Company Registration No. 02705948 (England and Wales)
BLACKFINCH INVESTMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
BLACKFINCH INVESTMENTS LIMITED
COMPANY INFORMATION
Directors
Mr R J Cook
Mr R L Simmonds
Company number
02705948
Registered office
1350-1360 Montpellier Court
Brockworth
Gloucester
GL3 4AH
Auditor
Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
Bankers
Lloyds Bank plc
48 Belle Vue Terrace
Malvern
Worcestershire
WR14 4PZ
BLACKFINCH INVESTMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
BLACKFINCH INVESTMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report and financial statements for the year ended 31 December 2024.

 

The principal activity of the company continued to be that of the provision of agency services in respect of investment services.

Review of the business

The company raised a healthy level of new investment into the business which has assisted with the continued growth. Over the course of 2024 the business progressed with projects aimed to diversify revenue streams and to widen the customer base.

 

The results for the company show a pre tax profit of £3,362,652 for the period (2023 : £3,942,972) on turnover of £21,336,662 (2023 : £18,111,059).

 

The company paid dividends of £2,050,000 (2023 : £2,050,000) and there were no significant events requiring disclosure in the financial statements after the balance sheet date.

 

The company has debt of £116,520 (2023 : £162,904) and shareholder's funds amount to £5,550,470 (2023 : £4,700,769).

Principal risks and uncertainties

Key risks and uncertainties relate to the cost-of-living crisis and the UK’s Autumn Budget announcements in October 2024, which saw proposed impacts to several products. Investments performed in line with expectations and client investment redemptions were managed successfully. The business has continued to raise a healthy flow of new funds and investment management activities continue to generate revenue. The management team are confident in the company's resilience and ability to trade and adjust to future risk and uncertainties.

 

Section 172 (1) Statement

The Directors have acted in a way that they considered, in good faith, to be the most likely to promote the success of Blackfinch Investments Limited for the benefit of its stakeholders, and in doing so had regard, amongst other matters to:

These matters were achieved by the Directors in the following ways:

Long term view

The Directors carry out a robust and thorough assessment of the risks faced by the company, this defines the strategic objectives and long-term viability of the company and allows it to remain in a healthy and stable condition.

Employees

Our employees are critical to the progression of the company moving forwards, we value every member and improve systems to enhance the working environment where possible. The working conditions for our teams allows flexibly work from home. An enhanced employee benefits package is also in place.

BLACKFINCH INVESTMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Customers

We aim to deliver a truly outstanding customer experience that is clear, concise and provide a rewarding journey.

We have made a portal which empowers our customers to obtain real time information and have efficient communication channels that enables strong business relationships.

Suppliers

We aim to treat suppliers fairly and pay them within agreed timescales, holding ourselves to high standards of business conduct.

Community and environment

Community and environment is a core pillar of the company’s framework. We work to ensure that any impact on the environment is positive; that we always consider social responsibility; and that the Group makes governance a priority.

On behalf of the board

Mr R J Cook
Director
24 April 2025
BLACKFINCH INVESTMENTS 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 continued to be that of the provision of agency services in respect of investment services.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,050,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R J Cook
Mr R L Simmonds
Auditor

In accordance with the company's articles, a resolution proposing that Kendall Wadley LLP be reappointed as auditor of the company will be put at a General Meeting.

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.

On behalf of the board
Mr R J Cook
Director
24 April 2025
BLACKFINCH INVESTMENTS 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:

 

 

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.

BLACKFINCH INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLACKFINCH INVESTMENTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Blackfinch Investments Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

BLACKFINCH INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLACKFINCH INVESTMENTS 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:

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.

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:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

BLACKFINCH INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLACKFINCH INVESTMENTS LIMITED (CONTINUED)
- 7 -

 

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

Elizabeth Needham ACA CTA (VAT)
Senior Statutory Auditor
For and on behalf of Kendall Wadley LLP
24 April 2025
Chartered Accountants
Statutory Auditor
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
BLACKFINCH INVESTMENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
21,336,662
18,111,059
Cost of sales
(465,192)
(419,531)
Gross profit
20,871,470
17,691,528
Administrative expenses
(17,587,407)
(13,758,167)
Other operating income
77,108
6,885
Operating profit
4
3,361,171
3,940,246
Interest receivable and similar income
8
52,928
19,417
Interest payable and similar expenses
9
(51,552)
(18,531)
Amounts written off investments
10
105
1,840
Profit before taxation
3,362,652
3,942,972
Tax on profit
11
(462,951)
(563,967)
Profit for the financial year
2,899,701
3,379,005

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

BLACKFINCH INVESTMENTS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
12,921
51,686
Investments
14
6,141
13,416
19,062
65,102
Current assets
Debtors
16
6,823,249
5,673,230
Cash at bank and in hand
1,331,480
1,456,546
8,154,729
7,129,776
Creditors: amounts falling due within one year
17
(2,558,146)
(2,371,217)
Net current assets
5,596,583
4,758,559
Total assets less current liabilities
5,615,645
4,823,661
Creditors: amounts falling due after more than one year
18
(65,175)
(117,167)
Provisions for liabilities
Deferred tax liability
20
-
0
5,725
-
(5,725)
Net assets
5,550,470
4,700,769
Capital and reserves
Called up share capital
22
85,000
85,000
Profit and loss reserves
5,465,470
4,615,769
Total equity
5,550,470
4,700,769
The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
Mr R J Cook
Director
Company registration number 02705948 (England and Wales)
BLACKFINCH INVESTMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
85,000
3,286,764
3,371,764
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
3,379,005
3,379,005
Dividends
12
-
(2,050,000)
(2,050,000)
Balance at 31 December 2023
85,000
4,615,769
4,700,769
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
2,899,701
2,899,701
Dividends
12
-
(2,050,000)
(2,050,000)
Balance at 31 December 2024
85,000
5,465,470
5,550,470
BLACKFINCH INVESTMENTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,515,850
2,941,429
Interest paid
(51,552)
(18,531)
Income taxes paid
(553,288)
(328,994)
Net cash inflow from operating activities
1,911,010
2,593,904
Investing activities
Proceeds on disposal of tangible fixed assets
-
0
12,961
Proceeds from investment
7,380
-
0
Interest received
52,928
19,417
Net cash generated from investing activities
60,308
32,378
Financing activities
Payment of finance leases obligations
(46,384)
(63,471)
Dividends paid
(2,050,000)
(2,050,000)
Net cash used in financing activities
(2,096,384)
(2,113,471)
Net (decrease)/increase in cash and cash equivalents
(125,066)
512,811
Cash and cash equivalents at beginning of year
1,456,546
943,735
Cash and cash equivalents at end of year
1,331,480
1,456,546
BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Blackfinch Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1350-1360 Montpellier Court, Brockworth, Gloucester, GL3 4AH.

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.

Blackfinch Investments Limited is a wholly owned subsidiary of Blackfinch Group Limited and the results of Blackfinch Investments Limited are included in the consolidated financial statements of BF Inter Limited which are available from 1350-1360 Montpellier Court, Gloucester Business Park, Gloucester, GL3 4AH.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for arrangement and exit fees, legal fees, management and ongoing monitoring fees and other fees for investment products during the period, exclusive of Value Added Tax.

 

The company recognises the commission income from investment portfolios completed only when full legal title has been granted.

 

The company recognises the investment management fees in line with the agreements held with the investors.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Motor vehicles
33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Fixed asset investments

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

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

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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

 

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

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

1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, 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 receipts 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Taxation

The tax expense represents the sum of the tax currently payable.

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.

 

Group relief is paid for in full at the rate of corporation tax prevailing in respect of the year of surrender.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Management and admin fees
7,463,920
6,229,069
Other commission
3,505,679
4,619,533
Sales fees
6,202,058
2,795,522
Investment management fees
2,144,230
1,966,015
Directors and monitoring fees
817,193
769,939
Arrangement, legal and exit fees
1,203,582
1,730,981
21,336,662
18,111,059
2024
2023
£
£
Turnover analysed by geographical market
UK sales
21,336,662
18,111,059
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
929
1,370
Fees payable to the company's auditor for the audit of the company's financial statements
23,500
14,800
Depreciation of owned tangible fixed assets
38,765
35,724
BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
23,500
14,800
6
Employees

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

2024
2023
Number
Number
Administrative
124
111
Directors
2
2
Total
126
113

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
11,329,335
9,317,700
Social security costs
1,317,177
1,054,193
Pension costs
576,906
468,154
13,223,418
10,840,047
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
503,808
251,122
Company pension contributions to defined contribution schemes
6,000
3,000
509,808
254,122

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

BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
503,808
251,122
Company pension contributions to defined contribution schemes
6,000
3,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
52,928
19,417
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
11,803
17,055
Other interest
39,749
1,476
51,552
18,531
10
Amounts written off investments
2024
2023
£
£
Amounts written back to financial assets held at cost
105
1,840
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
868,290
949,577
Adjustments in respect of prior periods
(396,289)
(377,889)
Total current tax
472,001
571,688
Deferred tax
Origination and reversal of timing differences
(9,050)
(7,721)
Total tax charge
462,951
563,967
BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Taxation
(Continued)
- 19 -

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

2024
2023
£
£
Profit before taxation
3,362,652
3,942,972
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
840,663
927,426
Tax effect of expenses that are not deductible in determining taxable profit
18,577
14,863
Adjustments in respect of financial assets
-
0
(433)
Research and development tax credit
(396,289)
(377,889)
Taxation charge for the year
462,951
563,967

The prior year adjustment is for the 2023 research and development claim and in 2023 the adjustment relates to research and development claims for 2022.

12
Dividends
2024
2023
£
£
Final paid
2,050,000
2,050,000
13
Tangible fixed assets
Motor vehicles
£
Cost
At 1 January 2024 and 31 December 2024
333,524
Depreciation and impairment
At 1 January 2024
281,838
Depreciation charged in the year
38,765
At 31 December 2024
320,603
Carrying amount
At 31 December 2024
12,921
At 31 December 2023
51,686
BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
1
1
Unlisted investments
6,140
13,415
6,141
13,416
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2024
1
13,415
13,416
Valuation changes
-
105
105
Disposals
-
(7,380)
(7,380)
At 31 December 2024
1
6,140
6,141
Carrying amount
At 31 December 2024
1
6,140
6,141
At 31 December 2023
1
13,415
13,416
15
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Blackfinch Nominees Limited
1350 - 1360 Montpellier Court, Brockworth, Gloucester, England, GL3 4AH
Dormant
Ordinary
100.00
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
505,978
574,697
Amounts owed by group undertakings
5,498,878
4,416,239
Other debtors
20,921
159,059
Prepayments and accrued income
794,147
523,235
6,819,924
5,673,230
Deferred tax asset (note 20)
3,325
-
0
6,823,249
5,673,230
BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
51,345
45,737
Payments received on account
9,600
37,500
Trade creditors
403,011
285,830
Amounts owed to group undertakings
191,179
184,268
Corporation tax
868,290
949,577
Other taxation and social security
190,137
-
0
Accruals and deferred income
844,584
868,305
2,558,146
2,371,217
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
65,175
117,167
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
57,303
57,303
In two to five years
78,654
135,957
135,957
193,260
Less: future finance charges
(19,437)
(30,356)
116,520
162,904

Finance lease payments represent rentals payable by the company for motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
20
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Asset/(Liabilities)
Assets/(Liabilities)
2024
2023
Balances:
£
£
Capital Allowances
(429)
(9,505)
Investment revaluations
3,210
3,780
Investment losses
544
-
3,325
(5,725)
2024
Movements in the year:
£
Liability at 1 January 2024
5,725
Credit to profit or loss
(9,050)
Asset at 31 December 2024
(3,325)

The deferred tax liability set out above is expected to reverse in the foreseeable future.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
576,906
468,154

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.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
850,000
850,000
85,000
85,000
BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
23
Financial commitments, guarantees and contingent liabilities

The banking arrangements of Blackfinch Corporate Services Limited, a fellow subsidiary of Blackfinch Group Limited are secured by a charge over £500,000 held on deposit with the bank on 23rd December 2010. At 31 December 2024, Blackfinch Corporate Services Limited owed Lloyds Bank plc £nil (2023 £nil).

 

The property in Rcs Solutions Ltd, 1145 Regent Court, a fellow subsidiary of Blackfinch Group Limited is secured by a series of charges on Blackfinch Investments Limited.

 

Blackfinch Investments Limited is a guarantor for their product investment companies.

 

 

24
Related party transactions

The company is a 100% owned subsidiary of Blackfinch Investment Group International Limited. The company has therefore elected to make use of the exemption provided in FRS102.33.1A (Related Party Transactions) not to disclose related party transactions with other members of the group.

25
Ultimate controlling party

The ultimate parent company is BF Inter Ltd, a company registered in England and Wales, which owns 100% of the issued share capital of Blackfinch Group Limited, the immediate parent company. The ultimate controlling party is Richard Cook who owns 55% of the share capital in BF Inter Ltd.

26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,899,701
3,379,005
Adjustments for:
Taxation charged
462,951
563,967
Finance costs
51,552
18,531
Investment income
(52,928)
(19,417)
Depreciation and impairment of tangible fixed assets
38,765
35,724
Other gains and losses
(105)
(1,840)
Movements in working capital:
Increase in debtors
(1,146,694)
(1,335,937)
Increase in creditors
262,608
301,396
Cash generated from operations
2,515,850
2,941,429
BLACKFINCH INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
27
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,456,546
(125,066)
1,331,480
Obligations under finance leases
(162,904)
46,384
(116,520)
1,293,642
(78,682)
1,214,960
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