Company registration number 04479650 (England and Wales)
SKYBOUND WEALTH MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SKYBOUND WEALTH MANAGEMENT LIMITED
COMPANY INFORMATION
Director
J Burton
Company number
04479650
Registered office
MBP3, Meadowhall Business Park
Carbrook Hall Road
Sheffield
S9 2EQ
Auditor
Xeinadin Audit Limited
100 Barbirolli Square
Manchester
Greater Manchester
United Kingdom
M2 3BD
SKYBOUND WEALTH MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 6
Director's responsibilities statement
7
Independent auditor's report
8 - 11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 26
SKYBOUND WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The director presents the strategic report for the year ended 31 December 2024.
Review of the business
These financial statements are a consolidation of the UK entity results along with the results of the foreign branch operating in the United Arab Emirates.
The business activity in the UK, is regulated by the Financial Conduct Authority (FCA) and the business activities in the UAE are regulated by the SCA.
The Directors reports an overall increase of revenue in the year from £6.3m to £7.2m, this represents an increase of 14%.
A summarised split of results for the year between the two areas is shown below:
| | | |
| | | |
| | | |
| | | |
Profit/ (loss) before tax | | | |
| | | |
| | | |
The company has continued to focus on increasing its fee-paying Assets under Advice (AUA) since 2020.
The strategy included the improvement of the investment portfolios, increased business development initiatives and offering clients' best in class service.
Due to the AUA increase and new clients being introduced, the revenue has increased.
SKYBOUND WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
In consideration of the business and regulatory risks inherent to the Company and its industry, the Director has identified, in their judgment, the following key risks with the detail as to how the Company implements risk mitigation procedures to reduce the risk to an acceptable level:
Key Person Risks - The Company is long established with defined processes and controls. Together with a cross-over of key functions and the ability to delegate to experienced support while maintaining the appropriate level of duty segregation adequately mitigates the associated risk. Further, as part of a larger Group there is sufficient expertise available to fulfil all functions.
Regulatory Compliance - The Company has strong systems and implements rigorous controls to provide appropriate oversight of the Financial Planning process to adequately mitigate the associated risk. To further inform the compliance view, the Company is advised by three different independent regulatory consultancy firms.
Regulatory Changes - Due to the wealth of compliance experience within the Company, it is adept at process change to proactively respond to regulatory changes and appropriately mitigate the associated risk. Adhering strictly to legal and regulatory affairs, the Company liaises, listens and proactively reacts to updates provided by the independent regulatory consultants to align the Company with RCA requirements.
Market Performance - The Company ethos is one of low-risk capital management. The Company provides a wide diversity of fund choices which reduces client exposure if markets fall, thereby providing adequate mitigation of the associate risk. Adroit choice, meticulous risk analysis and investment funds of substance that maintain substantial liquidity are additional key drivers. The latter gives flexibility in times of downturn, providing easy access to fund withdrawals. Continuous portfolio reviews preserve stability. Unbroken personal interaction linked to constant communication with clients, facilitates the Company's ability to react to protect clients.
Protection of client personal information - Fulfilling legal and social responsibility to protect personal information is ingrained throughout the corporate activities of the Company. The Company complies with Data Protection rules applicable to the UK through specifically designed processes and implemented controls to adequately mitigate the associated risk. Included in our annual Anti Money Laundering Regulation review is a reaffirmation of the need to protect all client information and to be aware of identity theft.
SECTION 172(1) STATEMENT
The Directors consider they have effectively implemented their roles and responsibilities under section 172 of the Companies Act 2006 with the following processes continuing to be employed:
-Establishing a long-term strategy for the business which will continue to deliver successful results for the business, its employee's and wider stakeholders.
-Fostering relationships throughout the business, acting fairly between members of the company and treating all stakeholders with respect.
-Considering the impact, we have on the environment and the communities in which we work both on
individual projects and the business as a whole.
SKYBOUND WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
STRATEGIC PLANS
The Company remains focused on delivering sustainable growth in net profit after tax—our key performance indicator for shareholders. To achieve this, the following strategic initiatives have been identified:
Enhancing Client Value: Introduce value-added services to the existing client base to maximise returns from assets under advisory and deepen client relationships.
Driving Organic Growth: Identify and implement growth initiatives within our current geographical footprint to increase assets under advisory through targeted marketing, referrals, and expanded advisor productivity.
Pursuing Strategic Acquisitions: Evaluate and pursue acquisition opportunities that will enhance or extend the Company’s geographic presence and add scale to the assets under advisory.
Maintaining Cost Discipline: Sustain a stable overhead base while leveraging operational efficiencies to improve margins.
Enhancing the Digital Experience: Continue to invest in technology to enrich the client journey and equip advisors with advanced tools that enable best-in-class financial advice and service delivery.
Expanding the Service Offering: Broaden the range of services available to existing clients, with the objective of managing a larger share of their total wealth and strengthening long-term relationships.
Operational Scalability: Improve systems, infrastructure, and internal processes through technology and automation to support scalable revenue growth with controlled cost increases.
Advisor Recruitment: Intensify recruitment efforts to attract experienced financial advisors and their client bases, both organically and through branch expansion, to support the Company’s long-term growth strategy.
.............................................
J Burton
Director
13 May 2025
SKYBOUND WEALTH MANAGEMENT LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The director presents his annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of financial management.
Branch
Skybound Wealth Management Limited operates internationally through a branch in Abu Dhabi.
Results and dividends
No dividends will be distributed for the year ended 31 December 2024, (2023: Nil).
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
J Burton
Mr I M Sweet
(Resigned 30 April 2024)
SKYBOUND WEALTH MANAGEMENT LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Stakeholder engagement
Client Engagement
Skybound Wealth Management continues to lead with a client-first approach and a commitment to innovation. Our priority remains delivering exceptional service tailored to the complex needs of globally mobile clients. Through deep client engagement and a robust understanding of their financial goals, we aim to be the most trusted name in international financial planning.
In 2024, we strengthened our position as a leader in cross-border financial advice, leveraging our strong brand reputation and our client-centric philosophy. As demand for high-quality international financial advice grows, our differentiated offering—backed by market-leading technology and a digitally enabled advisor experience—places us in an ideal position to support clients in managing wealth across jurisdictions.
We constantly monitor client feedback, market dynamics, and regulatory developments to ensure that the services we deliver remain relevant, compliant, and aligned with the evolving expectations of our clients.
Employees
Our people remain central to our success. In 2024, we invested further in employee development, leadership training, and succession planning, while continuing to attract and retain top talent across our global offices.
We foster a working environment built on empowerment, inclusivity, and opportunity. Employees are encouraged to take ownership of their growth and to participate in shaping the future of the business. The company is committed to high standards of integrity and ethical behaviour and upholds fair employment practices globally.
Suppliers and Partners
Skybound has continued to develop strong and transparent relationships with our suppliers and business partners. We operate with professionalism and integrity, adhering to the highest standards of business conduct in every jurisdiction in which we operate.
We expect all of our partners to uphold these same values, fostering collaborative, mutually beneficial relationships that support the delivery of outstanding client outcomes.
Future Developments
Looking forward, Skybound has ambitious plans for the next three years, focused on scaling our global advisory footprint and deepening our service proposition in key international markets. We will continue to invest in digital innovation to enhance both client and advisor experience, and we are actively exploring expansion opportunities that align with our long-term growth strategy.
A key financial objective for 2025 is to strengthen the Group’s balance sheet. This will include the planned conversion of shareholder loans into permanent capital, which will reinforce our financial foundation and provide greater flexibility to support continued investment in the business. This reflects the long-term confidence and support of our shareholders and aligns with our objective to build a resilient, scalable, and capital-strong business.
Auditor
Xeinadin Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
SKYBOUND WEALTH MANAGEMENT LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
On behalf of the board
..............................................
J Burton
Director
13 May 2025
SKYBOUND WEALTH MANAGEMENT LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
SKYBOUND WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKYBOUND WEALTH MANAGEMENT LIMITED
- 8 -
Opinion
We have audited the financial statements of Skybound Wealth Management Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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 United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
SKYBOUND WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKYBOUND WEALTH MANAGEMENT LIMITED (CONTINUED)
- 9 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
SKYBOUND WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKYBOUND WEALTH MANAGEMENT LIMITED (CONTINUED)
- 10 -
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:
The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets;
Results of the enquiries of management about their own identification and assessment of the risks of irregularities;
Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue and management override. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included: FRS102 - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the Companies Act 2006 relevant tax compliance regulations in the UK, employment law, pensions legislation and the rules and principles set by the Financial Conduct Authority ('FCA').
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Enquiring of management concerning actual and potential litigation and claims;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
SKYBOUND WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKYBOUND WEALTH MANAGEMENT LIMITED (CONTINUED)
- 11 -
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
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.
Michael Butt (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited, Statutory Auditor
100 Barbirolli Square
Manchester
Greater Manchester
M2 3BD
United Kingdom
13 May 2025
SKYBOUND WEALTH MANAGEMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
7,179,237
6,259,252
Cost of sales
(5,230,100)
(5,177,037)
Gross profit
1,949,137
1,082,215
Administrative expenses
(1,927,225)
(1,045,427)
Other operating income
11,826
426
Operating profit
4
33,738
37,214
Interest receivable and similar income
7
5,139
Interest payable and similar expenses
8
(2,524)
(1,895)
Profit before taxation
36,353
35,319
Tax on profit
9
(10,012)
(8,653)
Profit for the financial year
26,341
26,666
Other comprehensive income
Currency translation (loss)/gain arising in the year
(1,211)
74
Total comprehensive income for the year
25,130
26,740
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SKYBOUND WEALTH MANAGEMENT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,359
2,642
Current assets
Debtors
11
1,141,892
1,482,821
Cash at bank and in hand
178,599
112,990
1,320,491
1,595,811
Creditors: amounts falling due within one year
12
(649,784)
(1,035,765)
Net current assets
670,707
560,046
Total assets less current liabilities
674,066
562,688
Creditors: amounts falling due after more than one year
13
(477,513)
(471,240)
Provisions for liabilities
Provisions
14
131,516
101,541
(131,516)
(101,541)
Net assets/(liabilities)
65,037
(10,093)
Capital and reserves
Called up share capital
16
50,100
100
Other reserves
(17,726)
(16,515)
Profit and loss reserves
32,663
6,322
Total equity
65,037
(10,093)
The financial statements were approved by the board of directors and authorised for issue on 13 May 2025 and are signed on its behalf by:
..............................................
J Burton
Director
Company registration number 04479650 (England and Wales)
SKYBOUND WEALTH MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Called up Share capital
Other Reserves
Profit and loss reserves
Total Equity
Notes
£
£
£
£
Balance at 1 January 2023
100
(16,589)
(20,344)
(36,833)
Year ended 31 December 2023:
Profit
-
-
26,666
26,666
Other comprehensive income:
Currency translation differences
-
74
74
Total comprehensive income
-
74
26,666
26,740
Balance at 31 December 2023
100
(16,515)
6,322
(10,093)
Year ended 31 December 2024:
Profit
-
-
26,341
26,341
Other comprehensive income:
Currency translation differences
-
(1,211)
(1,211)
Total comprehensive income
-
(1,211)
26,341
25,130
Issue of share capital
16
50,000
-
-
50,000
Balance at 31 December 2024
50,100
(17,726)
32,663
65,037
SKYBOUND WEALTH MANAGEMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
35,487
134,968
Interest paid
(2,524)
(1,895)
Income taxes (paid)/refunded
(19,131)
530
Net cash inflow from operating activities
13,832
133,603
Cash flow from Investing activities
Purchase of tangible fixed assets
(2,151)
(924)
Interest received
5,139
Net cash generated from/(used in) investing activities
2,988
(924)
Cash flow from Financing activities
Proceeds from issue of shares
50,000
Other financing
(1,211)
111
Net cash generated from financing activities
48,789
111
Net increase in cash and cash equivalents
65,609
132,790
Cash and cash equivalents at beginning of year
112,990
(19,800)
Cash and cash equivalents at end of year
178,599
112,990
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
1
Accounting policies
Company information
Skybound Wealth Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is MBP3, Meadowhall Business Park, Carbrook Hall Road, Sheffield, S9 2EQ.
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 director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the current economic climate, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of the current economic climate, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available including support of the group, the Directors have concluded that the Company is able to continue as a going concern for a period of 12 months from the date of approval of these financial statements. Accordingly, the Company continues to adopt the going concern basis in preparing the financial statements.
1.3
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover, represents initial and recurring fees in relation to the valuation of assets under management. Initial fees are recognised on an accruals basis and recurring fees are recognised initially and adjusted for any valuation movements through the period.
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:
Leasehold improvements
10% on cost
Fixtures and fittings
25% on cost
Computers
33% on cost
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.13
Leases
As lessee
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.
2
Judgements and key sources of estimation uncertainty
In the process of applying its accounting policies, the Company is required to make certain estimates, judgement, and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amount of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented. On an ongoing basis, the Company evaluates its estimates using historical experience and other reasonable methods.
Actual results may differ materially from the estimate, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The following paragraphs detail the estimates and judgements the Company believes to have the most significant impact on the annual results under FRS 102.
Turnover recognition and allowance for doubtful receivables
The Company recognises turnover generally at the time of delivery and when collection of the resulting receivable is reasonable assured. When the Company considers that the criteria for turnover recognition are not met for a transaction, turnover recognition is delayed until such time as collectability is reasonably assured. Payments received in advance of turnover recognition are recorded as deferred income. At each reporting date, the Company evaluates the recoverability of trade receivables and record allowances for doubtful receivables based on experience. These allowances are based on, amongst other things, a consideration of actual collection history. The actual level of receivable collected may differ from the estimated levels of recovery, which could impact operating results positively or negatively.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Initial and recurring fees
6,967,371
6,210,995
Group Service Income
211,866
48,257
7,179,237
6,259,252
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
827,444
680,815
United Arab Emirates
6,351,793
5,578,437
7,179,237
6,259,252
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 21 -
2024
2023
£
£
Other revenue
Interest income
5,139
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
27,090
(30,074)
Fees payable to the company's auditor for the audit of the company's financial statements
25,837
27,373
Depreciation of owned tangible fixed assets
1,434
1,238
Operating lease charges
33,829
24,775
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
1
1
Employees
11
8
Total
12
9
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
528,526
442,100
Social security costs
97,967
15,057
Pension costs
5,129
3,497
631,622
460,654
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
197,282
105,188
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
5,139
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,524
1,365
Other finance costs:
Other interest
530
2,524
1,895
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
10,012
8,653
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
36,353
35,319
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
9,088
8,307
Tax effect of expenses that are not deductible in determining taxable profit
405
272
Permanent capital allowances in excess of depreciation
(179)
74
Under/(over) provided in prior years
698
Taxation charge for the year
10,012
8,653
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
10
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024
782
12,585
1,495
14,862
Additions
1,280
871
2,151
Disposals
(8,110)
(1,227)
(9,337)
At 31 December 2024
782
5,755
1,139
7,676
Depreciation and impairment
At 1 January 2024
234
10,577
1,409
12,220
Depreciation charged in the year
76
1,135
223
1,434
Eliminated in respect of disposals
(8,110)
(1,227)
(9,337)
At 31 December 2024
310
3,602
405
4,317
Carrying amount
At 31 December 2024
472
2,153
734
3,359
At 31 December 2023
548
2,008
86
2,642
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
122,482
43,645
Corporation tax recoverable
2,035
Amounts owed by group undertakings
534,756
701,569
Other debtors
13,641
23,615
Prepayments and accrued income
471,013
711,957
1,141,892
1,482,821
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
13,945
54,522
Corporation tax
9,314
20,468
Other taxation and social security
7,112
6,916
Other creditors
65,722
117,481
Accruals and deferred income
553,691
836,378
649,784
1,035,765
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
13
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
477,513
471,240
14
Provisions for liabilities
2024
2023
£
£
Other provisions
131,516
101,541
Movements on provisions:
£
At 1 January 2024
101,541
Additional provisions in the year
29,975
At 31 December 2024
131,516
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,129
3,497
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.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
50,100 of £1 each
50,100
100
50,100
100
On 19 April 2024 50,000 shares of £1 each were issued at par.
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
17
Operating lease commitments
As 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 1 year
8,323
12,348
Years 2-5
8,232
8,323
20,580
18
Events after the reporting date
There were no reportable post balance sheet events
19
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Branch
During the year service charges to entities under common control totalled £215,009 (2023:£56,364).
During the year service charges from entities under common control totalled £6,024,586 (2023: £5,217,443).
During the year, end of service benefits totalling £24,825 (2023: £55,864) were transferred from entities under common control.
At the year-end amounts due to entities under common control totalled £252 (2023: £Nil).
At the year-end amounts due from entities under common control totalled £200,043 (2023:£328,162).
UK
During the year service charges from entities under common control totalled £45,000 (2023:£132,719).
During the year service charges to entities under common control totalled £40,328 (2023:£16,782).
At the year-end amounts due to entities under common control totalled £Nil (2023: £471,240).
At the year-end amounts owed from entities under common control totalled £331,674 (2023:£365,288).
SKYBOUND WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
20
Ultimate controlling party
At the year end the immediate parent undertaking is Skybound Partners Limited . Skybound Partners Limited prepares consolidated financial statements which are available from 3rd floor, 33 Burton street, W1J 6OU. The ultimate parent undertaking and controlling party is Skybound Capital Limited , a company registered in the British Virgin Islands. The controlling party is C A Amm.
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
26,341
26,666
Adjustments for:
Taxation charged
10,012
8,653
Finance costs
2,524
1,895
Investment income
(5,139)
Depreciation and impairment of tangible fixed assets
1,434
1,238
Increase in provisions
29,975
91,718
Movements in working capital:
Decrease in debtors
338,894
2,731,849
Decrease in creditors
(368,554)
(2,727,051)
Cash generated from operations
35,487
134,968
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
112,990
65,609
178,599
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100J BurtonMr I M Sweet044796502024-01-012024-12-3104479650bus:Director12024-01-012024-12-3104479650bus:Director22024-01-012024-12-3104479650bus:RegisteredOffice2024-01-012024-12-31044796502024-12-31044796502023-01-012023-12-3104479650core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3104479650core:RetainedEarningsAccumulatedLosses2024-01-012024-12-3104479650core:ForeignCurrencyTranslationReserve2024-01-012024-12-3104479650core:ForeignCurrencyTranslationReserve2023-01-012023-12-31044796502023-12-3104479650core:LeaseholdImprovements2024-12-3104479650core:FurnitureFittings2024-12-3104479650core:ComputerEquipment2024-12-3104479650core:LeaseholdImprovements2023-12-3104479650core:FurnitureFittings2023-12-3104479650core:ComputerEquipment2023-12-3104479650core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3104479650core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3104479650core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3104479650core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3104479650core:CurrentFinancialInstruments2024-12-3104479650core:CurrentFinancialInstruments2023-12-3104479650core:ShareCapital2024-12-3104479650core:ShareCapital2023-12-3104479650core:OtherMiscellaneousReserve2024-12-3104479650core:OtherMiscellaneousReserve2023-12-3104479650core:RetainedEarningsAccumulatedLosses2024-12-3104479650core:RetainedEarningsAccumulatedLosses2023-12-3104479650core:ShareCapital2022-12-3104479650core:ForeignCurrencyTranslationReserve2022-12-3104479650core:RetainedEarningsAccumulatedLosses2022-12-3104479650core:ForeignCurrencyTranslationReserve2023-12-3104479650core:ForeignCurrencyTranslationReserve2024-12-3104479650core:ShareCapitalOrdinaryShareClass12024-12-3104479650core:ShareCapitalOrdinaryShareClass12023-12-3104479650core:ShareCapital2024-01-012024-12-310447965012024-01-012024-12-310447965012023-01-012023-12-31044796502023-12-31044796502022-12-3104479650core:LeaseholdImprovements2024-01-012024-12-3104479650core:FurnitureFittings2024-01-012024-12-3104479650core:ComputerEquipment2024-01-012024-12-3104479650core:UKTax2024-01-012024-12-3104479650core:UKTax2023-01-012023-12-3104479650core:LeaseholdImprovements2023-12-3104479650core:FurnitureFittings2023-12-3104479650core:ComputerEquipment2023-12-3104479650core:Non-currentFinancialInstruments12024-12-3104479650core:Non-currentFinancialInstruments12023-12-3104479650bus:OrdinaryShareClass12024-01-012024-12-3104479650bus:OrdinaryShareClass12024-12-3104479650bus:OrdinaryShareClass12023-12-3104479650core:WithinOneYear2024-12-3104479650core:WithinOneYear2023-12-3104479650core:BetweenTwoFiveYears2024-12-3104479650core:BetweenTwoFiveYears2023-12-3104479650bus:PrivateLimitedCompanyLtd2024-01-012024-12-3104479650bus:FRS1022024-01-012024-12-3104479650bus:Audited2024-01-012024-12-3104479650bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP