Registration number:
EQT PARTNERS LIMITED
for the year ended 31 December 2024
EQT PARTNERS LIMITED
Company Information
|
Directors |
K E G Gunnarson J Nowen Wirkkala B A Janssens C Drews S D Griffiths |
|
Registered number |
06590781 |
|
Registered office |
|
|
Independent auditors |
|
EQT PARTNERS LIMITED
Contents
|
Strategic Report |
|
|
Directors' Report |
|
|
Statement of Directors' Responsibilities |
|
|
Independent Auditor's Report |
|
|
Statement of Profit and Loss |
|
|
Statement of Financial Position |
|
|
Statement of Changes in Equity |
|
|
Notes to the Financial Statements |
EQT PARTNERS LIMITED
Strategic Report
For the year ended 31 December 2024
Introduction
The directors present the Strategic Report and financial statements for the year ended 31 December 2024.
Business review
The Company's principal activity is to act as an advisor to EQT Fund Managers (primarily EQT Fund Management S.a.r.l. and LSP Advisory B.V.).
During 2024, the Company experienced further growth by increasing its revenues to £201,199,023 (£156,570,299 in 2023). This was mainly driven by increased advisory activities and associated costs, as revenue is driven by Transfer Pricing model arrangement which is mark-up on costs.
The average number of full-time equivalent employees increased and amounted to
Details of the results for the year are set out in the Statement of Profit and Loss. The Company recorded a profit after taxation for the year of £43,296,268 (2023: £32,529,052) and net assets of £87,460,887 (2023: £64,888,851).
Principal risks and uncertainties
Ongoing review of performance is carried out by comparing performance against set budgets. However, as the Company is managed as part of EQT AB, there are no significant key performance indicators that are specific to the Company. Institutional fund investors are serviced by the Fund Management team and supported by EQT’s in house Capital Raising team. Capital is allocated to EQT Funds, which in turn invest in portfolio companies. EQT Funds typically seek to make control or co-control investments in high quality companies with growth potential in attractive industries. EQT Fund Managers are advised by dedicated EQT Investment Advisory professionals with vast deal making experience, who support the portfolio companies in reaching their full potential plan with an active ownership approach, a clear governance model and a strong focus on performance and a detailed plan formed to execute on certain targets.
EQT PARTNERS LIMITED
Strategic Report
For the year ended 31 December 2024
Business risks
Weak fund performance
If the EQT Fund Managers, advised by the Company, were to perform unsatisfactorily, this could affect the carried interest and investment income received by the EQT AB Group, thereby affecting the profit share in the Company, and EQT AB Group’s liquidity for paying Advisory invoices.
All proposed investments go through a thorough due diligence and approval process during which all key aspects of the transactions, company and industry are discussed and assessed. In addition, the portfolio companies’ performances are monitored on an ongoing basis. Strong governance rights ensure EQT’s ability to influence the business strategy and execution of the business plan in the portfolio company. Finally, size limits per investment ensure that the fund is not materially affected by the underperformance of a single investment.
The funds managed by the EQT Fund Managers performed well during 2024 demonstrating on plan or above the plan performance.
Market conditions and changed trends in private markets
Difficult market conditions may impact the performance of the EQT funds by affecting the portfolio companies’ revenues and restricting their ability to source investment opportunities, exit investments, or obtain favourable debt financing for potential acquisitions. The EQT AB Group’s assets under management are also affected by market trends, including increased competition or the risk that fund investors may decrease their allocation to private markets. A reduction in EQT AB Group’s ability to raise funds would impact the Company by reducing Investment Advisory revenues and profit share in future years.
To meet the demands of fund investors, the EQT AB Group has a multi-strategy platform enabling fund investors to simplify their investment manager relationships by investing across multiple investment strategies with the same manager. EQT introduced two new strategies during 2024: EQT Healthcare Growth and EQT Transition Infrastructure. It also enhanced further its focus on private wealth.
In 2024, the global fund raising market saw lower volumes of completed fundraisings compared to 2023, extended fundraising timelines, and marginal improvements in liquidity dynamics as realization volumes across global private markets remained subdued. Larger managers with an established track-record attracted an outsized share of client commitments as clients consolidated their relationships with fewer managers, a trend which EQT benefited from.
EQT had one of its most active investment years ever, with total investments by the EQT funds amounting to EUR 22bn, an increase of 27% compared to 2023.
2024 was successful in fundraising across strategies including EQT X – the largest private equity fund raised globally in 2024.
EQT PARTNERS LIMITED
Strategic Report
For the year ended 31 December 2024
Strategic risks
Dependency on key personnel and network of advisors
The Company’s ability to recruit, retain and motivate employees is dependent on its ability to maintain a positive brand and reputation, uphold its corporate culture as well as to offer attractive compensation
arrangements.
The ability to attract, retain and develop talent is supported by several measures including e.g. a well-defined recruitment process, succession planning, a competitive and long-term approach to compensation, and a focus on development opportunities through the semi-annual performance review, coaching, mentoring and training platform (the “EQT Academy”).
Brand and reputation
EQT AB Group’s brand and reputation are of great importance in the competition for investors in, and investment opportunities for, the EQT funds. If brand and reputation were to deteriorate, EQT AB Group’s ability to attract and retain talent and raise funds would be negatively affected. A reduction in EQT AB Group’s ability to raise funds would impact the Company by reducing Advisory revenues and profit share in future years.
EQT AB Group has a dedicated Communications team and External Affairs, responsible for monitoring and responding to negative press, whether it is based on false rumours or accurate facts. The Information Policy mitigates the risk of disseminating inaccurate information by setting out roles and responsibilities in communicating on behalf of EQT as well as a routine for media relationships.
Legal, regulatory and governance risks
Regulatory risk compliance with laws and regulations
The Company’s business is subject to extensive regulations in the United Kingdom, as well as through directives and regulations, such as the Markets in Financial Instruments Directive, the Money Laundering Directive, the Market Abuse Regulation and is regulated by the Financial Conduct Authority. The EQT AB Group is also affected by laws, regulations and marketing rules in the jurisdictions of fund investors and EQT funds’ investments.
Failure to comply with applicable laws or regulations may limit the operations of the EQT AB Group and the Company, and lead to operational or sanction related costs, fund investor claims, rescission rights, or loss of fund approvals.
The Company has two Regulatory & Compliance Directors who operate independently from asset management activities and are responsible for ensuring that the Company has adequate measures and procedures to comply with its obligations and regulatory requirements.
Changing geopolitical conditions
The EQT AB Group’s business could be materially affected by political situations, including changes in laws and regulations, protectionism, national security measures and the overall geopolitical environment.
The EQT AB Group uses the services of reputable legal and tax advisors at central and local levels to ensure such developments come to attention and are dealt with in an efficient manner. Regulatory and tax developments arising from political situations are monitored by the Regulatory & Compliance team and the Tax & Structuring team.
EQT PARTNERS LIMITED
Strategic Report
For the year ended 31 December 2024
Tax risks
Inaccurate tax approach or change in tax laws
Tax developments are monitored by the Tax & Structuring team, supported by reputable tax advisors at central and local levels. This ensures that new tax rules and interpretations come into the Company’s focus and are dealt with in an efficient manner.
Operational risks
Risk of IT failure and loss or leak of information
The EQT AB Group processes and stores a variety of data both in electronic and physical form. Possible disruptions in the EQT AB Group’s data processing systems could adversely impact business operations if the system is down for a period of time or if data is lost or leaked.
The EQT AB Group uses both on premise and cloud storage facilities for storing, managing and using data. All data centres are guarded by modern firewalls with an around the clock team of technicians in multiple time zones. The EQT AB Group contracts with reputable IT vendors and has procedures in place to monitor service levels.
Fraud risk
Internal financial reporting controls include preventive measures such as segregation of duties, independent four eye checks on payments and changes of suppliers’ bank account details, as well as monthly cash reconciliations. The wider EQT AB Group has put in place various detection techniques, including a whistleblowing process, financial audits and user access reviews. Background checks and personality tests are conducted on prospective employees.
Financial risks
Credit, liquidity and foreign exchange risks
The financial risks are related to factors such as credit, liquidity and foreign exchange risks, which could lead to financial losses if not managed properly. Financial risks are reported to EQT AB Group's CFO on a regular basis to ensure they remain in line with the EQT AB Group’s risk profile.
The revenue of the Company is based on a cost-based remuneration for "routine" services including an arm's length profit mark up, along with an arm's length profit share as remuneration for "non routine" services. Management has no reason to believe that the revenues for 2024 will not be collected because of the limited credit risk of the counterparties to the Company, who earn significantly larger revenues from managing other EQT fund vehicles and therefore have sufficient liquidity to continue paying the Company’s revenues as they fall due. The revenue earned by the Company’s counterparties is obtained from a diverse set of large, sophisticated investors with very limited default risk.
Liquidity risk may arise in relation to the operations of the Company, where cash inflows from management fees are not sufficient in timeliness or size to meet cash obligations. Along with the Treasury team, the local finance team monitors and reports on those risk exposures on a periodic basis.
The Company’s financial income is exposed to currency exchange rates (currency risks). The group do not consider this a significant risk.
EQT PARTNERS LIMITED
Strategic Report
For the year ended 31 December 2024
Directors' statement of compliance with duty to promote the success of the Company
In accordance with Section 172 of the Companies Act 2006, the directors have considered the interests of the Company and its stakeholders. In discharging their duties under Section 172, the directors have considered the Company’s purpose and values, together with strategic priorities, while ensuring that the decisions made are consistent and intended to promote the long-term success of the Company.
During the year ended 31 December 2024, the Board of the Company considers, as individuals and collectively, that it has acted in a way to promote the success of the Company for the benefit of its stakeholders, by having regard among other matters to the following:
• long-term consequences of any decisions;
• interests in employee wellbeing;
• the performance of the Company regarding its customer base;
• the need to foster and maintain relationships with the Company's suppliers;
• the impact of the Company's operations on the local community and environment.
Employees
The Board continued to promote effective employee engagement using number of initiatives:
• The Company utilises an employee annual engagement survey "Voice" designed to capture employee’s insights and perspectives to help shape a workplace where all thrive. This survey is essential in guiding actions that make EQT a great place to work.
• EQT Women’s International Network (“EQT WIN”) - an employee resource group aiming to increase gender diversity at EQT and helping to make the organization a more inclusive place for female professionals. Mental Wealth, an online coaching platform that helps EQT to empower all employees to better understand and look after their own mental health and care for others around them. EQT’s mental wellbeing strategy is aimed at 1) educating 2) increasing conversation and decreasing the stigma 3) encouraging preventative action.
Customers
As an entity within EQT AB Group, the customers of the Company are EQT Fund Managers which are advised by dedicated Investment Advisory professionals, actively supporting the portfolio companies of the Funds in reaching their full potential.
Suppliers
As an entity with the EQT AB Group, suppliers consist of both third-party vendors and inter-company entities that provide services at arm's length to the entity.
ESG
EQT’s focus and ambitions related to ESG (Environmental Social & Governance) matters have been set based on an analysis of the United Nations SDGs (Sustainable Development Goals) and through engagement with EQT’s stakeholders. EQT subsequently formulated its sustainability framework in three focus areas: Clean & Conscious, Diversity & Upskilling and Transparency & Accountability. Furthermore, the area of Innovation & Partnerships has been identified as an enabler to achieving the targets and ambitions.
EQT PARTNERS LIMITED
Strategic Report
For the year ended 31 December 2024
Organizational resources
To integrate and advance EQT's responsible investment and ownership practices within the organization, EQT has a dedicated Sustainability team focusing on how EQT can lead by example. The Sustainability team works in close liaison with the entire organization, promotes sustainability awareness internally, follows up on the EQT Sustainability Blueprint together with business lines and engages with external stakeholders on sustainability aspects. In addition, all EQT business lines have Sustainability Ambassadors appointed to ensure complete dissemination of sustainability knowledge and best practice within the Advisory Teams.
Integrating sustainability into investments and ownership
EQT strives to instil sustainable business solutions and practices in all companies EQT invests in, from start-ups to mature companies. EQT applies responsible investment and ownership principles and practices as an integral part of each phase of the investment and value creation process. This extends from thematic sourcing to conducting thorough sustainability-focused due diligence to accelerate positive impact as an investor and owner.
This report was approved by the
|
......................................... |
EQT PARTNERS LIMITED
Directors' Report
For the year ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Principal activity
The principal activity of the Company is acting as an advisor to the EQT Fund Managers (primarily EQT Fund Management S.a.r.l. and LSP Advisory B.V.). In addition to this, the Company also provides other services such as Client Relations, Capital Raising, and Management Support services.
Directors
The directors who served during the year were:
Results and dividends
The profit for the year, after taxation, amounted to £43,296,268 (2023: £32,529,052).
Following the year end, the Board of Directors announced a 100% distribution of profits amounting to £43,296,268. This was approved on the same date as these financial statements. During the year, the Board of Directors announced and paid a final dividend of £32,529,052 from year 2023 profit (2023: paid £25,000,000 from year 2022).
Political donations
The Company made no political donations or incurred any political expenditure during the year (2023: £Nil).
Going concern
The Company has net assets of £87,460,887 at 31 December 2024 (2023: £64,888,851). The directors consider this to be sufficient for the Company to remain a going concern for at least twelve months from the date of approval of the financial statements and have been prepared on this basis. See Note 2.3 for further details.
Auditors
Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and KPMG LLP will therefore continue in office.
Disclosure of information to the auditors
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 auditors are 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 auditors are aware of that information.
EQT PARTNERS LIMITED
Directors' Report
For the year ended 31 December 2024
Future developments
The directors expect the entity to continue to operate as an advisor for the EQT Fund Managers detailed elsewhere in the Directors' Report for the foreseeable future. Another milestone that the Company will undertake is the legal merger with EQT Exeter Advisors UK Limited in January 2025 (details are noted in the Post balance sheet events of this Director’s Report).
Greenhouse gas emissions, energy consumption and energy efficiency action
EQT Partners Limited recognises the importance of its environmental responsibilities and, as such, monitors its impact on the environment and designs and implements policies to reduce its environmental impact, as described in the Strategic Report. The Company has used the Operational Control Approach as the organisational boundary for measuring energy efficiency. The Company's greenhouse gas emissions and energy consumption are as follows:
|
2024 |
2023 |
|
|
Emissions resulting from activities for which the Company is responsible involving the combustion of gas (in tonnes of CO2 equivalent) |
4 |
5 |
|
Emissions resulting from the purchase of the electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent) |
- |
- |
|
Energy consumed from activities for which the Company is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including for the purposes of transport, in kWh |
587,037 |
716,136 |
The Company did not have any emissions relating to the consumption of fuel for transport.
The methodology used in calculating the information is The GHG Protocol Corporate Accounting and Reporting Standard. Activity data includes, but is not limited to, purchase records, reports, and internal tracking controls. For further details, please refer to EQT AB’s Annual & Sustainability Report for 2024, which is available on EQT's website: www.eqtgroup.com
The principal measures the Company took for the purpose of increasing energy efficiency are as follows:
• Sourcing of Energy Attribution Certificates where renewable energy cannot be secured.
• In the process of identifying new offices, the energy credentials are something that is considered, and internal guidelines for office criteria, including sustainability, is under development.
The Company's intensity ratio is as follows:
• Energy consumption per full time employee: 3,243 kWh (2023: 4,838 kWh)
EQT PARTNERS LIMITED
Directors' Report
For the year ended 31 December 2024
Post balance sheet events
Dividend
After the balance sheet date, the Board of Directors announced a 100% distribution of profits of £43,296,268 equivalent to £865.91 per Ordinary share. The disclosures relevant to this have been included in the Directors' Report but the financial statements have not been adjusted to reflect this as it was proposed after the balance sheet date.
Merger
Effective 1 January 2025, the directors of EQT Partners Limited agreed to buy the business and assets of EQT Exeter Advisors UK Limited for an initial consideration of £5 million based on estimates of EQT Exeter Advisors UK Limted’s total net book value less retained regulatory capital. This will be settled through a Promissory Note, which will be finalised in 2025 once the latter's books are closed.
This report was approved by the
|
......................................... |
EQT PARTNERS LIMITED
Statement of Directors' Responsibilities in respect of the Strategic Report, the Directors' Report and the financial statements
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 UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 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 and then apply them consistently; |
|
• |
make judgements and accounting estimates that are reasonable and prudent; |
|
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
|
• |
assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and |
|
• |
use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. |
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
This report was approved by the
|
......................................... |
EQT PARTNERS LIMITED
Independent Auditor's Report to the Members of EQT Partners Limited
Opinion
We have audited the financial statements of EQT Partners Limited (“the Company”) for the year ended 31 December 2024 which comprise the Statement of Profit and Loss, Statement of Financial Position, Statement of Changes in Equity and related notes, including the accounting policies in note 2.
In our opinion the financial statements:
• | give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; 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 are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.
Our conclusions based on this work:
|
• |
we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate; |
|
• |
we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period. |
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.
Fraud and breaches of laws and regulations - ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
EQT PARTNERS LIMITED
Independent Auditor's Report to the Members of EQT Partners Limited
|
• |
Enquiring of directors as to the Company’s policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud; |
|
• |
Reading the Company’s meeting minutes; |
|
• |
Considering remuneration incentive schemes and performance targets; and |
|
• |
Using analytical procedures to identify any unusual or unexpected relationships. |
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
As required by auditing standards and taking into account our overall knowledge of the control environment, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because revenue is generated from few sources and transactions are easily verifiable to external sources or agreements with little or no requirement for estimation from management. We did not identify any additional fraud risks.
We performed procedures including identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included journals posted to revenue and cash.
Identifying and responding to risks of material misstatement due to compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management (as required by auditing standards) and from inspection of the Company’s regulatory correspondence and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.
As the Company is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Company’s regulatory permissions. We identified the following areas as those most likely to have such an effect: health and safety, anti-bribery, employment law, regulatory capital and liquidity and certain aspects of company legislation recognising the financial and regulated nature of the Company’s activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
EQT PARTNERS LIMITED
Independent Auditor's Report to the Members of EQT Partners Limited
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
Strategic Report and Directors' Report
The directors are responsible for the strategic report and the directors’ report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
|
• |
we have not identified material misstatements in the strategic report and the directors’ report; |
|
• |
in our opinion the information given in the strategic report and the directors’ report for the financial year is consistent with the financial statements; and |
|
• |
in our opinion those reports have been prepared in accordance with the Companies Act 2006. |
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required 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. |
We have nothing to report in these respects.
Directors’ responsibilities
As explained more fully in their statement set out on page 10, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
EQT PARTNERS LIMITED
Independent Auditor's Report to the Members of EQT Partners Limited
Auditor’s responsibilities
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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
The purpose of our audit work and to whom we owe our responsibilities
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.
......................................
For and on behalf of
Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
EQT PARTNERS LIMITED
Statement of Profit and Loss for the Year Ended 31 December 2024
|
Note |
2024 |
2023 |
|
|
Turnover |
|
|
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Operating profit |
55,101,575 |
40,213,033 |
|
|
Interest receivable and similar income |
|
|
|
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The Company has no recognised gains or losses for the year other than the results above.
EQT PARTNERS LIMITED
(Registration number: 06590781)
Statement of Financial Position
As at 31 December 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Tangible fixed assets |
13,355,153 |
15,190,518 |
|
|
13,355,153 |
15,190,518 |
||
|
Current assets |
|||
|
Debtors: amounts falling due within one year |
6,850,843 |
4,281,628 |
|
|
Cash at bank and in hand |
122,303,719 |
93,763,184 |
|
|
Deferred tax asset |
1,770,913 |
1,779,451 |
|
|
130,925,475 |
99,824,263 |
||
|
Current liabilities |
|||
|
Creditors: amounts falling due within one year |
(56,819,741) |
(50,125,930) |
|
|
Net current assets |
74,105,734 |
49,698,333 |
|
|
Net assets |
87,460,887 |
64,888,851 |
|
|
Capital and reserves |
|||
|
Called up share capital |
50,001 |
50,001 |
|
|
Capital contribution reserve |
20,829,902 |
20,829,902 |
|
|
Other reserves |
21,765,031 |
9,960,211 |
|
|
Profit and loss account |
44,815,953 |
34,048,737 |
|
|
|
|
The financial statements were approved and authorised for issue by the
|
......................................... |
EQT PARTNERS LIMITED
Statement of Changes in Equity
For the year ended 31 December 2024
|
Share capital |
Capital contribution reserve |
Other reserves |
Retained earnings |
Total |
|
|
At 1 January 2024 |
|
|
|
|
|
|
Comprehensive income for the year |
|||||
|
Profit for the year |
- |
- |
- |
|
|
|
Total comprehensive income for the year |
- |
- |
- |
43,296,268 |
43,296,268 |
|
Contributions by and distributions to owners |
|||||
|
Dividends |
- |
- |
- |
( |
( |
|
Share-based payment transactions |
- |
- |
11,804,820 |
- |
11,804,820 |
|
Total transactions with owners |
- |
- |
11,804,820 |
(32,529,052) |
(20,724,232) |
|
At 31 December 2024 |
|
|
|
|
|
EQT PARTNERS LIMITED
Statement of Changes in Equity
For the year ended 31 December 2024
|
Share capital |
Capital contribution reserve |
Other reserves |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
|
|
|
|
|
Comprehensive income for the year |
|||||
|
Profit for the year |
- |
- |
- |
32,529,052 |
32,529,052 |
|
Total comprehensive income for the year |
- |
- |
- |
|
|
|
Contributions by and distributions to owners |
|||||
|
Dividends |
- |
- |
- |
( |
( |
|
Share-based payment transactions |
- |
- |
5,157,563 |
- |
5,157,563 |
|
Total transactions with owners |
- |
- |
5,157,563 |
(25,000,000) |
(19,842,437) |
|
At 31 December 2023 |
|
|
|
|
|
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
|
General information |
The following accounting policies have been applied consistently in dealing with items which are considered significant in relation to the financial statements.
EQT Partners Limited is a private limited company, limited by shares, domiciled and incorporated in England and Wales. The registered office is 30 Broadwick Street, London, United Kingdom, W1F 8JB.
|
Accounting policies |
|
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 Company’s ultimate parent undertaking, EQT AB, includes the Company in its consolidated financial statements. The consolidated financial statements of EQT AB are prepared in accordance with International Financial Reporting Standards and are available to the public and may be obtained at www.eqtgroup.com. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the cash flow statement in accordance with FRS102 Section 1.11 and 1.12 and share based payment disclosures in accordance with Section 1.12(d).
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
|
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 measured reliably. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Turnover represents income earned during the year for advisory services performed for EQT Fund Managers, including capital raising and investor relations fees. The company also earns income recharging premises expenses to EQT Services (UK) Ltd. and EQT Exeter Advisors UK Ltd., as well as fees for administrative services performed for EQT AB.
During the year, the Company added a new revenue stream which is Debt Placement Fee, that is financing Intermediation services relating to debt raise, with the aim to achieve improved financing terms and replace adviser or intermediate bank involvement.
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
2 Accounting policies (continued)
2.2 Turnover (continued)
EQT employs a residual profit split model to compensate its advisory entities for providing investment advisory services. The aggregate service fee is made up of three components:
• A cost-based remuneration for ‘routine’ services, including an arm’s-length profit markup (commonly referred to as "cost-plus" remuneration).
• An arm’s-length profit share as compensation for ‘non-routine’ services (commonly known as "profit split" remuneration).
• The service fee for Capital Raising and Client Relations services follows a cost-based remuneration model, incorporating an arm’s-length profit markup ("cost-plus" remuneration).
Additionally, Management Advisory and Debt Placement fees are included within the Transfer Pricing framework. Both of these fees are remunerated using the profit split method.
|
Going concern |
The Company has net assets of £87,460,887 at 31 December 2024 (2023: £64,888,851). The directors consider this to be sufficient for the Company to remain a going concern for at least twelve months from the date of approval of the financial statements and have been prepared on this basis.
The revenue of the Company is based on a cost plus mechanism which is charged to counterparties whose revenue streams are contractual and not based on trade activity. Management has no reason to believe that the revenues for 2024 will not be collected because of the limited credit risk of the counterparties to the Company, who earn significantly larger revenues and therefore have sufficient liquidity to continue paying the Company’s revenues as they fall due. The revenue earned by the Company’s counterparties is obtained from a diverse set of large, sophisticated investors with very limited default risk.
On this basis, and after reviewing the Company’s performance projections, the directors are satisfied that the Company has adequate access to resources to enable it to meet its obligations and continue in operational existence for at least twelve months from the date of approval of these financial statements.
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
2 Accounting policies (continued)
|
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
• Short-term leasehold property - 6-9 years
• Fixtures and fittings - 5 years
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
|
Debtors |
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
|
Financial instruments |
|
Creditors |
Short-term creditors are measured at the transaction price and subsequently at amortised cost. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
2 Accounting policies (continued)
|
Equity instruments |
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
|
Share based payments |
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of Financial Position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition. The fair value of the award also takes into account non vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. In 2024, EQT continued offering Option Program consisting of options which upon exercise entitle the option holders to acquire ordinary shares in EQT AB. The first grant was awarded during the year and was based on the 2023 performance year. Costs related to these programs are recognized at EQT AB and pushed down to EQT Partners Limited under a recharge agreement. Under FRS 102 Section 1.12(d), the Company is exempt from certain disclosure requirements of Section 26 Share based Payments as equivalent disclosures are included in the consolidated financial statements of EQT AB, the ultimate parent company, include this entity. These financial statements are publicly available at www.eqtgroup.com.
|
Operating lease: 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, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
2 Accounting policies (continued)
|
Pensions |
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
|
Termination benefits |
Termination benefits are recognised in profit or loss in the period in which they are incurred or when management is reasonably certain that termination payments are probable.
|
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
|
Current and deferred taxation |
The tax expense for the period comprises current 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 taxable 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;
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
• Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Company can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
2 Accounting policies (continued)
2.16 Current and deferred taxation (continued)
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
|
Foreign currency translation |
Functional and presentation currency
The Company's functional and presentational currency is Pound Sterling (£).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary 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 except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement Profit and Loss within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
|
Related party disclosures |
Under FRS 102 Section 33, the Company is exempt from disclosing transactions within the group of companies headed by EQT AB as the consolidated financial statements presented by this entity include the Company. These financial statements are available at P.O. Box 16409, 103 27 Stockholm, Sweden.
Remuneration payable to directors is disclosed in Note 7.
|
Judgements in applying accounting policies and key sources of estimation uncertainty |
The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not clear from other sources. Actual results may differ from these estimates. In respect of the judgements, estimates and assumptions made by management in preparing these financial statements none are considered to have significant risk of causing a material adjustment to the carrying amount of assets and liabilities presented.
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
|
Turnover |
All turnover arose within the United Kingdom.
An analysis of turnover by class of business is as follows:
|
2024 |
2023 |
|
|
Investment advisory services |
150,358,136 |
123,200,621 |
|
Capital raising and investor relations fee |
39,973,084 |
25,110,036 |
|
Management advisory fees |
5,748,287 |
7,346,569 |
|
Debt placement service fee |
2,552,651 |
- |
|
Recharged premises expenses |
2,566,865 |
913,073 |
|
201,199,023 |
156,570,299 |
|
Operating profit |
The operating profit is stated after charging:
|
2024 |
2023 |
|
|
Fees payable to the Company's auditor for the audit of the Company's annual financial statements for the year |
58,075 |
50,000 |
|
Fees payable to the Company's auditor for Audit-related assurance services |
16,270 |
15,621 |
|
Foreign exchange loss |
4,223,372 |
1,099,041 |
|
Other operating lease rentals |
3,140,984 |
3,166,809 |
|
Depreciation of tangible fixed assets |
2,071,117 |
975,824 |
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
|
Employees |
Staff costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
65,313,872 |
53,633,109 |
|
Social security costs |
11,145,384 |
7,835,217 |
|
Cost of defined contribution scheme |
1,741,599 |
1,263,572 |
|
Severance pay |
981,368 |
1,118,368 |
|
Share based payment expense |
14,036,724 |
7,865,497 |
|
|
|
The average monthly number of persons employed by the Company (including directors) during the year was as follows:
|
2024 |
2023 |
|
|
Employees |
|
|
|
Directors' remuneration |
|
2024 |
2023 |
|
|
Directors' emoluments |
6,930,006 |
4,646,436 |
|
Company contributions to defined contribution pension schemes |
54,000 |
45,750 |
|
|
|
During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £2,777,065 (2023- £1,939,947).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,000 (2023- £15,750).
The total accrued pension provision of the highest paid director at 31 December 2024 amounted to £Nil (2023- £Nil).
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
|
Taxation |
|
2024 |
2023 |
|
|
Corporation tax |
||
|
Current tax on profits for the year |
16,951,619 |
11,977,141 |
|
Adjustments in respect of previous periods |
(1,747,998) |
(368,101) |
|
Total current tax |
|
|
|
Deferred tax |
||
|
Origination and reversal of timing differences |
(2,239,027) |
(1,691,231) |
|
Effects of changes in tax rates |
- |
(106,380) |
|
Adjustments in respect of previous periods |
2,247,565 |
(753) |
|
Total deferred tax |
|
( |
|
Taxation on profit on ordinary activities |
|
|
The tax on profit before tax for the year is
|
2024 |
2023 |
|
|
Profit on ordinary activities before tax |
58,508,427 |
42,339,728 |
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%) |
|
|
|
Effects of: |
||
|
Expenses not deductible |
85,486 |
363,555 |
|
Adjustments to tax charge in respect of prior periods |
499,566 |
(380,164) |
|
Tax rate changes |
- |
(106,380) |
|
Tax reliefs and incentives |
- |
(24,639) |
|
Total tax charge for the year |
15,212,159 |
9,810,676 |
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
|
Tangible fixed assets |
|
Short-term leasehold property |
Fixtures and fittings |
Total |
|||
|
£ |
£ |
£ |
|||
|
Cost or valuation |
|||||
|
At 1 January 2024 |
15,547,636 |
445,853 |
15,993,489 |
||
|
Additions |
315,646 |
- |
315,646 |
||
|
Disposals |
(41,788) |
(445,853) |
(487,641) |
||
|
At 31 December 2024 |
15,821,494 |
- |
15,821,494 |
||
|
Depreciation |
|||||
|
At 1 January 2024 |
508,007 |
294,964 |
802,971 |
||
|
Disposals |
(41,291) |
(366,457) |
(407,748) |
||
|
Charge for the year on owned assets |
1,999,625 |
71,493 |
2,071,118 |
||
|
At 31 December 2024 |
2,466,341 |
- |
2,466,341 |
||
|
Net book value |
|||||
|
At 31 December 2024 |
13,355,153 |
- |
13,355,153 |
||
|
At 31 December 2023 |
15,039,629 |
150,889 |
15,190,518 |
|
Debtors |
|
Current |
2024 |
2023 |
|
Amounts owed by group undertakings |
61,316 |
1,233,780 |
|
Amounts owed by EQT entities outside the group |
3,521,732 |
638,487 |
|
Other debtors |
642,551 |
805,124 |
|
Prepayments and accrued income |
2,625,244 |
1,604,237 |
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
Cash at bank and in hand |
122,303,719 |
93,763,184 |
|
122,303,719 |
93,763,184 |
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Trade creditors |
404,671 |
288,000 |
|
|
Amounts owed to group undertakings |
1,679,065 |
15,186 |
|
|
Bank overdraft |
1,428,900 |
- |
|
|
Corporation tax |
4,432,984 |
5,479,363 |
|
|
Other taxation and social security |
6,531,085 |
4,024,107 |
|
|
Accruals and deferred income |
|
|
|
|
|
|
|
Share capital |
|
2024 |
2023 |
|
|
Allotted, called up and fully paid |
£ |
£ |
|
50,001 Ordinary shares of £1.00 each |
50,001 |
50,001 |
All shares currently in issue were issued at par. The holders of Ordinary shares are entitled to one vote per share at meetings of the Company. All Ordinary shares rank equally with regard to the Company's residual assets.
|
Reserves |
|
2024 |
2023 |
|
|
Profit and loss account |
||
|
At beginning of year |
34,048,737 |
26,519,685 |
|
Profit/ (Loss) for the year |
43,296,268 |
32,529,052 |
|
Dividends paid |
(32,529,052) |
(25,000,000) |
|
At end of year |
|
|
The profit and loss account includes all current and prior period retained profits and losses.
|
2024 |
2023 |
|
|
Capital contribution reserve |
||
|
At beginning of year |
20,829,902 |
20,829,902 |
|
At end of year |
|
|
The capital contribution reserve is a distributable reserve comprising the shareholder's contributions.
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
14 Reserves (continued)
|
2024 |
2023 |
|
|
At beginning of year |
9,960,211 |
4,802,648 |
|
Share based payment charge |
11,804,820 |
5,157,563 |
|
|
|
Other reserves comprise the Company's contributions to the share based payment scheme. An expense equivalent to the fair value of the share options granted is recognised evenly over the vesting period with a corresponding amount being recognised in other reserves. As the cost is borne by the parent entity and amounts are not recharged to the Company, this balance in other reserves is a capital contribution.
|
Deferred taxation |
|
2024 |
2023 |
|
|
At beginning of year |
1,779,451 |
(18,913) |
|
Charged to profit or loss |
(8,538) |
1,798,364 |
|
At end of year |
|
|
The provision for deferred taxation is made up as follows:
|
2024 |
2023 |
|
|
Fixed asset timing differences |
(1,163,700) |
(744,204) |
|
Short term timing differences - trading |
2,934,613 |
2,523,655 |
|
|
|
|
Pension commitments |
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. The Company operates a stakeholder defined contribution pension scheme for the benefit of the employees. The assets of the scheme are administered by an independent pensions provider.
The charge to profit and loss in respect of defined contribution schemes was £1,741,599 (2023: £1,263,572). As at the balance sheet date, the amount payable in respect of defined contribution schemes was £179,777 (2023: £134,409).
EQT PARTNERS LIMITED
Notes to the Financial Statements
for the year ended 31 December 2024
|
Commitments under operating leases |
At 31 December 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 |
3,889,400 |
3,241,167 |
|
Later than 1 year and not later than 5 years |
15,557,600 |
15,557,600 |
|
Later than 5 years |
7,454,683 |
11,344,083 |
|
26,901,683 |
30,142,850 |
|
Parent and ultimate parent undertaking |
The immediate parent company at the balance sheet date is considered to be EQT Partners AB, a company incorporated in Sweden by virtue of their shareholding in the Company.
The ultimate parent company is considered to be EQT AB, a company incorporated in Sweden, by virtue of their shareholding in EQT Partners AB.
|
Subsequent events |
After the balance sheet date, the Board of Directors announced a 100% distribution of profits of £43,296,268 equivalent to £865.91 per Ordinary share. The disclosures relevant to this have been included in the Directors' Report but the financial statements have not been adjusted to reflect this as it was proposed after the balance sheet date.
Merger
Effective 1 January 2025, the directors of EQT Partners Limited agreed to buy the business and assets of EQT Exeter Advisors UK Limited for an initial consideration of £5 million based on estimates of EQT Exeter Advisors UK Limted’s total net book value less retained regulatory capital. This will be settled through a Promissory Note, which will be finalised in 2025 once the latter's books are closed.