| Sukin Limited |
| Strategic Report |
|
| The directors present their strategic report for the year ended 31 March 2025. |
|
| REVIEW OF BUSINESS |
Company turnover for the year 2025 was £22,344,455 (2024:£5,378.541). Profit for the financial year after taxation amounted to £281,847 (2024:£263,944).
The business consolidated profitability and turnover in line with expectations, carry is returning to the market and we are hopeful of a better opportunity set of viable investable instruments. The market trades close to full valuation but liquidity and momentum is strong. We remain ready to position aggressively as forecast returns and funding costs move towards more attractive margins. Looking ahead, we are cautiously optimistic about the improved economic environment and look to capture market dislocations and productivity improvements as they evolve. |
|
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The principal activity of the Company outlined above gives rise to exposure to financial and operational risks in the ordinary course of business. |
|
| Management risks |
| As with similar sized businesses, the company is run by a small management team. Careful selection of appropriate external partners and prioritising confidentiality in transactions are paramount requirements to ensure scale opportunities remain achievable. |
| Market risks |
| Market risk is the risk that the fair value of assets and financial liabilities change due to movement in market prices. This is a key requirement for any trading business, changes offer opportunities to profit. We monitor all exposures on a daily basis to ensure a good understanding of influencing factors, statistical analysis of error ranges and their impact on the company balance sheet. |
| Exchange rate fluctuations |
| A significant proportion of the company's trading is denominated in foreign currencies, particularly the US $. The majority of positions are hedged to reduce the exposure to exchange rate fluctuation, which are reported through the profit and loss account. |
| Liquidity risks |
| Liquidity risk is the risk that we are unable to meet high value short notice payment obligations in the event of market volatility impacting portfolio realisation values. A significant risk for any trading business, which remains at the forefront of any position taking decision. We manage liquidity by modelling likely liquidity drawdowns, position with significant margin to allow for likely market volatility, monitor for funds flows with drawdown potential, negotiate strong credit terms in a forward manner, and maintain a sufficiently diversified portfolio of assets. |
|
|
|
| This report was approved by the board on 3 September 2025 and signed on its behalf. |
|
|
|
| Mr F T Suterwalla |
| Director |
|
|
| Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
However, with respects to the opening balances and comparative information shown on the financial statements, we have not sought to obtain further audit evidence as the financial statements for the previous year were not audited. In forming our opinion, we have used other audit evidence to evaluate the overall adequacy of the information shown on the financial statements. We believe that the audit evidence that we have obtained, is sufficient and appropriate to provide a basis of our opinion. |
|
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
| Other information |
| The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
| We have nothing to report in this regard. |
|
| Opinions 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 |
| Sukin Limited |
| Statement of Cash Flows |
| for the year ended 31 March 2025 |
|
| Notes |
|
2025 |
|
2024 |
| £ |
£ |
| Operating activities |
| Profit for the financial year |
281,847 |
|
263,944 |
|
| Adjustments for: |
| Decrease in fair value of listed investments |
186,342 |
|
126,702 |
| Interest receivable |
(4,618) |
|
(10,192) |
| Interest payable |
887,612 |
|
755,553 |
| Tax on profit on ordinary activities |
93,949 |
|
87,981 |
| Depreciation |
7,711 |
|
7,711 |
| Others |
(182,724) |
|
(123,084) |
| Decrease in debtors |
37,196 |
|
399,181 |
| (Decrease)/increase in creditors |
(9,706) |
|
32,064 |
|
|
|
1,297,609 |
|
1,539,860 |
|
| Interest received |
1,000 |
|
6,574 |
| Interest paid |
|
|
(887,612) |
|
(755,553) |
| Corporation tax (paid) / Received |
(89,909) |
|
(131,418) |
|
| Cash generated by operating activities |
321,088 |
|
659,463 |
|
|
|
|
|
|
| Investing activities |
| Purchase of investments |
(1,279,091) |
|
(2,442,750) |
|
| Cash used in investing activities |
(1,279,091) |
|
(2,442,750) |
|
|
|
|
|
|
| Financing activities |
| New loans |
(566,817) |
|
3,248,222 |
|
| Cash (used in)/generated by financing activities |
(566,817) |
|
3,248,222 |
|
|
|
|
|
|
| Net cash (used)/generated |
| Cash generated by operating activities |
321,088 |
|
659,463 |
| Cash used in investing activities |
(1,279,091) |
|
(2,442,750) |
| Cash (used in)/generated by financing activities |
(566,817) |
|
3,248,222 |
|
| Net cash (used)/generated |
(1,524,820) |
|
1,464,935 |
|
| Cash and cash equivalents at 1 April |
1,626,909 |
|
161,974 |
| Cash and cash equivalents at 31 March |
102,089 |
|
1,626,909 |
|
|
|
|
|
|
| Cash and cash equivalents comprise: |
| Cash at bank |
102,089 |
|
1,626,909 |
|
|
|
|
|
|
|
|
|
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 such as investment, cash and debtors are measured at the present value of the amounts receivable, less an allowance for the expected level of doubtful receivables.
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.
Financial liabilities such as trade creditors, loans and finance leases are measured at the present value of the obligation. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
|
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Cash and cash equivalents |
|
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
|
|
Going concern |
|
The board considers it appropriate to adopt the on going basis of accounting in preparing these financial statements, having considered a period of at least 12 months from the approval of the financial statements. |
|
|
| 2 |
Analysis of turnover |
2025 |
|
2024 |
| £ |
£ |
|
|
Sale of bonds and strucutred notes |
21,050,925 |
|
4,212,893 |
|
Interest income |
1,293,530 |
|
1,165,648 |
|
|
|
|
|
|
22,344,455 |
|
5,378,541 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
22,344,455 |
|
5,378,541 |
|
|
|
|
|
|
|
|
|
|
| 3 |
Operating profit |
2025 |
|
2024 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
7,711 |
|
7,711 |
|
Auditors' remuneration for audit services |
4,200 |
|
4,200 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Staff costs |
2025 |
|
2024 |
| £ |
£ |
|
|
Wages and salaries |
- |
|
- |
|
Social security costs |
149 |
|
157 |
|
|
|
|
|
|
149 |
|
157 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
2 |
|
2 |
|
|
|
|
|
|
2 |
|
2 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Interest payable |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank loans and overdrafts |
864,422 |
|
732,381 |
|
Other loans |
23,190 |
|
23,172 |
|
|
|
|
|
|
887,612 |
|
755,553 |
|
|
|
|
|
|
|
|
|
| 6 |
Taxation |
2025 |
|
2024 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
95,877 |
|
89,909 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(1,928) |
|
(1,928) |
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
93,949 |
|
87,981 |
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
Profit on ordinary activities before tax |
375,796 |
|
351,925 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
93,949 |
|
87,981 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
1,928 |
|
1,928 |
|
|
Current tax charge for period |
95,877 |
|
89,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7 |
Tangible fixed assets |
|
|
|
|
|
|
|
|
Motor Vehicles |
|
|
|
|
|
|
|
|
At cost |
| £ |
|
Cost or valuation |
|
At 1 April 2024 |
53,976 |
|
At 31 March 2025 |
53,976 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2024 |
23,133 |
|
Charge for the year |
7,711 |
|
At 31 March 2025 |
30,844 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2025 |
23,132 |
|
At 31 March 2024 |
30,843 |
|
|
|
|
|
|
|
|
|
|
|
| 8 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
|
|
Corporation tax recoverable |
|
|
|
|
- |
|
198 |
|
Prepayments and accrued income |
75,301 |
|
112,299 |
|
|
|
|
|
|
75,301 |
|
112,497 |
|
|
| 9 |
Investments held as current assets |
2025 |
|
2024 |
| £ |
£ |
|
Fair value |
|
Listed investments |
20,215,703 |
|
18,936,612 |
|
|
|
|
|
|
|
|
|
|
Investment in listed equity and fixed income/investment bonds are shown at market value as at the balance sheet date. All the structured products are shown at fair value. |
|
| 10 |
Creditors: amounts falling due within one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Other loans |
14,691,196 |
|
15,258,013 |
|
Corporation tax |
95,877 |
|
89,909 |
|
Other creditors |
2,352,336 |
|
2,379,295 |
|
Accruals and deferred income |
173,063 |
|
155,810 |
|
|
|
|
|
|
17,312,472 |
|
17,883,027 |
|
Other creditors includes a loan from directors of £1,007,318 (2024:£1,034,277). This loan is non-interest bearing and has no fixed repayment terms. |
|
| 11 |
Creditors: amounts falling due after one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Other loans |
|
772,400 |
|
772,400 |
|
Other loans of £772,400 (2024:£772,400) represents a loan from Sakin Holdings Limited, a company incorporated in England. The directors of Sukin Limited are also the directors of Sakin Holdings Limited. Interest is payable at 3.00% per annum and the loan is repayable within 5 years. |
|
| 12 |
Loans |
2025 |
|
2024 |
| £ |
£ |
|
|
Secured loans within one year or on demand |
14,691,196 |
|
15,258,013 |
|
|
|
|
|
|
|
|
|
|
Secured loans relates to amount borrowed from LGT Bank (Singapore) Ltd and are secured on listed current investments held by the company and by way of a floating charge on the assets of the company. These are short-term loans renewed every week. |
|
|
| 13 |
Deferred taxation |
2025 |
|
2024 |
| £ |
£ |
|
|
Accelerated capital allowances |
5,783 |
|
7,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 April |
7,711 |
|
9,639 |
|
Credited to the profit and loss account |
(1,928) |
|
(1,928) |
|
|
At 31 March |
5,783 |
|
7,711 |
|
|
|
|
|
|
|
|
|
|
|
| 14 |
Share capital |
Nominal |
|
2025 |
|
2025 |
|
2024 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
1,000 |
|
1,000 |
|
1,000 |
|
|
|
|
|
|
|
|
|
|
| 15 |
Profit and loss account |
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 April |
2,042,723 |
|
1,778,779 |
|
Profit for the financial year |
281,847 |
|
263,944 |
|
|
At 31 March |
2,324,570 |
|
2,042,723 |
|
|
|
|
|
|
|
|
|
|
| 16 |
Related party transactions |
|
|
The loan from Sakin Holdings Limited carries interest at 3.00% per annum. For the year ended 31 March 2025, interest of £23,172 (2024:£23,172) is payable and charged to profit and loss account. |
|
| 17 |
Controlling party |
|
|
Mr F T Suterwalla and Mrs S F Suterwalla are the controlling parties by virtue of their shareholdings. |
|
| 18 |
Presentation currency |
|
|
The financial statements are presented in GBP Sterling but functional currency is US$. |
|
| 19 |
Legal form of entity and country of incorporation |
|
|
Sukin Limited is a private company limited by shares and incorporated in England. |
|
| 20 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
6 Ingleby Drive |
|
Harrow |
|
Middlesex |
|
HA1 3LE |