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Registered number: OC402138 PILLARFOUR SECURITIES LLP ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
PILLARFOUR SECURITIES LLP INFORMATION
Designated Members Pillarfour Capital Limited
P J Colucci
A K Fountain
D H Dudlyke
LLP registered number OC402138
Registered office 2 Allen Street London W8 6BH
Independent auditors BKL Audit LLP Chartered Accountants Statutory Auditor 35 Ballards Lane London N3 1XW
PILLARFOUR SECURITIES LLP CONTENTS
| Page
Members' Report | 1 - 2
Independent Auditors' Report | 3 - 6
Statement of Comprehensive Income | 7
Statement of Financial Position | 8 - 9
Reconciliation of Members' Interests | 10
Notes to the Financial Statements | 11 - 17
PILLARFOUR SECURITIES LLP MEMBERS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The members present their annual report together with the audited financial statements of Pillarfour Securities LLP (the "LLP") for the year ended 31 December 2024. Principal activities The principal object of the LLP is to provide financial advisory services related to mergers and aquisitions, corporate finance and equities brokerage. Designated Members Pillarfour Capital Limited, P J Colucci, A Fountain and D Dudlyke were designated members of the LLP throughout the period. Members' capital and interests Each member's share of the profit is determined by their subscription to the capital of the LLPs which is repayable following retirement from the LLP. Details of changes in members' capital in the ended 31 December 2024 are set out in the Reconciliation of Members' Interests. Members are remunerated from the profits of the LLP and are required to make their own provision for pensions and other benefits. Profits are allocated and divided between members after finalisation of the financial statements. Members draw a proportion of their profit shares monthly during the year in which it is made, with the balance of profits being distributed after the year, subject to the cash requirements of the business. Members' responsibilities statement The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 LLP and of the profit or loss of the LLP for that period. In preparing these financial statements, the members are required to: ∙select suitable accounting policies and then apply them consistently; ∙make judgements 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 LLP will continue in business. Page 1
PILLARFOUR SECURITIES LLP MEMBERS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to auditors Each of the persons who are members at the time when this Members' Report is approved has confirmed that: ∙so far as that member is aware, there is no relevant audit information of which the LLP's auditors are unaware, and ∙that member has taken all the steps that ought to have been taken as a member in order to be aware of any relevant audit information and to establish that the LLP's auditors are aware of that information. Independent Auditors Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the members and signed on their behalf by:
P J Colucci Designated member
Date: 24 April 2025
Page 2
PILLARFOUR SECURITIES LLP INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PILLARFOUR SECURITIES LLP
Opinion
We have audited the financial statements of Pillarfour Securities LLP (the 'LLP') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Reconciliation of Members' Interests 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 our opinion the financial statements: ∙give a true and fair view of the state of the LLP's affairs as at 31 December 2024 and of its result 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, as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
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 LLP 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 members' 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 LLP'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 members with respect to going concern are described in the relevant sections of this report. Page 3
PILLARFOUR SECURITIES LLP INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PILLARFOUR SECURITIES LLP (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The members are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006, as applied to limited liability partnerships, 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 ∙we have not received all the information and explanations we require for our audit.
Responsibilities of members
As explained more fully in the Members' Responsibilities Statement set out on page 1, the members 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 members 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 members are responsible for assessing the LLP'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 members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so. Page 4
PILLARFOUR SECURITIES LLP INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PILLARFOUR SECURITIES LLP (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: ∙Enquiring of management around actual and potential litigation and claims ∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations ∙Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias ∙Enquiring of LLP staff in finance and compliance functions to identify any instances of non-compliance with laws and regulations Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: ∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the LLP's internal control. ∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members. ∙Conclude on the appropriateness of the members' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the LLP's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the LLP to cease to continue as a going concern. Page 5
PILLARFOUR SECURITIES LLP INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PILLARFOUR SECURITIES LLP (CONTINUED) ∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP'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 LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed. Michael Wedge FCA (Senior Statutory Auditor) for and on behalf of BKL Audit LLP Chartered Accountants Statutory Auditor London 24 April 2025 Page 6
PILLARFOUR SECURITIES LLP STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 307,931 | 453,812
Gross profit |  | 307,931 | 453,812
Administrative expenses |  | (282,375) | (420,942)
Operating profit | 5 | 25,556 | 32,870
Profit for the year before members' remuneration and profit shares |  | 25,556 | 32,870
Profit for the year before members' remuneration and profit shares |  | 25,556 | 32,870
Members' remuneration charged as an expense |  | (25,556) | (32,870)
Results for the year available for discretionary division among members |  | - | -
There was no other comprehensive income for 2024 (2023:£NIL).
The notes on pages 11 to 17 form part of these financial statements.
Page 7
PILLARFOUR SECURITIES LLP REGISTERED NUMBER: OC402138 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 8 | 67,748 |  | 12,301 |
Cash at bank and in hand | 9 | 62,452 |  | 205,635 |
|  | 130,200 |  | 217,936 |
Creditors: Amounts Falling Due Within One Year | 10 | (67,343) |  | (147,765) |
Net current assets |  |  | 62,857 |  | 70,171
Total assets less current liabilities |  |  | 62,857 |  | 70,171
Net assets |  |  | 62,857 |  | 70,171
Represented by: |  |  |  |  |
Loans and other debts due to members within one year |  |  |  |  |
Members' capital classified as a liability |  |  | 57,000 |  | 57,000
Other amounts | 11 |  | 5,857 |  | 13,171
|  |  | 62,857 |  | 70,171
|  |  | 62,857 |  | 70,171
Total members' interests |  |  |  |  |
Amounts due from members (included in debtors) | 8 |  | (301) |  | (301)
Loans and other debts due to members | 11 |  | 62,857 |  | 70,171
|  |  | 62,556 |  | 69,870
Page 8
PILLARFOUR SECURITIES LLP REGISTERED NUMBER: OC402138 STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2024 The financial statements were approved and authorised for issue by the members and were signed on their behalf by:
P J Colucci
Designated member
Date: 24 April 2025
The notes on pages 11 to 17 form part of these financial statements. Pillarfour Securities LLP has no equity and, in accordance with the provisions contained within the Statement of Recommended Practice "Accounting by Limited Liability Partnerships", has not presented a Statement of Changes in Equity. Page 9
PILLARFOUR SECURITIES LLP RECONCILIATION OF MEMBERS' INTERESTS FOR THE YEAR ENDED 31 DECEMBER 2024
| DEBT Loans and other debts due to members less any amounts due from members in debtors
| Members' capital (classified as debt) | Other amounts | Total
| £ | £ | £
Amounts due to members | 52,000 | 42,188 | 94,188
Amounts due from members |  | (301) | (301)
Balance at 1 January 2023 | 52,000 | 41,886 | 93,886
Members' remuneration charged as an expense | - | 32,870 | 32,870
Members' interests after profit for the year | 52,000 | 74,756 | 126,756
Amounts introduced by members | 5,000 | - | 5,000
Drawings on account and distribution of profit | - | (61,886) | (61,886)
Amounts due to members | 57,000 | 13,171 | 70,171
Amounts due from members |  | (301) | (301)
Balance at 31 December 2023 | 57,000 | 12,870 | 69,870
Members' remuneration charged as an expense | - | 5,556 | 5,556
Members' interests after profit for the year | 57,000 | 18,426 | 75,426
Other division of profits | - | 20,000 | 20,000
Drawings | - | (32,870) | (32,870)
Amounts due to members | 57,000 | 5,857 | 62,857
Amounts due from members |  | (301) | (301)
Balance at 31 December 2024 | 57,000 | 5,556 | 62,556
The notes on pages 11 to 17 form part of these financial statements.
There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.
Page 10
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Pillarfour Securities LLP ("the LLP") provides financial advisory services related to mergers and acquisitions, corporate finance and equities brokerage. The LLP is authorised and regulated by the Financial Conduct Authority (FCA). The LLP is a limited liability partnership incorporated in the United Kingdom. Its principal place of business is 2 Allen Street, London, W8 6BH. 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 ("FRS 102") and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships". FRS 102 allows a qualifying entity certain disclosure exemptions subject to certain conditions which have been complied with, including notification of, and no objection to, the use of exemptions by the LLP's members (see note 2.2 below). The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies (see note 3).
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The LLP has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Pillarfour Capital Limited as at 31 December 2024 and these financial statements may be obtained from 2 Allen Street, London, W8 6BH.
| 2.3 | Going concern
The financial statements have been prepared on the going concern basis, which assumes that the LLP will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due. The LLP is also is well capitalised as per its FCA capital requirements. The members have reviewed forecasts and budgets in light of the above and are confident of the LLP’s ability to continue trading as a going concern for the foreseeable future. Page 11
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.4 | Foreign currency translation
Functional and presentation currency The LLP's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
| 2.5 | Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the LLP and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue comprises fees from financial advisory services supplied during the period, exclusive of Value Added Tax. Financial advisory fee income is recognised in the period the service is provided.
| 2.6 | Division and distribution of profits
A division of profits is the mechanism by which the profits of an LLP become a debt due to members. A division may be automatic or discretionary, may relate to some or all of the profits for a financial period and may take place during or after the end of a financial period. An automatic division of profits is one where the LLP does not have an unconditional right to avoid making a division of an amount of profits based on the members' agreement in force at the time, whereas a discretionary division of profits requires a decision to be made by the LLP, which it has the unconditional right to avoid making. The LLP divides profits automatically. Automatic divisions of profits are recognised as 'Members' remuneration charged as an expense in the Statement of Comprehensive Income. Page 12
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.7 | 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.
| 2.8 | Financial instruments
The LLP only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from other third parties and loans to related parties. (i) Financial assets Basic financial assets, including trade and other debtors and amounts due from members and related companies are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. 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. 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 assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. (ii) Financial liabilities Basic financial liabilities, including trade and other creditors and accruals, and amounts due to related companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. Page 13
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.8 | Financial instruments (continued)
(iii) Offsetting Financial assets and liabilities are offset and 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.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the year. However, the nature of the estimation means that actual outcomes could differ from those estimates. No material judgments (apart from those involving estimates) have been made in the process of applying the above accounting policies. There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
4. | Turnover
The whole of the turnover is attributable to one continuing activity, the supply of financial advisory services. Analysis of turnover by country of destination:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 87,270 | 64,293
| Rest of the world | 220,661 | 389,519
|  | 307,931 | 453,812
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Exchange differences | 3,381 | 200
Page 14
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
6. | Auditors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the LLP's auditors and their associates for the audit of the LLP's financial statements | 7,000 | 7,000
| The LLP has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent LLP.
7. | Information in relation to members
|  |  |  |  | 2024 | 2023
|  |  |  |  | Number | Number
| The average number of members during the year was | 4 | 4
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| The average members remuneration during the year was | 6,389 | 8,218
| The member with the largest entititlement to profit from the LLP during the period was allocated £20,000 (2023: £20,000).
8. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade debtors | - | 12,000
| Amounts owed by group undertakings | 67,447 | -
| Amounts due from members | 301 | 301
|  | 67,748 | 12,301
| Amounts owed from group undertakings are unsecured, interest free and repayable on demand.
9. | Cash and cash equivalents
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Cash at bank and in hand | 62,452 | 205,635
|  | 62,452 | 205,635
Page 15
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | Creditors: Amounts falling due within one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade creditors | 5,000 | 68,876
| Amounts owed to group undertakings | 51,989 | 67,187
| Other taxation and social security | 3,354 | 4,700
| Accruals and deferred income | 7,000 | 7,002
|  | 67,343 | 147,765
| Amounts due to group undertakings are unsecured, interest free and repayable on demand.
11. | Loans and other debts due to members
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Members' capital treated as debt | 57,000 | 57,000
| Other amounts due to members | 5,857 | 13,171
|  | 62,857 | 70,171
Loans and other debts due to members may be further analysed as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Falling due within one year | 62,857 | 70,171
|  | 62,857 | 70,171
Under the LLP's FCA licence, there are restrictions which impact the ability of the members of the LLP to reduce the amount of Members' other interests. Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up. Page 16
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
12. | Related party transactions
| At the year end, a balance of £67,447 (2023: £Nil) was due from the ultimate parent undertaking. A company, who is a member of the LLP, made recharges of £99,669 (2023: £93,277) to the LLP during the year. This company also had a balance included in other creditors at the year end of £51,989 (2023: £67,187). At the year end the LLP was charged by a company with directors in common £75,000 (2023: £209,005) relating to consultancy fees. During the year, the LLP was charged by a company with a member in common £97,111 (2023: £93,130) in legal and professional fees. The following members are considered to be related parties due to either voting rights and/or status as designated members: • Pillarfour Capital Limited • Paul Colucci • Andrew Fountain • David Dudlyke The above members are considered to be key management and are responsible for planning, directing and contolling the activities of the LLP. Details of transactions with these members can be found in the Members' Reconciliation note.
13. | Controlling party
The immediate parent undertaking is Pillarfour Capital Limited. The ultimate parent undertaking is Pillarfour Capital Inc, a Canadian company. Pillarfour Capital Inc. has no ultimate controlling party. Page 17
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
MIFIDPRU 8 Public Disclosure Document For the period 1st January 2024 to 31st December 2024 Overview and summary PillarFour Securities LLP is regulated by the Financial Conduct Authority (“FCA”) as a Markets in Financial Instruments (“MiFID”) firm and subject to the rules and requirements of the FCA’s Prudential Sourcebook for MiFID Investments Firms (“MIFIDPRU”) handbook. For the purposes of MIFIDPRU, the Firm has been classified as a small non-interconnected (“SNI”) firm. The Firm has produced this Public Disclosure Document in line with the rules and requirements of MIFIDPRU 8, as applicable to SNI firms. This Public Disclosure Document has been prepared based on the audited financials as at 31st December 2024, covering the financial period 1st January 2024 to 31st December 2024. The Firm’s main business activity is the provision of corporate finance advisory services. 1 Risk management objectives and policies The Firm has implemented and embedded a risk management framework, policies and procedures across all relevant risk areas of the Firm. The Partners set the business strategy and risk appetite statement of the Firm, which flows through to the risk management framework of the Firm. In line with the Firm’s business strategy, risk appetite and risk management framework the Firm identifies and further assesses key risks within the Firm’s Internal Capital and Risk Assessment (“ICARA”) process. The Firm maintains a risk register, which includes risk assessment and rating methodologies in accordance with its risk appetite statement. Key risks are reported to the Partners at each meeting. 1.1 Own funds requirements – MIFIDPRU 4 As an SNI firm without permissions for dealing as principle or holding client money or client assets, the Firm is subject to a Permanent Minimum Requirement of £75,000. However it benefits from the transitional provisions detailed in MIFIDPRU TP2 2.16 R 4 (d) and is able to apply a Transitional own funds requirement of £60,000 for 2024. The Firm calculates its own funds requirement based on the Transitional own funds requirement. It is not subject to any K-factor requirements. The Firm has further assessed any risks facing its business operations within its ICARA and quantified additional own funds and liquidity, where required. 1.2 Concentration risk – MIFIDPRU 5 The Firm does not conduct any trading on its own account and does not have regulatory permissions for dealing as principal. The Firm therefore does not have any concentration risks on or off-balance sheet and does not operate a trading book. 1.3 Liquidity – MIFIDPRU 6 The Firm maintains minimum liquidity at all times in compliance with the Basic Liquid Asset Requirement (BLAR), being at least 1/3 of its FOR. Page 18
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 The Firm does not provide any client guarantees and therefore its entire liquidity requirement is driven by its expenses, as captured by the FOR. As part of the ICARA, the Firm also maintains liquidity to satisfy its net wind-down costs and any additional liquidity requirements which the ICARA identified for supporting the ongoing business activities of the Firm. 2 Own funds 2.1 Own funds requirements The Firm calculates its own funds requirement as an SNI firm in line with the rules and requirements in MIFIDPRU 4.3 for SNI firms. Page 19
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 In addition, the Firm has completed its ICARA and analysis to determine its net wind-down requirements and any additional own fund requirements to fund its on-going operations. The Firm’s risk appetite statement and assessment of risks through its risk management framework and risk register form the basis of its ICARA and assessment of the overall financial adequacy rule in line with MIFIDPRU 7.4.7. The Partners review, challenges and approve the ICARA and conclusions of own funds requirements. 3. Remuneration arrangements The Firm has adopted a remuneration policy and procedures that comply with the requirements of chapter 19G of the FCA's Senior Management Arrangements, Systems and Controls Sourcebook (“SYSC”). In accordance with MIFIDPRU 8.6.2 the Firm makes the following qualitative remuneration disclosures: • The Firm’s remuneration policies and practices are reviewed annually to ensure they are appropriate and proportionate to the nature, scale and complexity of the risks inherent in the business model and the activities of the Firm. • The Governing Body, as the Remuneration Committee, is directly responsible for the overall remuneration policy. • The Firm ensures that its remuneration structure promotes effective risk management and balances the fixed and variable remuneration components for all staff. • Variable remuneration is adjusted in line with capital and liquidity requirements as well as the Firm’s performance. The Members of the LLP receive variable remuneration as a result of the structure of the business. The Firm only employs 1 temporary member of staff. PillarFour’s Remuneration Policy sets out the criteria for setting fixed and variable remuneration. All remuneration paid to staff members is clearly categorized as either fixed or variable remuneration. Fixed remuneration is based upon a staff member’s professional experience and organisational responsibility. It is permanent, pre-determined, non-discretionary, non-revocable and not dependent on performance. Variable remuneration is based upon staff members’ performance or, in exceptional cases, other conditions. Performance reflects the long-term performance of the staff member as well as performance in excess of the staff member’s job description and terms of employment, and • includes discretionary pension benefits; and • includes carried interest, as referred to in SYSC 19G.1.27R. Total remuneration is based on balancing both financial and non-financial indicators together with the performance of the Firm and the staff member’s business unit. The Firm monitors fixed to variable compensation to ensure SYSC 19G is adhered to with respect to Total Remuneration. Page 20
PILLARFOUR SECURITIES LLP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Quantitative Remuneration All firms are required to publicly disclose certain quantitative information in relation to the levels of remuneration awarded. As an SNI firm and in accordance with MIFIDPRU 8.6.8, PillarFour is required to disclose the total amount of remuneration awarded to all staff, split into fixed and variable remuneration. For the performance year ending 31 December 2024: Total variable remuneration awarded £147,111 Total remuneration awarded £1 47,111
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