Company Registration No. 08100415 (England and Wales)
Darwin Alternative Investment Management Limited
Annual report and financial statements
for the year ended 30 September 2024
Darwin Alternative Investment Management Limited
Company information
Directors
Anthony Geoffrey David Esse
Christopher James Affleck Penney
Company number
08100415
Registered office
Empire House
175 Piccadilly
London
W1J 9EN
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Darwin Alternative Investment Management Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
Darwin Alternative Investment Management Limited
Strategic report
For the year ended 30 September 2024
1

The directors present the strategic report for the year ended 30 September 2024.

Fair review of the business

The company's principal activity is that of providing investment advisory services. In the year under review, it has provided investment advisory services to the Darwin Leisure Property Fund, the Darwin Leisure Development Fund, and the Darwin Bereavement Services Fund, each of which is a class 'B' unit trust domiciled in Guernsey and regulated by the Guernsey Financial Services Commission.

 

The company is authorised and regulated by the Financial Conduct Authority.

 

The directors have not recommended the payment of a dividend during the year (2023: £nil).

Principal risks and uncertainties

Financial risk management objectives and policies

The company uses various financial instruments which include cash and amounts due to and from related parties that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks that could result in either reduction in the company's net assets or a reduction of the profits available for dividends.

 

These risks include liquidity risks and credit risks. The directors' approach to the management of these risks is set out below. The objectives, policies and processes for managing the risks are summarised below and remain unchanged from previous years.

 

Liquidity risk

This is the risk that the company will encounter difficulty in meeting financial liabilities. The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 

The company's policy throughout the year has been to achieve this objective through management's day to day involvement in business decisions rather than through setting maximum or minimum liquidity ratios.

 

Credit risk

The company's principal assets are cash and trade debtors. The company's operations expose it to a variety of risks, including fee collection from the Darwin Leisure Development Fund and the Darwin Bereavement Services Fund.

 

The company has appropriate procedures in place that seek to limit the adverse effects of this risk. The risks relating to cash is managed by holding cash only at major UK banks with high quality external credit ratings or government support.

 

Darwin Alternative Investment Management Limited
Strategic report (continued)
For the year ended 30 September 2024
2
Going Concern and Future Developments

It is the directors’ intention to continue the operation of the business in the short to medium term as in the year under review, and the directors believe that they will have sufficient available resources to continue to operate for the foreseeable future and to meet all potential obligations as they fall due.

 

Due to the inherent nature of the company’s business, its long-term future is reliant upon the continued operation of the Darwin Leisure Property Fund, the Darwin Leisure Development Fund, and the Darwin Bereavement Services Fund. The net assets of these funds at 30 September 2024 were, respectively, £296.1m (2023: £585.2m); £157.7m (2023: £210.8m); and £231.3m (2023: £229.5m).

 

After making enquiries, and after considering and taking into account the matters described above, the directors of Darwin Alternative Investment Management Limited have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the financial statements.

Key performance indicators

In the year under review, revenue decreased to £4,813,544 (2023: £5,029,245). The decrease in revenue was matched by a decrease in costs, giving rise to a profit. This result is more in line with the results from the financial year 2022 and years prior, albeit not as profitable due to higher costs in the current year overall.

 

On behalf of the board

Christopher James Affleck Penney
Director
20 December 2024
Darwin Alternative Investment Management Limited
Directors' report
For the year ended 30 September 2024
3

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

Principal activities

The company's principal activity is that of providing investment advisory services. In the year under review, it has provided investment advisory services to Darwin Property Investment Management (Guernsey) Limited, the manager of the Darwin Leisure Property Fund, and to Darwin Alternative Investment Management (Guernsey) Limited the manager of the Darwin Leisure Development Fund, and the Darwin Bereavement Services Fund.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Anthony Geoffrey David Esse
Christopher James Affleck Penney
Auditor

Saffery LLP have expressed their willingness to continue in office.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Christopher James Affleck Penney
Director
20 December 2024
Darwin Alternative Investment Management Limited
Directors' responsibilities statement
For the year ended 30 September 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.

Darwin Alternative Investment Management Limited
Independent auditor's report
To the members of Darwin Alternative Investment Management Limited
5
Opinion

We have audited the financial statements of Darwin Alternative Investment Management Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of 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.

Darwin Alternative Investment Management Limited
Independent auditor's report (continued)
To the members of Darwin Alternative Investment Management Limited
6

Opinions on other matters prescribed by the Companies Act 2006

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

 

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.

Darwin Alternative Investment Management Limited
Independent auditor's report (continued)
To the members of Darwin Alternative Investment Management Limited
7

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006, UK Tax legislation and The Financial Services and Markets Act 2000, on which The Financial Conduct Authority (FCA) Handbook is based..

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

 

The company is regulated by the FCA. We discussed the company’s authorisation and permitted activities with the SMF16 and obtained evidence of this from the FCA register. We obtained additional evidence about compliance by discussing any breaches with the SMF16 and SMF17 and reviewing correspondence with the FCA.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

Darwin Alternative Investment Management Limited
Independent auditor's report (continued)
To the members of Darwin Alternative Investment Management Limited
8
Lucy Brennan
Senior Statutory Auditor
For and on behalf of Saffery LLP
20 December 2024
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Darwin Alternative Investment Management Limited
Statement of comprehensive income
For the year ended 30 September 2024
9
2024
2023
Notes
£
£
Turnover
3
4,813,544
5,029,245
Administrative expenses
(4,710,707)
(5,295,282)
Profit/(loss) before taxation
102,837
(266,037)
Tax on profit/(loss)
8
(34,325)
23,683
Profit/(loss) for the financial year
68,512
(242,354)

The income statement has been prepared on the basis that all operations are continuing operations.

Darwin Alternative Investment Management Limited
Statement of financial position
As at 30 September 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
30,866
38,128
Current assets
Debtors
10
807,821
821,976
Cash at bank and in hand
188,013
25,712
995,834
847,688
Creditors: amounts falling due within one year
11
(540,071)
(466,057)
Net current assets
455,763
381,631
Total assets less current liabilities
486,629
419,759
Provisions for liabilities
Deferred tax liability
12
2,624
4,266
(2,624)
(4,266)
Net assets
484,005
415,493
Capital and reserves
Called up share capital
14
47,500
47,500
Profit and loss reserves
436,505
367,993
Total equity
484,005
415,493
The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
Christopher James  Affleck Penney
Director
Company Registration No. 08100415
Darwin Alternative Investment Management Limited
Statement of changes in equity
For the year ended 30 September 2024
11
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
47,500
610,347
657,847
Year ended 30 September 2023:
Loss and total comprehensive income
-
(242,354)
(242,354)
Balance at 30 September 2023
47,500
367,993
415,493
Year ended 30 September 2024:
Profit and total comprehensive income
-
68,512
68,512
Balance at 30 September 2024
47,500
436,505
484,005
Darwin Alternative Investment Management Limited
Statement of cash flows
For the year ended 30 September 2024
12
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
18
162,301
(772,713)
Income taxes paid
-
0
(58,499)
Net cash inflow/(outflow) from operating activities
162,301
(831,212)
Net increase/(decrease) in cash and cash equivalents
162,301
(831,212)
Cash and cash equivalents at beginning of year
25,712
856,924
Cash and cash equivalents at end of year
188,013
25,712
Darwin Alternative Investment Management Limited
Notes to the financial statements
For the year ended 30 September 2024
13
1
Accounting policies
Company information

Darwin Alternative Investment Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is Empire House, 175 Piccadilly, London, W1J 9EN.

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.

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

The company receives investment advisory fees in respect of the funds for which it is the Investment Adviser. These fees are recognised in the company's accounts in the month in which the liability to pay these fees arises on the part of the fund, which matches when the services is supplied and therefore the company's right to the income is met.

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:

Fixtures and fittings
Straight over remaining length of office lease

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.

1.5
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.

Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
14

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.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
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 statement of financial position 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, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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.

Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
15
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
16
Derecognition of financial liabilities

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

1.8
Equity instruments

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

1.9
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

 

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

1.11
Retirement benefits

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

Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
17
1.12
Leases

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.

1.13
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
Critical accounting 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Amortisation and Depreciation

The company charges amortisation and depreciation based on the expected useful life of the asset. Determining the useful life of the asset requires management to make an estimate.

Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
18
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Investment advisory fees
4,636,000
4,971,500
Expenses recharged
177,544
57,745
4,813,544
5,029,245
2024
2023
£
£
Turnover analysed by geographical market
Guernsey
4,813,544
5,029,245
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
7,262
7,262
Operating lease charges
102,212
106,659
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
20,000
19,000
For other services
Taxation compliance services
2,650
1,800
6
Employees

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

2024
2023
Number
Number
13
12
Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
6
Employees (continued)
19

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,786,899
1,697,795
Social security costs
18,738
4,611
Pension costs
294,380
299,333
2,100,017
2,001,739
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
463,050
441,000
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
441,000
420,000
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
9,337
-
0
Deferred tax
Origination and reversal of timing differences
24,988
(23,683)
Total tax charge/(credit)
34,325
(23,683)
Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
-- (continued)
20

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

2024
2023
£
£
Profit/(loss) before taxation
102,837
(266,037)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2023: 22.01%)
19,539
(58,555)
Tax effect of expenses that are not deductible in determining taxable profit
8,340
31,760
Effect of change in corporation tax rate
5,684
(2,993)
Other non-reversing timing differences
762
2,216
Other permanent differences
-
0
3,889
Taxation charge/(credit) for the year
34,325
(23,683)
9
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 October 2023 and 30 September 2024
46,600
Depreciation and impairment
At 1 October 2023
8,472
Depreciation charged in the year
7,262
At 30 September 2024
15,734
Carrying amount
At 30 September 2024
30,866
At 30 September 2023
38,128
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
594,659
577,589
Other debtors
107,775
111,287
Prepayments and accrued income
104,068
105,151
806,502
794,027
Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
10
Debtors (continued)
21
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 12)
1,319
27,949
Total debtors
807,821
821,976
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
331,588
268,082
Corporation tax
9,337
-
0
Other taxation and social security
67,939
64,538
Other creditors
1,304
568
Accruals and deferred income
129,903
132,869
540,071
466,057
12
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Fixed asset timing differences
2,624
4,266
-
-
Short term timing differences
-
-
1,319
5,375
Losses and other deductions
-
-
-
22,574
2,624
4,266
1,319
27,949
2024
Movements in the year:
£
Asset at 1 October 2023
(23,683)
Charge to profit or loss
24,988
Liability at 30 September 2024
1,305
Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
22
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
294,380
299,333

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

14
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
47,500 Ordinary shares of £1 each
47,500
47,500
47,500
47,500
15
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
102,225
102,225
Between two and five years
332,231
408,900
In over five years
-
0
25,556
434,456
536,681
Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
23
16
Related party transactions
Transactions with related parties

During the year, the company supplied services to the value of £2,261,000 (2023: £2,296,500) to Darwin Alternative Investment Management (Guernsey) Limited, of which A. Esse and J. Penney are directors. In addition to these services, the company also recharged costs to the value of £7,348 (2023: £nil). At the year end, £325,000 (2023: £402,500) of this amount remained outstanding.

 

During the year, the company supplied services to the value of £2,375,000 (2023: £2,675,000) to Darwin Property Investment Management (Guernsey) Limited, of which A. Esse and J. Penney are directors. In addition to these services, the company also recharged costs to the value of £3,674 (2023: £nil). At the year end, £250,000 (2023: £70,000) of this amount remained outstanding.

 

During the year, the company recharged costs to the value of £3,750 (2023: £nil) to Darwin Bereavement Properties (Guernsey) Limited, of which A. Esse and J. Penney are directors. There was no balance outstanding from this entity at year end (2023: £nil).

 

During the year, the company recharged costs to the value of £21,286 (2023: £983) to Darwin Leisure Development Properties (Guernsey) Limited, of which A. Esse and J. Penney are directors. There was no balance outstanding from this entity at year end (2023: £nil).

 

During the year, the company recharged costs to the value of £21,800 (2023: £37,820) to Greenacres Portfolio Management Limited, of which A. Esse and J. Penney are directors. At the year end, £9,660 (2023: £4,500) remained outstanding.

 

During the year, the company recharged costs to the value of £nil (2023: £1,893) to The Independent Funeral Partnership 2020 Limited, of which A. Esse and J. Penney are directors. There was no balance outstanding from this entity at year end (2023: £nil).

 

During the year, the company recharged costs to the value of £19,000 (2023: £nil) to Low Cost Funeral Limited, of which A. Esse and J. Penney are directors. There was no balance outstanding from this entity at year end (2023: £nil).

 

During the year, the company recharged costs to the value of £19,700 (2023: £nil) to Memoria Limited, of which A. Esse and J. Penney are directors. There was no balance outstanding from this entity at year end (2023: £nil).

 

During the year, the company purchased services to the value of £388,864 (2023: £592,745) from Picton Asset Management Limited, of which A. Esse is a director. At the year end, £32,495 (2023: £121,500) of this amount remained outstanding.

 

During the year, the company recharged costs to the value of £965 (2023: £nil) with Darwin (North West) Limited, of which J. Penney is a director. There was no balance outstanding from this entity at year end (2023: £nil).

 

During the year, the company paid remuneration and benefits of £100,637 (2023: £107,750) to a close family member of key management personnel.

17
Ultimate controlling party

In the opinion of the directors, the company was not under the control of any one person or entity during the year.

Darwin Alternative Investment Management Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
24
18
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit/(loss) for the year after tax
68,512
(242,354)
Adjustments for:
Taxation charged/(credited)
34,325
(23,683)
Depreciation and impairment of tangible fixed assets
7,262
7,262
Movements in working capital:
Increase in debtors
(12,475)
(118,772)
Increase/(decrease) in creditors
64,677
(395,166)
Cash generated from/(absorbed by) operations
162,301
(772,713)
19
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
25,712
162,301
188,013
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