Company No:
Contents
| DIRECTORS | Katherine Victoria Blacklock (Appointed 30 April 2025) |
| Conor Joseph Byrne (Resigned 30 April 2025) | |
| Philippe Alain Léon Cieutat (Appointed 03 May 2024) | |
| Sarah Jane Deaves (Resigned 30 April 2025) | |
| Jean-Francis Dusch (Resigned 03 May 2024) | |
| Alastair Graham Hunter (Resigned 30 April 2025) | |
| Penny Ann Lovell (Appointed 30 April 2025) | |
| Hervé Ordioni (Resigned 08 July 2024) | |
| Mark James Robertson | |
| Cynthia Fanny Renée Tobiano (Appointed 08 July 2024) |
| REGISTERED OFFICE | 4 Carlton Gardens |
| London | |
| SW1Y 5AA | |
| United Kingdom |
| COMPANY NUMBER | 12040098 (England and Wales) |
| AUDITOR | Dixon Wilson Audit Services LLP |
| Statutory Auditor | |
| 22 Chancery Lane | |
| London | |
| WC2A 1LS |
The directors present their Strategic Report for the financial year ended 31 December 2024.
REVIEW OF THE BUSINESS
The business continues to grow assets under management (AuM) and assets under advice (AuA) as the group's core proposition builds on a successful 2023. The Group has a total of £1.1bn AuA/AuM as at 31 December 2024. The Group has seen strong organic growth with keen interest across all service lines. The Group has continued to develop its footprint in South Africa by establishing an FCSA regulated entity to support the services for clients within the region. Furthermore, the progress made in the offering to US persons also underlines the decision to register with the SEC in 2022. Significant new mandates and a strong pipeline of new business continues to offer a robust outlook for the Group as it looks to expand its client base and service offering in 2025. Revenue for 2024 was £5,840,154 (2023: £4,359,456) and EBITDA a profit of £541,333 (2023: loss of £487,631).
Service Offering
In 2024 the group continued to build new discretionary and advisory assets in a sustainable manner, with new opportunities presenting themselves globally as the extension of Hottinger Group services came to fruition in new regions.
Business conduct
The group has continued to maintain excellent service levels to all clients, ensuring the team operates with integrity and probity and has received positive client feedback. In support of this, all staff undertook updated online courses related to conduct and integrity as part of the annual undertakings under the FCA's SMCR regulations. As part of our ongoing commitment to delivering fair outcomes for our customers, we have carefully reviewed and assessed our approach to Consumer Duty in line with the regulatory framework set out by the FCA. Consumer Duty is central to our values, ensuring that we put the interests of our customers at the heart of our business.
Staffing
The Group has developed a creative and collaborative environment and has targeted hires in its Compliance function as the multi-jurisdictional nature of the business increases the breadth of regulatory oversight. The company is keen to encourage personal development with staff members at every level actively undertaking additional qualifications as part of their vocational and academic development in 2025.
We believe communication and collaboration remain the cornerstone for a bespoke financial service to our clients. By maintaining a clear and transparent working environment the health and wellbeing of our staff is also supported.
Technology
2024 saw the continuation of the implementation of the Expersoft Portfolio Management System as the critical hub of the group, providing clients with the key service of consolidated reporting. The Group has been developing straight-through processing so that trades from multiple custodians can be executed simultaneously. The Group is completely cloud-based using Microsoft Azure, Egnyte file structure and an 8x8-based telephone system that will provide the potential for more flexible working in the future.
System enhancements to the efficiency of wealth management capability will continue to benefit all clients as well as reduce the administrative strain on the group.
Group Growth
2024 has continued the momentum from 2023 with key projects already providing opportunities to enhance and grow the business. Plans are being made to accelerate growth further through backing from Edmond de Rothschild (Suisse) SA, and staff hiring in key areas to ensure that a strong platform for growth is achieved. Income in 2024 was consistent with a positive outlook for financial markets and strong performance from risk assets. The team continued to add equity exposure as earnings forecasts improved during the period as well as ensuring the portfolios were prepared for increased levels of volatility in risk assets as valuations in certain sectors and regions became stretched.
KEY PERFORMANCE INDICATORS ('KPIS')
The company generates revenues principally as a percentage of the value of assets under management.
| 2024 | 2023 | ||
| £ | £ | ||
| Assets under management | 1,099,000,000 | 1,048,000,000 | |
| Revenue | 5,840,154 | 4,359,456 | |
| EBITDA | 541,333 | (487,631) |
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks to the group are:
- A fall in markets could result in a reduction in the value of funds under management, on which the group's income is principally based.
- Any failures in operating controls could lead to reputational damage, withdrawal of funds, compensation, penalties and potentially authorisations to carry on regulated activities being revoked.
Approved by the Board of Directors and signed on its behalf by:
|
Penny Ann Lovell
Director |
The directors present their annual report on the affairs of the company and the group, together with the financial statements and auditors’ report, for the financial year ended 31 December 2024.
PRINCIPAL ACTIVITIES
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The group's principal financial instruments consist of financial assets and liabilities such as cash at bank, trade debtors and trade creditors. These arise directly from its operations.
Credit risk
Investments of cash surpluses are made through reputable banks with suitably high credit ratings. Receivables are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Liquidity risk
The group manages its cash to maximise interest income whilst maintaining sufficient liquid resources to meet the operating needs of its business.
Interest rate risk
The group makes use of its business reserve account to minimise short to medium term cash flow interest rate risk.
Foreign currency risk
The principal foreign currency exposure arises from revenues received in foreign currencies.
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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(Appointed 30 April 2025) |
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(Resigned 30 April 2025) |
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(Appointed 03 May 2024) |
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(Resigned 30 April 2025) |
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(Resigned 03 May 2024) |
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(Resigned 30 April 2025) |
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(Appointed 30 April 2025) |
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(Resigned 08 July 2024) |
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(Appointed 08 July 2024) |
DIRECTORS' INDEMNITIES
AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Approved by the Board of Directors and signed on its behalf by:
|
Penny Ann Lovell
Director |
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors 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 company and group and of the profit or loss of the group for that financial period.
In preparing these financial statements, the directors 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; and
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company and group's transactions and disclose with reasonable accuracy at any time the financial position of the company and group and enable them to ensure that the financial statements comply with the Companies Act 2006. The directors are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Hottinger Group Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the financial year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Company Statement of Cash Flows, the accounting policies, and the related notes 1 to 19, 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 of Hottinger Group Limited (the ‘company’):
* Give a true and fair view of the state of the company and group's affairs as at 31 December 2024 and of the group's loss for the financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.
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 group 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
* The information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
* The Strategic Report and Directors' Report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report. 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
* The parent company financial statements are not in agreement with the accounting records and returns; or
* Certain disclosures of directors’ remuneration specified by law are not made; or
* We have not received all the information and explanations we require for our audit;
Responsibilities of directors
As explained more fully in the Directors’ Responsibilities Statement, the directors 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 directors 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 directors are responsible for assessing the group and parent 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 directors either intend to liquidate the group and parent company or to cease operations, or have no realistic alternative but to do so.
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 our procedures are capable of detecting irregularities, including fraud is detailed below.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the group by considering, amongst other things, the sector in which it operates, and considered the risk of acts by the company and the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the assessed level of risk, but recognised that 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.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, UK Company Law, UK tax legislation, FCA Regulations.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, enquiries of component auditors, consideration of the firm’s FCA scope of permission.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Statutory Auditor
London
WC2A 1LS
| Note | 2024 | 2023 | ||
| £ | £ | |||
| Turnover | 2 |
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| Administrative expenses | (
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| Operating loss | (
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| Other non-operating income |
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| Loss before interest and taxation | (353,192) | (1,362,525) | ||
| Interest receivable and similar income |
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| Interest payable and similar expenses | (
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| Loss before taxation | 3 | (
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| Tax on loss | 7 | (
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| Loss for the financial year | (
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| Other items of other comprehensive income | (
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| Other comprehensive loss | (306,210) | (117,069) | ||
| Total comprehensive loss | (
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| Total comprehensive loss attributable to: | ||||
| Owners of the parent | (
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| Non-controlling interests | (
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| (874,264) | (1,446,376) |
| Note | 2024 | 2023 | ||
| £ | £ | |||
| Fixed assets | ||||
| Intangible assets | 9 |
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| Tangible assets | 10 |
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| Investments | 11 |
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| 6,489,036 | 7,246,791 | |||
| Current assets | ||||
| Debtors | 12 |
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| Cash at bank and in hand | 13 |
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| 3,082,238 | 2,125,801 | |||
| Creditors: amounts falling due within one year | 14 | (
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| Net current liabilities | (1,982,110) | (1,905,473) | ||
| Total assets less current liabilities | 4,506,926 | 5,341,318 | ||
| Provision for liabilities | (
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| Net assets | 4,477,818 | 5,338,577 | ||
| Capital and reserves | 16 | |||
| Called-up share capital |
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| Translation reserve | (
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| Other reserves |
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| Profit and loss account | (
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| Equity attributable to owners of the parent company | 4,430,089 | 5,298,541 | ||
| Non-controlling interests |
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| 4,477,818 | 5,338,577 |
The financial statements of Hottinger Group Limited (registered number:
|
Penny Ann Lovell
Director |
| Note | 2024 | 2023 | ||
| £ | £ | |||
| Fixed assets | ||||
| Investments | 11 |
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| 7,882,302 | 7,881,596 | |||
| Current assets | ||||
| Debtors | 12 |
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| Cash at bank and in hand | 13 |
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| 1,749,905 | 1,374,240 | |||
| Creditors: amounts falling due within one year | 14 | (
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(
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| Net current liabilities | (9,091,854) | (8,685,349) | ||
| Total assets less current liabilities | (1,209,552) | (803,753) | ||
| Net liabilities | (1,209,552) | (803,753) | ||
| Capital and reserves | 16 | |||
| Called-up share capital |
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| Other reserves |
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| Profit and loss account | (
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| Total shareholders' deficit | (1,209,552) | (803,753) |
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss of the parent company was £406,804 (2023: loss £352,789).
The financial statements of Hottinger Group Limited (registered number:
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Penny Ann Lovell
Director |
| Called-up share capital | Translation reserve | Other reserves | Profit and loss account | Equity attributable to owners of parent company | Non-controlling interests | Total | |||||||
| £ | £ | £ | £ | £ | £ | £ | |||||||
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| Called-up share capital | Other reserves | Profit and loss account | Total | ||||
| £ | £ | £ | £ | ||||
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| 2024 | 2023 | ||
| £ | £ | ||
| Operating loss | (
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| Adjustment for: | |||
| Share-based payment expense |
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| Depreciation and amortisation |
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| Profit on sale of plant and equipment |
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| Foreign exchange (gains) / losses | (
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| Operating cash flows before movement in working capital |
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| (Increase)/decrease in debtors | (
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| Increase in creditors |
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| Cash generated by operations | (
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| Income taxes received/(paid) |
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| Net cash flows from operating activities | (
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| Cash flows from investing activities | |||
| Proceeds from sale of plant and machinery |
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| Purchase of plant and machinery | (
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| Interest received |
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| Purchase of intangible assets | (
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| Acquistion of subsidiaries | (39,733) | 0 | |
| Cash acquired with business combinations | 0 | 0 | |
| Net cash flows from investing activities | (
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| Cash flows from financing activities | |||
| Proceeds on issue of shares |
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| Interest paid | (9) | (7,731) | |
| Proceeds from borrowing draw downs | 717,014 | 0 | |
| Net cash flows from financing activities |
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| Cash at bank and in hand at end of year |
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| 2024 | 2023 | ||
| £ | £ | ||
| Operating loss | (
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| Adjustment for: | |||
| Share-based payment expense |
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| Foreign currency translation | (
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| Operating cash flows before movement in working capital | (
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| Cash generated by operations | (
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| Net cash flows from operating activities | (
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| Acquisition of subsidiaries | 0 | 0 | |
| Advances of loans to subsidiaries | (714,719) | 0 | |
| Repayment of loans by subsidiaries | 478,321 | 335,242 | |
| Net cash flows from investing activities | (
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| Cash flows from financing activities | |||
| Proceeds from borrowing draw downs | 717,014 | 0 | |
| Net cash flows from financing activities |
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| Reconciliation to cash at bank and in hand: | |||
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The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Hottinger Group Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the group's registered office is 4 Carlton Gardens, London, SW1Y 5AA, United Kingdom.
The principal activities are set out in the Strategic Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
The financial statements have been prepared on a going concern basis. The company's liabilities are £7 million owed to its immediate subsidiary for the transfer up of shareholdings in other group entities, and £3.7m due to a shareholder. The liability to the subsidiary was cleared by way of a distribution after the end of the period. The amounts due to the shareholder were converted to equity following the end of the period.
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024. The company made a loss after tax for the financial year of £406,804 (2023 - loss of £352,789).
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired during the year are included in the Profit and Loss Account from the effective date of acquisition. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries are eliminated in full.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
The results of subsidiaries that have functional currencies other than GBP are consolidated by translating closing assets and liabilities at the prevailing exchange rate at the end of the period, and translating profits and losses for the period at the average exchange rate for the period. Exchange differences arising on translating to the presentation currency are recognised in other comprehensive income.
Turnover is recognised in the period in which services are provided.
The group operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
| Goodwill |
|
| Computer software |
|
| Other intangible assets |
|
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
| Leasehold improvements | depreciated over the life of the lease |
| Plant and machinery etc. |
|
The group as lessee
Investments in equity shares where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method.
Dividends on equity securities are recognised in income when receivable.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument.
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 group after deducting all of its liabilities.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Loans and borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Breakdown by business class
An analysis of the group's turnover by class of business is set out below.
| 2024 | 2023 | ||
| £ | £ | ||
| Investment management | 4,366,227 | 3,741,898 | |
| Credit services | 142,774 | 256,034 | |
| Other financial and investment advisory | 1,331,153 | 361,524 | |
| 5,840,154 | 4,359,456 |
.
An analysis of the group's turnover is as follows:
| 2024 | 2023 | ||
| £ | £ | ||
| Rendering of services |
|
|
Loss before taxation is stated after charging/(crediting):
| 2024 | 2023 | ||
| £ | £ | ||
| Depreciation of tangible fixed assets (note 10) |
|
|
|
| Amortisation of intangible assets (note 9) |
|
|
|
| Operating lease rentals |
|
|
|
| Foreign exchange gains | (
|
(
|
|
| Gain on disposal of fixed assets |
|
(
|
An analysis of the auditor's remuneration is as follows:
| 2024 | 2023 | ||
| £ | £ | ||
| Fees payable to the group’s auditor and its associates for the audit of the group's annual financial statements: | 20,010 | 16,000 | |
| Fees payable to the group’s auditor and its associates for other services: | |||
| Audit of the accounts of subsidiaries | 27,347 | 24,280 | |
| Total audit fees |
|
|
|
| Taxation compliance services |
|
|
|
| Other services |
|
|
|
| Total non-audit fees |
|
|
|
| Group | Group | Company | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Number | Number | Number | Number | ||||
| The average monthly number of employees (including directors) was: | |||||||
| Administration and support |
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| Operations |
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|
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| Management |
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|
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Their aggregate remuneration comprised:
| Group | Group | Company | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||||
| £ | £ | £ | £ | ||||
| Wages and salaries |
|
|
|
|
|||
| Social security costs |
|
|
|
|
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| Other retirement benefit costs |
|
|
|
|
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| Other compensation costs | |||||||
| Short term employee benefits |
|
|
|
|
|||
| Other employee costs | 23,207 | 40,106 | 0 | 0 | |||
| 3,485,005 | 2,895,849 | 425,015 | 357,912 |
Staff provide services across the group. Staff numbers and costs above for the company are for those staff who have in part provided services to the company.
| 2024 | 2023 | ||
| £ | £ | ||
| Directors' emoluments |
|
|
|
| Company contributions to money purchase pension schemes |
|
|
|
| 1,063,879 | 781,500 |
| 2024 | 2023 | ||
| Number | Number | ||
| Members of a money purchase pension scheme |
|
|
Remuneration of the highest paid director
| 2024 | 2023 | ||
| £ | £ | ||
| Director's emoluments | 345,667 | 382,500 |
| 2024 | 2023 | ||
| £ | £ | ||
| Current tax on loss | |||
| UK corporation tax |
|
(
|
|
| Foreign tax |
|
|
|
| Adjustments in respect of prior years | |||
| UK corporation tax |
|
|
|
| Total current tax |
|
(
|
|
| Deferred tax | |||
| Origination and reversal of timing differences |
|
(
|
|
| Total deferred tax |
|
(
|
|
| Total tax on loss |
|
(
|
The tax assessed for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK:
| 2024 | 2023 | ||
| £ | £ | ||
| Loss before taxation | (528,325) | (1,500,259) | |
| Tax on loss at standard UK corporation tax rate of 25% (2023: 23.52%) | (
|
(
|
|
| Effects of: | |||
| Expenses not deductible for tax purposes |
|
|
|
| Change in unrecognised deferred tax assets |
|
|
|
| Higher tax rates on overseas earnings | (
|
|
|
| Deferred tax credit relating to changes in tax rates | 0 | (8,107) | |
| Tax decrease arising from group relief | 0 | (1,222) | |
| Total tax charge/(credit) for year | 39,729 | (170,952) |
At 31 December 2024 deferred tax assets amounted to £150,876, deferred tax liabilities amounted to £29,108 (2023: deferred tax assets £164,238, deferred tax liability £2,741).
Equity-settled share-based payment schemes
Details of the share options outstanding during the financial year are as follows:
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Weighted Average | Weighted Average | ||||
| Number of share options | Average exercise price (£) | Number of share options | Average exercise price (£) | ||
| Outstanding at beginning of period |
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| Granted during the period |
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|
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| Outstanding at the end of the period |
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| Exercisable at the end of the period |
|
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Group
| Goodwill | Computer software | Other intangible assets | Total | ||||
| £ | £ | £ | £ | ||||
| Cost | |||||||
| At 01 January 2024 |
|
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| Additions |
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| At 31 December 2024 |
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| Accumulated amortisation | |||||||
| At 01 January 2024 |
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| Charge for the financial year |
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| At 31 December 2024 |
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| Net book value | |||||||
| At 31 December 2024 |
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| At 31 December 2023 |
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Group
| Leasehold improve- ments |
Plant and machinery etc. | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 01 January 2024 |
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| Additions |
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| At 31 December 2024 |
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| Accumulated depreciation | |||||
| At 01 January 2024 |
|
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| Charge for the financial year |
|
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||
| At 31 December 2024 |
|
|
|
||
| Net book value | |||||
| At 31 December 2024 | 3,620 | 28,539 | 32,159 | ||
| At 31 December 2023 | 2,140 | 17,377 | 19,517 |
Group
| Other investments | Total | ||
| £ | £ | ||
| Cost or valuation before impairment | |||
| At 01 January 2024 |
|
|
|
| Movement in fair value |
|
|
|
| At 31 December 2024 |
|
|
|
| Carrying value at 31 December 2024 |
|
|
|
| Carrying value at 31 December 2023 |
|
|
Company
| Investments in subsidiaries | Total | ||
| £ | £ | ||
| Cost or valuation before impairment | |||
| At 01 January 2024 |
|
|
|
| Additions |
|
|
|
| At 31 December 2024 |
|
|
|
| Provisions for impairment | |||
| At 01 January 2024 |
|
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|
| At 31 December 2024 |
|
|
|
| Carrying value at 31 December 2024 |
|
|
|
| Carrying value at 31 December 2023 |
|
|
Investments in subsidiaries
The following were subsidiary undertakings of the company:
| Name of entity | Registered office | Principal activity | Class of shares |
Ownership 31.12.2024 |
Ownership 31.12.2023 |
Held |
| Hottinger Capital Partners Limited | 4 Carlton Gardens, London | Credit advice | Ordinary | 100.00% | 100.00% | Direct |
| Hottinger & Co. Limited | 4 Carlton Gardens, London | Investment management | Ordinary | 97.50% | 97.50% | Indirect |
| Hottinger Private Office Limited | 4 Carlton Gardens, London | Investment advisory | Ordinary | 100.00% | 100.00% | Direct |
| Archco Limited | 93 Mill Street, Qormi, Malta | Former intermediate holding company | Ordinary | 100.00% | 100.00% | Direct |
| Archimedes Private Office (Suisse) Sarl | 17 rue de Candolle, 1211 Geneve, Switzerland | Investment advice and management | Ordinary | 100.00% | 100.00% | Direct |
| Charms Limited | 5-9 Main Street, Gibraltar | Holding company | Ordinary | 100.00% | 100.00% | Direct |
| Hottinger Art Limited | 4 Carlton Gardens, London | Dormant | Ordinary | 90.00% | 90.00% | Direct |
| Hottinger Family Office Limited | 15 Pembroke Street, Dublin, Ireland | Dormant | Ordinary | 100.00% | 100.00% | Direct |
| Hottinger & Co SA Pty Ltd | 22 Kindoon Road, Bryanston, South Africa | Ordinary | 100.00% | 0.00% | Indirect |
| Group | Group | Company | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||||
| £ | £ | £ | £ | ||||
| Trade debtors |
|
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|
|
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| Amounts owed by own subsidiaries (note 18) |
|
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|
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| VAT recoverable |
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| Corporation tax |
|
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|
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| Other debtors |
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| Prepayments and accrued income |
|
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|
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| Deferred tax asset |
|
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|
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|
|
|
|
|
| Group | Group | Company | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||||
| £ | £ | £ | £ | ||||
| Cash at bank and in hand |
|
|
|
|
| Group | Group | Company | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||||
| £ | £ | £ | £ | ||||
| Trade creditors |
|
|
|
|
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| Amounts owed to own subsidiaries (note 18) |
|
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|
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| Shareholder loans (note 18) |
|
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|
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| Corporation tax |
|
|
|
|
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| Payroll taxes payable |
|
|
|
|
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| VAT |
|
|
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|
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| Accruals and deferred income |
|
|
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|
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| Other creditors |
|
|
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|
|||
|
|
|
|
|
| Group | Group | Company | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||||
| £ | £ | £ | £ | ||||
| At the beginning of financial year |
|
(
|
|
|
|||
| (Charged)/credited to the Profit and Loss Account | (
|
|
|
|
|||
| At the end of financial year |
|
|
|
|
The deferred taxation balance is made up as follows:
| Group | Group | Company | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||||
| £ | £ | £ | £ | ||||
| Accelerated capital allowances | (
|
(
|
|
|
|||
| Tax losses carry forward |
|
|
|
|
|||
| Other timing differences | (
|
|
|
|
|||
| Revaluation of investments | (
|
|
|
|
|||
|
|
|
|
|
| 2024 | 2023 | ||
| £ | £ | ||
| Allotted, called-up and fully-paid | |||
|
|
|
|
|
|
|
|
|
|
| 100.00 | 100.00 | ||
| Presented as follows: | |||
| Called-up share capital presented as equity | 100 | 100 |
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| Group | Group | ||
| 2024 | 2023 | ||
| £ | £ | ||
| within one year |
|
|
|
| between one and five years |
|
|
|
|
|
|
The group has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the group of companies of which the group is a wholly owned member.
The directors of the group are deemed to be the key personnel of the group. Remuneration is disclosed in the Directors' remuneration note.
At 31 December 2024 the company was due £367,604 (2023 - £130,206) from a non-wholly owned subsidiary, Hottinger & Co Ltd, interest free and on demand. During the year the subsidiary recharged expenses and made payments on behalf of the company of £477,321 (2023 - £335,243) . During 2024 the company also advanced a further £714,749.
The company has borrowed £1,441,364 (2023 - £1,371,639) and EUR 2,771,736 (2023 - EUR 1,798,169 ) from a shareholder, Edmond de Rothschild (Suisse) SA. The nominal interest rate on these amounts is 5%. The loans do not have a fixed repayment date and are intended as long term capital, but may be demanded on six months notice if Edmond de Rothschild (Suisse) SA ceases to be a shareholder in the company.
During the year the company was not controlled by any individual party. On 18 February 2025 Edmond de Rothschild (Suisse) SA agreed to increase its shareholding in Hottinger Group Limited from 42.5% to 70%. The transaction was conditional on regulatory approval, which was granted by the FCA in April 2025. Following further share allotments, as of the date of approval of these financial statements, Edmond de Rothschild (Suisse) SA's shareholding has increased to 88.21%.