Contents of the Financial Statements
for the Period Ended 31 December 2024
Directors' report period ended
31 December 2024
The directors present their report with the financial statements of the company for the period ended 31 December 2024
Principal activities of the company
The Company was established on 6 October 2015 to provide the following services: (i) promoting investment in Los Angeles Capital Global Funds plc (the "Fund"), an Irish investment company established as an umbrella fund, with segregated liability between sub-funds pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended, to institutional investors located throughout Europe; and (ii) arranging deals in investment for subsequent investment management by the US Parent Company.
The Company is remunerated by the US Parent Company through a cost plus transfer pricing arrangement, which was placed into effect in August 2016 and updated in 2022, commensurate with the Company's registration with the FCA.
During the year ended 31 December 2024, financial activity reflects personnel and supporting operating expenses for the primary objectives of the Company, i.e., fund promotion and marketing of the various investment products offered. There was no additional share activity during the year and ordinary share capital in issue remains as 175,000 shares at 31 December 2024.
Additional information
The United Kingdom's exit from the European Union (the "EU") had the effect of terminating the Company's ability to market its products across the EU out of the Company's headquarters in London. The Company is limiting its marketing to the United Kingdom and select EU countries where the Company is permitted to conduct marketing activities pursuant to an exemption. Risks that could have an economic impact on the Company include currency fluctuation, exchange rate exposure and changes to the regulatory and tax environment. The Company engages legal, tax, and compliance advisors that have a significant role in preparing the Directors for a range of possible outcomes. The Directors believe the Company is in a strong financial position.
The Company distributed dividends in the amount of GBP 120,000 on 23 December 2024.
Grant Thornton UK LLP, the independent auditor for the Company, was appointed in 2016 and a Board consent action approving their appointment for 2024.
The report of the Directors has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.
Directors
The directors shown below have held office during the whole of the period from
1 January 2024
to
31 December 2024
Thomas D. Stevens
Daniel E. Allen
Charles Morris
Edwina Acheson
Secretary
Linda D. Barker
The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006
This report was approved by the board of directors on
16 April 2025
And signed on behalf of the board by:
Name: Linda D. Barker
Status: Secretary
Profit And Loss Account
for the Period Ended
31 December 2024
|
2024
|
2023
|
|
£
|
£
|
| Turnover: |
2,052,573
|
1,908,021
|
| Cost of sales: |
(
1,871,482
)
|
(
1,734,296
)
|
| Gross profit(or loss): |
181,091
|
173,725
|
| Administrative expenses: |
|
(
269
)
|
| Other operating income: |
5,477
|
|
| Operating profit(or loss): |
186,568
|
173,456
|
| Profit(or loss) before tax: |
186,568
|
173,456
|
| Tax: |
(
48,498
)
|
(
42,062
)
|
| Profit(or loss) for the financial year: |
138,070
|
131,394
|
Balance sheet
As at
31 December 2024
|
Notes |
2024
|
2023
|
|
|
£
|
£
|
| Current assets |
| Debtors: |
3 |
931,351
|
799,217
|
| Cash at bank and in hand: |
|
490,033
|
1,028,852
|
| Total current assets: |
|
1,421,384
|
1,828,069
|
| Prepayments and accrued income: |
|
2,992
|
2,571
|
| Creditors: amounts falling due within one year: |
4 |
(
112,686
)
|
(
537,020
)
|
| Net current assets (liabilities): |
|
1,311,690
|
1,293,620
|
| Total assets less current liabilities: |
|
1,311,690
|
1,293,620
|
| Total net assets (liabilities): |
|
1,311,690
|
1,293,620
|
| Capital and reserves |
| Called up share capital: |
|
175,000
|
175,000
|
| Other reserves: |
|
950,403
|
950,403
|
| Profit and loss account: |
|
186,287
|
168,217
|
| Total Shareholders' funds: |
|
1,311,690
|
1,293,620
|
The notes form part of these financial statements
Balance sheet statements
For the year ending 31 December 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
This report was approved by the board of directors on
16 April 2025
and signed on behalf of the board by:
Name:
Thomas D. Stevens
Status: Director
The notes form part of these financial statements
Notes to the Financial Statements
for the Period Ended 31 December 2024
-
1. Accounting policies
Basis of measurement and preparation
These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102
Other accounting policies
The Company is incorporated under the Companies Act of 2006 in England and Wales. The Company's significant accounting policies are set out below. In preparing the financial statements, the Directors are required to make significant judgements and estimates in application of the Company's accounting policies.
Basis of Preparation - These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and with the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are presented in Sterling.
Going Concern - After reviewing the Company's forecasts and projections, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, which is at least twelve months from when the financial statements are authorised for issue. Moreover, the Directors have confirmed the ongoing support of the US Parent Company. The Company therefore continues to adopt the going concern basis in preparing these financial statements.
Revenue - Revenue comprises of global services revenue, which includes marketing, promotional activities, sales support, and other client services for the investment management services of the US Parent Company and distribution of the Fund. Remuneration for global services performed and expenses incurred in pursuit are established in a transfer pricing arrangement, the "Global Services Agreement", between the Company and the US Parent Company. The Company is reimbursed by the US Parent Company on the basis of its expenses, plus an amount equal to 10% of all qualifying expenses. Global services revenue is recognised quarterly on an accruals basis as earned, in accordance with the contractual terms of the Global Services Agreement.
Taxation - Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date. Current tax expense is presented in profit for the financial year. Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. Deferred tax assets are only 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. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed. Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Deferred tax assets and deferred tax liabilities are offset only if: (i) the Company has a legally enforceable right to offset current tax assets against current tax liabilities, and (ii) the deferred tax assets and deferred tax liabilities related to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets of a net basis, or to realise the assets and settle the liabilities simultaneously.
Leases - Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the Company. All other leases are classified as operating leases. Rentals payable in respect of operating leases are charged to profit or loss on a straight-line basis over the lease term.
Foreign Currencies - Transactions on foreign currencies are recorded at the rate ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the statement of financial position date. All difference are taken to profit or loss.
Employee Benefits - Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.
Cash and Cash Equivalents - Cash and cash equivalents comprises of cash in hand and deposits on call with an institutional bank.
Debtors - The Company assesses whether there is objective evidence that client receivables are impaired periodically, but at a minimum of each statement of financial position date. The principal criteria for determining whether there is objective evidence of impairment is severe delinquency in contractual payments due under the investment management agreement.
Creditors - Short term trade creditors are measured at the transaction price.
Provisions for Liabilities - Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Share Capital - Ordinary shares are classified as equity. To the extent that the shares have been subscribed for but not issued, and the Company has not yet received the cash or other resources, the Company does not recognise an increase in equity. Costs associated with the issuance of shares are deducted from the share premium account.
Capital Contribution - Cash or other resources contributed to the Company by the US Parent without the intent of repayment is classified as equity.
Financial Risk Management - Concentration of Credit Risk: The Company is potentially exposed to concentration of credit risk on client receivables in the event a client defaults on billings due for services provided. At 31 December 2024, the US Parent Company was the Company's only outstanding debtor. As such, the Company is not subject to significant credit risk.
Liquidity Risk: Liquidity risk is the risk that the Company will have insufficient liquid resources available to fulfill its operational plans or to meet its financial obligations as they fall due. Liquidity risk is managed by the Company's finance department through daily monitoring of expected cash flows and strict adherence with regulatory requirements. In the event that the operating cash flows would not cover all the financial obligations, the Company is ultimately funded by the US Parent Company.
Going Concern Assessment: Annually, management obtains confirmations that LACM Global, Ltd., will be supported by the US Parent Company. It has been confirmed that the US Parent Company intends to financially support LACM Global, Ltd. for a period of at least 12 months from the date of approval of the statutory financial statements for the year ended 31 December 2024.
Foreign Exchange Transactional Currency Exposure: The Company is exposed to currency exchange risk as a result of limited proportions of its receivables and operating expenses being denominated in non-sterling currencies. The net exposure of each currency is monitored, however, due to the short-term nature of Company receivables and infrequent nature of non-sterling operating expenses during the year ended 31 December 2024, there is no significant active management of this risk.
Notes to the Financial Statements
for the Period Ended 31 December 2024
-
2. Employees
|
2024 |
2023 |
| Average number of employees during the period |
2
|
2
|