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Registered number:
AUDITED
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024 |
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PRAGMA WEALTH MANAGEMENT LIMITED
COMPANY INFORMATION
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PRAGMA WEALTH MANAGEMENT LIMITED
CONTENTS
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PRAGMA WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The year 2024 concluded with a solid year for Global Equity Markets and Pragma portfolios were positive for 2024, which continued from a successful 2023. This surge was propelled by the unexpected resilience of the US economy, which defied recessionary fears, and a surge in liquidity prompted by the Federal Reserve's indication of the conclusion of its rate hike cycle. coinciding with a decline in inflation expectations These shifts significantly influenced market sentiment and performance trends. Pragma started the year with a conservative stance, which translated in higher-than-average cash levels in our portfolios. These cash levels well notably reduced during the year as we kept finding compelling opportunities to deploy capital.
The total revenue of 2024 has grown around 31% from 2023. The revenue growth was coming from the commitments into private equity and new advisory mandates.
Market risk remained a focal point for Pragma, with ongoing efforts directed towards rigorous risk analysis, meticulous portfolio construction, and the exploration of potential market hedging strategies. Currency risk, particularly concerning income streams denominated in euros, prompted the firm to adopt prudent policies, including timely currency conversions and the option to hedge against FX exposure, when necessary, supported by readily available credit facilities.
Continued investments in IT security and compliance consultants underscored Pragma's unwavering commitment to safeguarding business continuity and fortifying defences against potential threats such as system breaches and failures. Furthermore, a culture of compliance was fostered through regular training initiatives, ensuring that all personnel remained abreast of evolving regulatory and AML requirements, thus further enhancing the firm's resilience and adaptability in a dynamic operating environment. Outlook As we look into 2025, our focus expands beyond market-driven strategy to include internal growth and operational enhancement. We recognise that to perform for our clients we need to operate at the highest level in each aspect of our business. We remain committed to applying strategic insight while evolving our platform to capture new opportunities and operate with greater agility in a dynamic investment environment. Building on the foundation laid in previous years, 2025 will mark a deliberate investment in expanding the Pragma team. We recognize that scaling our capabilities—both in terms of talent and infrastructure—is essential to sustaining performance and deepening our competitive edge. Strategic hires across research, operations, and technology will support our broader objectives, strengthen decision-making, and enable faster execution. In parallel, we are launching an internal technology initiative aimed at increasing automation across key areas of our daily work. From streamlining data ingestion and reporting to enhancing portfolio monitoring and due diligence workflows, this project will help free up valuable team resources and improve overall efficiency. The goal is to build tools that not only reduce manual processes but also empower more analytical depth and responsiveness in our investment process. As we continue to evolve our investment framework—balancing Compounders with high-conviction Alpha Program managers—we believe these internal initiatives will reinforce our ability to execute effectively and consistently. In 2025, we are focused not only on navigating markets but also on building a more resilient and future-ready platform from within.
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PRAGMA WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Promoting the success of the Company
Section 172 of the Companies Act 2006 remained a guiding principle for Pragma's board of directors, emphasizing the importance of considering the interests of stakeholders in decision-making processes. This commitment was underscored by the integration of stakeholder considerations into the Strategic Report, reflecting the holistic approach adopted by the company. Continuing its tradition of responsible corporate governance, the directors remained dedicated to balancing the interests of the company's employees and stakeholders, while also considering the broader impacts of its activities on the community. the financial system, and society at large. Acting in good faith and fairness, the directors prioritised actions aimed at promoting the long-term success of the company for its members, thereby upholding Pragma's reputation for high standards of business conduct. The company's well-established channels of communication facilitated ongoing dialogue with employees, enabling them to voice their views and ideas. Embracing diversity within the workforce remained a cornerstone of Pragma's culture, fostering an environment conducive to professional growth and advancement for all staff members. Furthermore, Pragma maintained active engagement with its principal stakeholders, including shareholders, investors, staff, and suppliers, through regular communication and collaboration. By fostering open dialogue and transparency, Pragma continued to strengthen its relationships with key stakeholders, underpinning its commitment to sustainable growth and responsible business practices in 2024.
This report was approved by the board and signed on its behalf.
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PRAGMA WEALTH MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £68,882 (2023 - £45,993).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who served during the year were:
Qualifying third party indemnity provisions are currently in force for the benefit of the directors.
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PRAGMA WEALTH MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditors, Wellden Turnbull Ltd, were appointed in the period and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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PRAGMA WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRAGMA WEALTH MANAGEMENT LIMITED
We have audited the financial statements of Pragma 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 Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of 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 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.
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 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.
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PRAGMA WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRAGMA WEALTH MANAGEMENT LIMITED (CONTINUED)
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.
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.
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PRAGMA WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRAGMA WEALTH MANAGEMENT LIMITED (CONTINUED)
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. We have identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to relate to the timing and recognition of revenue and the override of controls by management. We have obtained an understanding of the legal and regulatory frameworks that the Company operates within including both those that directly have an impact on the financial statements and more widely those for which non-compliance could have a significant impact on the Company's operations and reputation. The Companies Act 2006, regulatory standards and requirements of the Financial Conduct Authority, employee legislation, UK company tax and data protection law are those we have identified in this regard. Auditing standards limit the required procedures as to non-compliance with laws and regulations to enquiries of those charged with governance and review of any applicable correspondence.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance as to actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;
∙Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;
∙Assessing the reasonableness of revenue recognised in the period based on contractual terms and the requirement of accounting standards;
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.
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PRAGMA WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRAGMA WEALTH MANAGEMENT LIMITED (CONTINUED)
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 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.
for and on behalf of
Albany House
Claremont Lane
Esher
KT10 9FQ
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PRAGMA WEALTH MANAGEMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRAGMA WEALTH MANAGEMENT LIMITED
REGISTERED NUMBER: 04191349
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 27 form part of these financial statements.
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PRAGMA WEALTH MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRAGMA WEALTH MANAGEMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Pragma Wealth Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Scalpel 18th Floor, 52 Lime Street, London, EC3M 7AF.
2.Significant accounting policies
Having reviewed the Company's financial forecasts and expected future cash flows, the Directors have a reasonable expectation that the Company has sufficient resources to meet its liabilities as they fall due for a period of at least 12 months and will continue into operational existence for the foreseeable future. Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the Company's activities. Turnover is shown net of value added tax, returns, rebates and discounts. When the outcome of a transaction involving the rendering of services can be estimated reliably, the Company recognises turnover associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: (a) the amount of turnover can be measured reliably; (b) it is probably that the economic benefits associated with the transaction will flow to the entity; (c) the stage of completion of the transaction at the end of the reporting period can be measured reliably; and (d) the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Significant accounting policies (continued)
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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.
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Significant accounting policies (continued)
At each reporting period end date, the Company reviews the carrying amounts of its tangible and intangible 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.
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 Balance Sheet when the Company becomes
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Significant accounting policies (continued)
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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs 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 receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
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 instruments 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 payables, bank loans and other loans are initially measured at their transaction price after transaction costs. 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 payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables 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 assets
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Significant accounting policies (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.
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.
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.
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.
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Significant accounting policies (continued)
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Management do not consider the Company to have any key sources of estimation uncertainty nor any significant judgements or assumptions in preparing these financial statements.
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
In the March 2021 Budget it was announced that legislation will be introduced in the Finance Bill 2021 to increase the main rate of UK corporation tax from 19% to 25%, effective 1 April 2023. The impact of this change was accounted for in 2022 on deferred tax and in the prior year on current tax by using a blended tax rate of 23.5%. The main rate of UK corporation tax of 25% has been used to calculate the tax charge on profit in the current year.
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Capital redemption reserve
Profit and loss account
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £48,959 (2023 - £37,283). Contributions totaling £nil (2023 - £6,287) were payable to the fund at the balance sheet date and are included in creditors.
During the year the Company incurred expenses of £16,000 from Trident Trust Company. Trident Trust Company is a trustee of the Pragma Wealth Management Employee Benefit Trust.
There is no ultimate controlling party.
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Pragma Wealth Management Limited is incorporated in the UK and is authorised and regulated by the FCA. The company is a CPMI, a full-scope Alternative Investment Fund Manager (“AIFM”), with MiFID top up permissions. As a SNI MIFIDPRU investment firm, that has no additional tier 1 instruments in issue, the company is only required to disclose its remuneration policies and practices, as per MIFIPRU 8.1.
These disclosures are made by the company on a solo basis as required by MIFIDPRU 8.1.7R. MIFIDPRU 8.6 - Remuneration Pragma Wealth Management Limited is subject to both the ‘AIFM Remuneration Code’ and ‘MIFIDPRU Remuneration Code’. The company considers that the MIFIDPRU Remuneration requirements, for SNI MIFIDPRU investment firms, are in general less demanding than the requirements under the AIFM Remuneration Code. Under SYSC 19G.1.20 R, a company such as Pragma Wealth Management Limited which is subject to multiple remuneration codes, with provisions imposing different remuneration requirements, only one of which can be complied with, must comply with the most stringent of the relevant provisions. The company, therefore, complies with the most stringent provisions, which it considers are found in the AIFM Remuneration Code, with respect to all of its Staff Members, all of whom are involved with the AIFs it is AIFM to. The primary reason for this conclusion, are the requirements to identify Material Risk Takers as remuneration code staff and consider the application of the payout process rules, unless the company considers that it is appropriate to disapply the payout process rules. Distributions to Senior Management and Owners In accordance with the guidance in SYSC 19G.4.4, at the end of each year, the residual profits of the company, which is a private limited company, are distributed among the owners through dividends. The level of ownership of each owner is reflected in the proportion of ownership shares they have. As residual profits are distributed according to the ownership shares and are not linked to work or performance, this is not considered to be remuneration for the purpose of the company’s Remuneration Policy. All other distributions received by Senior Managers (who may also be owners) are classed as fixed or variable, depending on whether they are discretionary and based on performance of the individual or their business unit. Qualitative Disclosures The company has in place a Remuneration Policy which is approved by the Board at least annually. The Remuneration Policy’s overarching aim is the promotion of sound and effective risk management, whilst reducing conflicts of interests and encouraging good conduct amongst employees. The purpose of the Remuneration Policy is to set out how the company will provide remuneration in a manner that is consistent with the relevant remuneration codes as outlined above, with the main objective of the financial incentives being to attract, motivate and maintain high-calibre employees. The remuneration strategy has been designed to ensure consistency with the risk profiles, rules and instruments of incorporation of the funds managed, managed accounts, capital introduction accounts and with the objectives set out in the company’s business plan and to ensure no conflict of interest between employees and investors, and compliance with conduct of business rules. The company does not believe it is proportionate to have a standalone Remuneration Committee. As noted above, while the company is not required to identify Material Risk Takers as an SNI MIFIDPRU investment firm, it is required to do so under the AIFM Remuneration Code.
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PRAGMA WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company has identified its Remuneration Code Staff accordingly. The company’s approach to remuneration for all staff includes:
∙Pragma Wealth Management Limited's regulatory capital and liquidity position and the maintenance of an appropriate surplus of capital and liquidity.
∙The performance of individual Staff members with respect to quantitative financial metrics.
∙Assessment of the performance of personnel against non-financial metrics, such as good conduct.
∙The performance of the company.
All remuneration payments take the form of cash payments
Quantitative Disclosures The company considers that it has a single business area (investment management), and the total remuneration paid to Staff as required under MIFIDPRU 8.6.8R (4) can be found below. The variable remuneration reflects such remuneration paid with respect to performance over the financial year (even if paid following the end of the year).
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