Company registration number 10737610 (England and Wales)
PRESERVATION CAPITAL PARTNERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PRESERVATION CAPITAL PARTNERS LIMITED
COMPANY INFORMATION
Director
J S Aujla
Company number
10737610
Registered office
25 Golden Square
London
W1F 9LU
Auditor
TC Group
5th Floor
3 Dorset Rise
London
EC4Y 8EN
PRESERVATION CAPITAL PARTNERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
The following pages do not form part of the statutory financial statements
Detailed profit and loss statement
PRESERVATION CAPITAL PARTNERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The director presents the strategic report for the year ended 31 December 2024.

Principal activities and review of the business

The principal activity of Preservation Capital Partners Limited (the "company") is to provide investment management and advisory services to investment funds specialising in the financial services sector.

The company is authorised by the Financial Conduct Authority ("FCA"), having obtained its regulatory status on 25 September 2019.

The director considers the financial key performance indicators include turnover for the year at £17,670,373 (2023: £11,152,061) and profit before tax of £9,667,893 (2023: £4,205,680). The performance for the year is consistent with the strategy and expectation of the director, who is satisfied with the performance and financial position at the year end.

Principal risks and uncertainties

The company's approach to managing risks applicable to the financial instruments concerned is shown below.

Operational risk

Operational risk, inherent in all businesses, is the potential for financial and reputation loss arising from failures in internal controls, operational processes or systems that support them. It includes errors, omissions, disasters and deliberate acts such as fraud. The regulated environment in which the company operates imposes extensive reporting requirements and continuing self assessment and appraisal. Internal arrangements and processes are in place to continually re-evaluate as the company seeks to improve its operating efficiencies and these are considered to have been effective to date.

Credit risk
The director consider s that the key financial risk exposures faced by the company relate to counterparty credit risk and the need to maintain sufficient working capital. The director therefore attempts to minimise the risk through having clearly defined terms of business with counterparties and stringent credit control over transactions with them.

Liquidity risk
The director manages liquidity risk by ensuring that the company has sufficient cash resources to meet liabilities as they fall due without causing any undue financial strain on the business, whilst having regard to the regulatory requirements set out by the FCA. In order to achieve this, the director monitors the company's cash position on a regular basis to ensure that the company maintains adequate working capital.

Foreign currency risk
The company earns a significant portion of its revenue in Euros while maintaining a primarily sterling cost base. The director manages currency risk through hedging strategies like forward contracts, it mitigates risk, recognising gains or losses in the income statement.

Dependence on key technical personnel

The company's success is driven by its key technical staff in providing services to its target market. Therefore, the director consider s a key risk to be the loss of its key personnel and the retention of these individuals is a key objective of the company through having competitive remuneration policies.

Section 172 statement

The director of the company is also its sole shareholder. Underlying the decision making process of the company, the director consider s the impact on the c ompany’s employees and is mindful of how the c ompany’s business operations impact the community and environment. The director’s overarching responsibility is to maintain a reputation for high standards of business conduct and seek to build strong business relationships with suppliers, customers and other key counterparties.

T here were no key decisions made during the year that could impact potential interested parties of the company.

PRESERVATION CAPITAL PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
MIFIDPRU 8 remuneration disclosures

In accordance with the rules of the FCA, the c ompany has published information on its remuneration policy. Details of the company's MIFIDPRU 8 remuneration disclosures can be found on the company's website at https://preservationcapitalpartners.com/.

On behalf of the board

J S Aujla
Director
3 April 2025
PRESERVATION CAPITAL PARTNERS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,979,948 (202 3: £7 00,000).

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

J S Aujla
Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is 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 company will continue in business.

The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director individually has taken all the necessary steps that they ought to have taken as director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

PRESERVATION CAPITAL PARTNERS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Future developments and going concern

The director has considered forecast cash flows and the nature of the company’s operations and has reasonable expectations that the company will have the financial resources to meet its obligations for the foreseeable future being at least 12 months from the signing of the financial statements. Therefore, the director will continue to adopt the going concern basis in preparing the annual financial statements. Further details regarding the adoption of the going concern basis can be found in note 1.2.

On behalf of the board
J S Aujla
Director
3 April 2025
PRESERVATION CAPITAL PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PRESERVATION CAPITAL PARTNERS LIMITED
- 5 -
Opinion

We have audited the financial statements of Preservation Capital Partners Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director 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 director is 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 our audit:

- the information given in the strategic report and the director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

PRESERVATION CAPITAL PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PRESERVATION CAPITAL PARTNERS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the director's r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of director's remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 auditor's 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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102, the Companies Act 2006), the Financial Conduct Authority ("FCA") and the relevant direct and indirect tax compliance regulation in the United Kingdom.

- We understood how the company is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation including FCA policies and reviewing regulatory returns filed with the FCA.

- We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested completeness of income through substantive tests performed, analytical review procedures and cut off tests on the revenue recognised.

PRESERVATION CAPITAL PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PRESERVATION CAPITAL PARTNERS LIMITED
- 7 -

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance and review of legal and professional expenses.

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's 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 member, for our audit work, for this report, or for the opinions we have formed.

Michael Berry FCA CTA
Senior Statutory Auditor
For and on behalf of TC Group
4 April 2025
Statutory Auditor
5th Floor
3 Dorset Rise
London
EC4Y 8EN
PRESERVATION CAPITAL PARTNERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
2
17,670,373
11,152,061
Administrative expenses
(8,451,203)
(6,964,025)
Other operating income
207,276
-
0
Operating profit
3
9,426,446
4,188,036
Investment income
241,447
17,644
Profit before taxation
9,667,893
4,205,680
Tax on profit
5
(2,471,572)
(1,008,083)
Profit for the financial year
7,196,321
3,197,597

The income statement has been prepared on the basis that all operations are continuing operations.

PRESERVATION CAPITAL PARTNERS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
6
993,913
1,416,365
Investments
7
8,427
1,357,876
1,002,340
2,774,241
Current assets
Trade and other receivables
8
1,383,712
732,246
Cash and cash equivalents
10,608,375
4,268,164
11,992,087
5,000,410
Current liabilities
9
(2,957,746)
(2,869,343)
Net current assets
9,034,341
2,131,067
Total assets less current liabilities
10,036,681
4,905,308
Provisions for liabilities
Provisions
10
44,000
28,000
Deferred tax liability
11
68,000
169,000
(112,000)
(197,000)
Net assets
9,924,681
4,708,308
Equity
Called up share capital
13
50,000
50,000
Retained earnings
9,874,681
4,658,308
Total equity
9,924,681
4,708,308
The financial statements were approved and signed by the director and authorised for issue on 3 April 2025
J S Aujla
Director
Company Registration No. 10737610
PRESERVATION CAPITAL PARTNERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
50,000
2,160,711
2,210,711
Year ended 31 December 2023:
Profit and total comprehensive income
-
3,197,597
3,197,597
Dividends
-
(700,000)
(700,000)
Balance at 31 December 2023
50,000
4,658,308
4,708,308
Year ended 31 December 2024:
Profit and total comprehensive income
-
7,196,321
7,196,321
Dividends
-
(1,979,948)
(1,979,948)
Balance at 31 December 2024
50,000
9,874,681
9,924,681
PRESERVATION CAPITAL PARTNERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
9,873,110
4,838,865
Income taxes paid
(2,279,726)
(196,683)
Net cash inflow from operating activities
7,593,384
4,642,182
Investing activities
Proceeds from disposal of intangibles
144
-
0
Purchase of property, plant and equipment
(12,322)
(53,110)
Proceeds from disposal of property, plant and equipment
24,150
-
0
Proceeds from disposal of subsidiaries
(8,427)
-
0
Proceeds from disposal of investments
157,038
(1,357,876)
Loans issued
(876,093)
-
0
Interest received
241,447
17,644
Net cash used in investing activities
(474,063)
(1,393,342)
Financing activities
Dividends paid
(779,110)
(700,000)
Net cash used in financing activities
(779,110)
(700,000)
Net increase in cash and cash equivalents
6,340,211
2,548,840
Cash and cash equivalents at beginning of year
4,268,164
1,719,324
Cash and cash equivalents at end of year
10,608,375
4,268,164
PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Preservation Capital Partners Limited ("the company") is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is 25 Golden Square, London, W1F 9LU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in pounds sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest pounds sterling.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Th erefore, t he director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for investment advisory services provided in the normal course of business, net of VAT. Revenue is recognised as earned when, and to the extent that, the c ompany obtains the right to consideration under contractual arrangements.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Where the outcome cannot be estimated reliably, no revenue is recognised.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Over the term of the lease
Fixtures and fittings
20% straight line
Computers
20% straight line
Motor vehicles
20% reducing balance
Artwork
2% straight line
1.5
Non-current investments

Investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the statement of comprehensive income.

Investments represent equity instruments that are not publicly traded and whose fair value cannot be measured reliably and therefore are measured at cost less impairment.

PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets which include deposits held at call with banks and money market funds.

1.8
Financial instruments

The company applies the provisions of Section 11 ‘Basic Financial Instruments’ to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

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 and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets 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 the statement of comprehensive income.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

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

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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.

1.10
Taxation

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 income statement 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.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that 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 reporting end date, 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, with any unwinding of the discount recognised as a finance cost in the statement of comprehensive income in the period in which it arises.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to the statement of comprehensive income on a straight line basis over the term of the relevant lease.

1.15
Foreign exchange

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 the statement of comprehensive income.

2
Revenue
2024
2023
£
£
Revenue analysed by class of business
Investment management and advisory fees
17,670,373
11,152,061
2024
2023
£
£
Revenue analysed by geographical market
UK and Channel Islands
17,670,373
11,152,061
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,500
14,500
Depreciation of owned property, plant and equipment
410,624
417,611
Profit on disposal of intangible assets
(144)
-
Operating lease charges
425,939
589,252
4
Employees

The average monthly number of persons (including the company's director) employed by the company during the year was:

2024
2023
Number
Number
Operation and administration
13
12
PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,597,580
4,078,594
Social security costs
619,210
552,656
Pension costs
27,577
44,091
5,244,367
4,675,341

Remuneration paid to the director during the year totalled £750,000 (202 3: £819,076).

5
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,520,000
1,080,200
Adjustments in respect of prior periods
52,572
18,883
Total current tax
2,572,572
1,099,083
Deferred tax
Origination and reversal of timing differences
(101,000)
(91,000)
Total tax charge
2,471,572
1,008,083

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
9,667,893
4,205,680
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
2,416,973
988,335
Tax effect of expenses that are not deductible in determining taxable profit
14,980
8,102
Permanent capital allowances in excess of depreciation
-
0
(209)
Other permanent differences
(12,953)
(4,838)
Under/(over) provided in prior years
52,572
18,883
Deferred tax adjustments in respect of prior years
-
0
(2,190)
Taxation charge for the year
2,471,572
1,008,083
PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
6
Property, plant and equipment
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Artwork
Total
£
£
£
£
£
£
Cost
At 1 January 2024
1,960,292
1,382
44,244
143,333
64,037
2,213,288
Additions
-
0
-
0
12,322
-
0
-
0
12,322
Disposals
(24,294)
-
0
(14,648)
-
0
-
0
(38,942)
At 31 December 2024
1,935,998
1,382
41,918
143,333
64,037
2,186,668
Depreciation and impairment
At 1 January 2024
702,217
1,382
28,782
62,604
1,938
796,923
Depreciation charged in the year
386,882
-
0
6,317
16,147
1,278
410,624
Eliminated in respect of disposals
(2,429)
-
0
(12,363)
-
0
-
0
(14,792)
At 31 December 2024
1,086,670
1,382
22,736
78,751
3,216
1,192,755
Carrying amount
At 31 December 2024
849,328
-
0
19,182
64,582
60,821
993,913
At 31 December 2023
1,258,075
-
0
15,462
80,729
62,099
1,416,365
7
Fixed asset investments
2024
2023
£
£
Investments in subsidiaries
8,427
-
0
Unlisted investments
-
0
1,357,876
8,427
1,357,876
PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Fixed asset investments
(Continued)
- 18 -
Movements in non-current investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2024
-
1,357,876
1,357,876
Additions
8,427
-
8,427
Disposals
-
(1,357,876)
(1,357,876)
At 31 December 2024
8,427
-
8,427
Carrying amount
At 31 December 2024
8,427
-
8,427
At 31 December 2023
-
1,357,876
1,357,876

During the year the company incorporated a wholly owned overseas subsidiary, Preservation Capital Partners (Italy) S.R.L which has not yet commenced any operational or trading activities. The entities registered office is Milano (MI), Via Manzoni 38, CAP 20121.

8
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Other receivables
1,060,055
240,040
Prepayments and accrued income
323,657
232,741
1,383,712
472,781
2024
2023
Amounts falling due after more than one year:
£
£
Other receivables
-
0
259,465
Total debtors
1,383,712
732,246

In the prior year, other receivables over one year consisted of premises deposits.

PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
9
Current liabilities
2024
2023
£
£
Trade payables
218,409
50,672
Corporation tax
1,373,046
1,080,200
Other taxation and social security
1,171,415
1,063,085
Other payables
111,153
174,480
Accruals and deferred income
83,723
500,906
2,957,746
2,869,343
10
Provisions for liabilities
2024
2023
£
£
Premises reinstatement cost
44,000
28,000
Movements on provisions:
Premises reinstatement cost
£
At 1 January 2024
28,000
Additional provisions in the year
16,000
At 31 December 2024
44,000

The dilapidation provision represents the estimated cost to fulfill the company's obligations present under its property lease agreement.

11
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
68,000
169,000
PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Liability at 1 January 2024
169,000
Credit to profit or loss
(101,000)
Liability at 31 December 2024
68,000

The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.

12
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit in respect of defined contribution schemes
27,577
44,091

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the year end there was £5,030 (2023: £8,956) outstanding for payment.

13
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
50,000 Ordinary shares of £1 each
50,000
50,000
14
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
425,534
841,630
Between two and five years
574,670
1,076,822
1,000,204
1,918,452
PRESERVATION CAPITAL PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
15
Directors' transactions

Dividends totalling £1,979,948 (2023: £700,000) were paid in the year in respect of shares held by the company's director. These were paid by way of a cash payment of £779,110 and the transfer of investments with a market value of £1,200,838.

At the end of the year the director owed the company £841,459 in respect of a loan issued to the director during the year. Interest on this loan is charged at 2.25%, totalling £18,213 for the year ended 31 December 2024. Furthermore, at the end of the year the director owed the company £34,634 (2023: £6,634 owed to the director) in respect of expenses paid on behalf of the director.

16
Ultimate controlling party

The ultimate controlling party of the company is its sole shareholder and director.

17
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
7,196,321
3,197,597
Adjustments for:
Taxation charged
2,471,572
1,008,083
Investment income
(241,447)
(17,644)
Gain on disposal of intangible assets
(144)
-
Depreciation and impairment of property, plant and equipment
410,624
417,611
Increase in provisions
16,000
16,000
Movements in working capital:
Decrease/(increase) in trade and other receivables
224,627
(302,912)
(Decrease)/increase in trade and other payables
(204,443)
520,130
Cash generated from operations
9,873,110
4,838,865
18
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
4,268,164
6,340,211
10,608,375
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