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Registered number: 01107136
















KEITH MONTGOMERY ASSOCIATES LIMITED



ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024


































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KEITH MONTGOMERY ASSOCIATES LIMITED

 
COMPANY INFORMATION


DIRECTORS
RK Montgomery 
JK Montgomery 
DK Papworth (resigned 31 August 2024)




REGISTERED NUMBER
01107136



REGISTERED OFFICE
Tallut House
Yatton Keynell

Chippenham

Wiltshire

SN14 7EL




INDEPENDENT AUDITORS
Bishop Fleming Bath Limited
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL






KEITH MONTGOMERY ASSOCIATES LIMITED


CONTENTS



Page
Strategic report
 
1
Directors' report
 
2
Directors' responsibilities statement
 
3
Independent auditors' report
 
4 - 7
Statement of income and retained earnings
 
8
Statement of financial position
 
9
Statement of cash flows
 
10
Analysis of net debt
 
11
Notes to the financial statements
 
12 - 23


KEITH MONTGOMERY ASSOCIATES LIMITED

 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

BUSINESS REVIEW
 
The principal activity of the company during the year was wealth management, comprising investment management and financial planning. 
The company has performed satisfactorily: profit before tax is £73,762 after deducting the effects or realised and unrealised investment valuation movements of £33,692.
The company has increased its efforts to innovate and explore new avenues to diversify its services and participate in the growing trend of wealth technology and artificial intelligence. Client retention rates and client satisfaction metrics continue to perform well, and strategic steps are being taken to engage with new clients and demographics.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The directors consider that the principal risks facing the company are;
Market risk - The company is affected by conditions in the financial markets and the wider economy, it manages this by closely monitoring market conditions and maintaining adequate liquid capital accordingly.
Regulatory and financial - The risk of breaches by the company of FCA rules. The company has a compliance function that provides training as well as monitoring compliance performance including for client money. Regulatory capital requirements are also closely monitored. The company retains capital balances in excess of current requirements.
Loss of staff - staff are a significant asset to the business. Retaining the services of key staff is essential to uninterrupted business activity.The company has a good track record of staff retention and has expanded the team in recent years.

FINANCIAL KEY PERFORMANCE INDICATORS
 
Key financial performance indicators show assets under management growing year on year and turnover is in line with expectations. 

OTHER KEY PERFORMANCE INDICATORS
 
Details regarding the use of financial instruments and their associated risks are set out in the notes to these financial statements.


This report was approved by the board on 22 January 2025 and signed on its behalf.



JK Montgomery
Director
Page 1


KEITH MONTGOMERY ASSOCIATES LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

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

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £89,066 (2023: loss £13,767).

Dividends of £130,000 (2023: £151,000) have been paid during the year.

DIRECTORS

The directors who served during the year were:

RK Montgomery 
JK Montgomery 
DK Papworth (resigned 31 August 2024)

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The Company fosters business relationships with its clients by acting on feedback, using dedicated customer relationship managers and by maintaining a high quality of service at all times. The Company fosters business relationships with its suppliers by supporting local suppliers, ensuring relationships are mutually beneficial and paying invoices within agreed payment terms.

MATTERS COVERED IN THE STRATEGIC REPORT

The company has included mandatory directors' report disclosures within the strategic report as they are considered by the directors to be of strategic importance; as permitted by the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The auditorsBishop Fleming Bath Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 


JK Montgomery
Director

Date: 22 January 2025

Tallut House
Yatton Keynell
Chippenham
Wiltshire
SN14 7EL
Page 2


KEITH MONTGOMERY ASSOCIATES LIMITED

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3


KEITH MONTGOMERY ASSOCIATES LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEITH MONTGOMERY ASSOCIATES LIMITED
OPINION


We have audited the financial statements of Keith Montgomery Associates Limited (the 'Company') for the year ended 30 September 2024, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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 30 September 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.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 4


KEITH MONTGOMERY ASSOCIATES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEITH MONTGOMERY ASSOCIATES LIMITED (CONTINUED)

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.


Page 5


KEITH MONTGOMERY ASSOCIATES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEITH MONTGOMERY ASSOCIATES LIMITED (CONTINUED)

AUDITORS' 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 Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

the nature of the industry and sector, control environment, and business performance including the design of remuneration policies;
results of enquiries with management, the directors, in relation to their own identification and assessment of the risks of irregularities within the entity;
management's incentives and opportunities for fraudulent manipulation of the Financial Statements (including the risk of override of controls); and
any matters we 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 non-compliance; 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 have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year end cut off. In common with all audits unders ISAs (UK) we are also required to perform specific procedures to respond to any risk of management override. 

We have 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 the UK Companies Act, FRS 102 and UK tax legislation. In addition, we considered provision 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 avoid a material penalty. We identified that the principal risk of non-compliance with laws and regulations related to breaches of UK regulatory principles, specifically those established by the Financial Conduct Authority. Other areas that we considered included data protection legislation and employment law.

Our procedures to respond to the risks identified included the following:

Enquiring of management in relation to actual and potential claims or litigation;
Performing analytical procedures to identify unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;
Assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
Reviewing board minutes and those of the audit and risk committee;
Reviewing the financial statement disclosures and testing to supporting documentation;
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustment
Evaluating the business rationale of significant transactions that are unusual or outside the normal course of
Page 6


KEITH MONTGOMERY ASSOCIATES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEITH MONTGOMERY ASSOCIATES LIMITED (CONTINUED)

business; and
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.

With regards to the risks of non-compliance with laws and regulations and breaches of UK regulatory principles, specifically those established by the Financial Conduct Authority, we considered the extent to which non-compliance might have a material effect on the Financial Statements. Our work included:

Gaining an understanding of current activities, the scope of authorisation and the effectiveness of control environment;
Reading any relevant correspondence with the Financial Conduct Authority;
Reviewing registers maintained regarding any complaints, errors and breaches; and
Discussions with management and the compliance team.

Our audit procedures are designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.






Chris Trantham FCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming Bath Limited
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

22 January 2025
Page 7


KEITH MONTGOMERY ASSOCIATES LIMITED

 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
837,594
790,681

Gross profit
  
837,594
790,681

Administrative expenses
  
(817,284)
(828,748)

Profit/(loss) from changes in fair value of investments
  
33,692
(62,879)

Operating profit/(loss)
 5 
54,002
(100,946)

Income from fixed assets investments
  
4,604
4,065

Profit/(loss) on disposal of investments
  
47,645
92,945

Interest receivable and similar income
 10 
1,494
1,392

Interest payable and similar expenses
  
(291)
(7)

Profit/(loss) before tax
  
107,454
(2,551)

Tax on profit/(loss)
 11 
(18,388)
(11,216)

Profit/(loss) after tax
  
89,066
(13,767)

  

  

Retained earnings at the beginning of the year
  
1,895,816
2,060,583

  
1,895,816
2,060,583

Profit/(loss) for the year
  
89,066
(13,767)

Dividends declared and paid
  
(130,000)
(151,000)

Retained earnings at the end of the year
  
1,854,882
1,895,816
The notes on pages 12 to 23 form part of these financial statements.
Page 8


KEITH MONTGOMERY ASSOCIATES LIMITED
REGISTERED NUMBER:01107136

STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
3,608
12,395

  
3,608
12,395

Current assets
  

Debtors
 14 
553,680
603,977

Current asset investments
 15 
1,436,579
1,229,829

Cash at bank and in hand
 16 
56,784
237,511

  
2,047,043
2,071,317

Creditors: amounts falling due within one year
 17 
(108,757)
(108,254)

Net current assets
  
 
 
1,938,286
 
 
1,963,063

Total assets less current liabilities
  
1,941,894
1,975,458

Provisions for liabilities
  

Deferred tax
 18 
(86,012)
(78,642)

  
 
 
(86,012)
 
 
(78,642)

Net assets
  
1,855,882
1,896,816


Capital and reserves
  

Called up share capital 
 19 
1,000
1,000

Profit and loss account
 20 
1,854,882
1,895,816

  
1,855,882
1,896,816


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





JK Montgomery
Director

Date: 22 January 2025

The notes on pages 12 to 23 form part of these financial statements.

Page 9


KEITH MONTGOMERY ASSOCIATES LIMITED


STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
89,066
(13,767)

Adjustments for:

Depreciation of tangible assets
8,787
9,745

Interest paid
291
7

Interest received
(6,098)
(5,457)

Taxation charge
18,388
11,216

Decrease in debtors
50,297
98,313

(Decrease) in creditors
(6,760)
(53,748)

Net fair value (gains)/losses recognised in P&L
(33,692)
62,879

Corporation tax (paid)/received
(3,755)
28,048

Net cash generated from operating activities

116,524
137,236


Cash flows from investing activities

Purchase of tangible fixed assets
-
(5,467)

Purchase of short-term listed investments
(476,364)
(29,726)

Sale of short-term listed investments
303,306
146,370

Interest received
1,494
1,392

Income from investments
4,604
4,065

Net cash from investing activities

(166,960)
116,634

Cash flows from financing activities

Dividends paid
(130,000)
(151,000)

Interest paid
(291)
(7)

Net cash used in financing activities
(130,291)
(151,007)

Net (decrease)/increase in cash and cash equivalents
(180,727)
102,863

Cash and cash equivalents at beginning of year
237,511
134,648

Cash and cash equivalents at the end of year
56,784
237,511


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
56,784
237,511

56,784
237,511


The notes on pages 12 to 23 form part of these financial statements.

Page 10


KEITH MONTGOMERY ASSOCIATES LIMITED


ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024





At 1 October 2023
Cash flows
Other non-cash changes
At 30 September 2024
£

£

£

£

Cash at bank and in hand

237,511

(180,727)

-

56,784

Debt due within 1 year

(1,209)

1,209

-

-

Liquid investments

1,229,829

173,121

33,629

1,436,579



1,466,131
(6,397)
33,629
1,493,363

The notes on pages 12 to 23 form part of these financial statements.
Page 11


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


GENERAL INFORMATION

Keith Montgomery Associates Ltd is a company limited by shares, incorporated in England and Wales. The registered office is Tallut House, Yatton Keynell, Chippenham, Wiltshire, SN14 7EL.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

GOING CONCERN

The directors consider that the Company has the ability to continue trading profitably and in a cash generative manner. The directors have also considered the impact of likely changes to trading conditions in 2025 and are satisfied that there is sufficient headroom for the Company to be resilient to any adverse changes in markets.
The directors therefore consider that it is appropriate to prepare the accounts on a going concern basis.

  
2.3

TURNOVER

Turnover comprises investment management revenue for initial and ongoing management fees which are recognised on an accruals basis.

 
2.4

OPERATING LEASES: THE COMPANY AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 12


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)

 
2.7

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


  
2.8

COUNTERPARTY BALANCES

Counterparty debtors and creditors include balances with clients, investment houses and other counterparties, and are measured at initial recognition at fair value. For counterparty debtors appropriate allowances for estimated irrecoverable amounts are recognised in profit and loss when there is objective evidence that the asset is impaired.

 
2.9

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
33% straight line
Office equipment
-
15 - 33% straight line
Computer equipment
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 13


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)

  
2.10

VALUATION OF INVESTMENTS

Listed current asset investments are revalued to fair value at each reporting date. Fair value is determined with reference to prevailing market values at the reporting date.

The valuation of non-listed investments cannot readily be determined, therefore these assets are held at cost less impairment. The directors test these assets for impairment at each reporting date. 

 
2.11

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

  
2.15

CLIENT MONEY

The company has permission to hold money and assets on behalf of clients in accordance with Clients' Money Rules and Safe Custody Asset (CASS 6 and CASS 7) rules of the Financial Conduct Authority. At the balance sheet date the company does not hold any such client money or assets but is currently maintaining its permissions.

 
2.16

FINANCIAL INSTRUMENTS

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

Basic financial assets

Page 14


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)


2.16
FINANCIAL INSTRUMENTS (CONTINUED)

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial instruments

Derecognition of financial assets

Page 15


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)


2.16
FINANCIAL INSTRUMENTS (CONTINUED)

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.17

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Directors make estimates and assumptions concerning the future. They are also required to exercise judgment in the process of applying the Company’s accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Fixed asset investments
Other fixed asset investments comprise assets for which there is no active market and their valuation cannot readily be determined by reference to external inputs. In the judgement of the directors, the cost of these investments represents the best estimate of fair value.


4.


TURNOVER

The whole of the turnover is attributable to investment management activities.

All turnover arose within the United Kingdom.


5.


OPERATING PROFIT/(LOSS)

The operating profit/(loss) is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
8,787
9,745

Cost of defined contribution pension scheme
6,848
17,148

Other operating lease rentals
14,418
9,612

Page 16


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

6.


AUDITORS' REMUNERATION

2024
2023
£
£

Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements
9,575
9,075


- other services pursuant to FCA regulation
1,925
1,925

- other services
1,925
1,925

7.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
574,311
557,250

Social security costs
57,042
54,535

Cost of defined contribution scheme
6,848
15,827

638,201
627,612


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration
9
8



Management
3
3

12
11


8.


DIRECTORS' REMUNERATION

2024
2023
£
£

Directors' emoluments
250,377
251,085

Company contributions to defined contribution pension schemes
1,321
1,321

251,698
252,406


During the year retirement benefits were accruing to 1 director (2023: 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £218,512 (2023: £220,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023: £1,321).

Page 17


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

9.


INCOME FROM INVESTMENTS

2024
2023
£
£

Income from fixed asset investments
4,604
4,065

4,604
4,065







10.


INTEREST RECEIVABLE

2024
2023
£
£


Other interest receivable
1,494
1,392

1,494
1,392


11.


TAXATION


2024
2023
£
£

CORPORATION TAX


Current tax on profits for the year
18,205
5,103

Adjustments in respect of previous periods
(7,187)
-


11,018
5,103


TOTAL CURRENT TAX
11,018
5,103

DEFERRED TAX


Origination and reversal of timing differences
7,370
6,113

TOTAL DEFERRED TAX
7,370
6,113


TAX ON PROFIT/(LOSS)
18,388
11,216
Page 18


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
11.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25% (2023: 22%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
107,454
(2,551)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 22%)
26,864
(561)

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
710
23,708

Capital allowances for year in excess of depreciation
-
(168)

Exempt Dividend Income
(21,480)
(18,432)

Other timing differences leading to an increase (decrease) in taxation
2,638
-

Adjustment to tax charge in respect of prior periods
196
-

Adjustment to brought forward values
(15,000)
(25,000)

Chargeable gains/(losses)
11,110
17,374

Deferred tax not recognised
13,997
14,295

Marginal relief
(647)
-

TOTAL TAX CHARGE FOR THE YEAR
18,388
11,216


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There are no details that affect future tax charges.


12.


DIVIDENDS

2024
2023
£
£


Dividends on equity capital
130,000
151,000

130,000
151,000

Page 19


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

13.


TANGIBLE FIXED ASSETS





Long-term leasehold property
Office equipment
Computer equipment
Total

£
£
£
£



COST OR VALUATION


At 1 October 2023
24,627
60,785
8,265
93,677



At 30 September 2024

24,627
60,785
8,265
93,677



DEPRECIATION


At 1 October 2023
14,978
58,039
8,265
81,282


Charge for the year on owned assets
7,471
1,316
-
8,787



At 30 September 2024

22,449
59,355
8,265
90,069



NET BOOK VALUE



At 30 September 2024
2,178
1,430
-
3,608



At 30 September 2023
9,649
2,746
-
12,395

Page 20


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


DEBTORS


2024
2023
£
£

DUE AFTER MORE THAN ONE YEAR

Other debtors
480,000
530,000

480,000
530,000

DUE WITHIN ONE YEAR

Other debtors
733
-

Prepayments and accrued income
72,947
73,977

553,680
603,977



15.


CURRENT ASSET INVESTMENTS

2024
2023
£
£

Listed investments
1,436,579
1,229,829

1,436,579
1,229,829


2024
2023
£
£


Opening fair value
1,229,829
1,409,352

Purchases
476,364
29,726

Sales
(303,306)
(146,370)

Movement on remeasurement to fair value
33,692
(62,879)

MARKET VALUE
1,436,579
1,229,829





16.


CASH AND CASH EQUIVALENTS

2024
2023
£
£

Cash at bank and in hand
56,784
237,511

56,784
237,511


Page 21


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

17.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024
2023
£
£

Trade creditors
1,103
-

Corporation tax
18,564
11,301

Other taxation and social security
18,010
16,258

Other creditors
1,775
2,590

Accruals and deferred income
69,305
78,105

108,757
108,254



18.


DEFERRED TAXATION




2024


£






At beginning of year
(78,642)


Charged to profit or loss
(7,370)



AT END OF YEAR
(86,012)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Unrealised gains on investments
(87,246)
(80,345)

Other differences
1,234
121

Capital gains/(losses)
-
1,582

(86,012)
(78,642)


19.


SHARE CAPITAL

2024
2023
£
£
ALLOTTED, CALLED UP AND FULLY PAID



1,000 (2023: 1,000) Ordinary shares of £1.00 each
1,000
1,000


Page 22


KEITH MONTGOMERY ASSOCIATES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

20.


RESERVES

Profit and loss account

Includes all current and prior period retained profits and losses. Included within the profit and loss reserve is £335,532 (2023: £162,411) in respect of net unrealised investment gains which are not distributable.


21.


PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The company made contributions of £6,848 (2023: £15,827) to the pension scheme. At the balance sheet date the company owed the scheme £1,775 (2023: £1,381)


22.


COMMITMENTS UNDER OPERATING LEASES

At 30 September 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
14,418
14,418

Later than 1 year and not later than 5 years
48,060
57,672

Later than 5 years
-
4,806

62,478
76,896


23.


TRANSACTIONS WITH DIRECTORS

At the year end R K Montgomery, a director and shareholder, owed the company £1,644 (2023: £Nil). This balance was unsecured, interest free and repayable on demand.

During the year, R K Montgomery and members of his immediate family received dividends of £130,000 (2023: £151,000).

The company occupies premises owned by R K Montgomery, a director and shareholder. No rental charges are payable in respect of these premises (2023: £Nil).
The company leased office space owned by J K Montogmery, a director and shareholder. During the year £Nil (2023: £6,500) was payable in respect of these premises.


24.


RELATED PARTY TRANSACTIONS

During the year Keith Montgomery Associates Limited had repayments totalling £10,000 from a company under common control. The total balance at year end owed to Keith Montgomery Associates Limited is £480,000 (2023: £530,000). The loan is secured over plant, machinery and other assets belonging to the borrower.


25.


CONTROLLING PARTY

The ultimate controlling party is R K Montgomery by virtue of his majority beneficial interest in the issued share capital.
Page 23


KEITH MONTGOMERY ASSOCIATES LIMITED

 
Page 24