re-assessed annually. They are amended, when necessary, to reflect current estimates, based on expected future demand. The remaining useful economic life of the goodwill is considered a source of significant estimation uncertainty.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%. There has been no change to the corporation tax rates for the financial year ended 31 December 2024. For the financial year ended 31 December 2024 the weighted average tax rate is 25% (2023: 23.5%).
The actual charge for the year can be reconciled to the expected charge/(credit) based on the profit or loss and the standard rate of tax as follows:
At the year-end the group had unused tax losses amounting to £860,954 (2023: £956,206).
Details of the parent company's subsidiaries at 31 December 2024 are as follows:
The registered office of the subsidiary noted above is 66 Buckingham Gate, London, SW1E 6AU.
Other investments consists amounts invested in Collective Investment Schemes.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The outstanding contributions at the reporting date are £3,243 (2023: £2,411).
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
Other related parties is made up of companies in which there are common directors and/or shareholders with significant influence over the entities.
The group has taken advantage of the exemption available in FRS 102 Section 33 whereby it has not disclosed transactions between the parent company and its subsidiary undertaking.
All balances due to and from related parties are non-interest bearing, unsecured and repayable on demand. This is with the exception of loans from shareholders and directors. Interest payable on loans to shareholders and directors during the year amounted to £nil (2023: £2,194) and £nil (2023: £2,445) respectively.
No guarantees have been given or received.