The director presents the strategic report for the year ended 31 December 2024.
Islandbridge Group Limited (“Islandbridge Group” or “Company”) is a financial services holding company, holding 100% of the issued share capital in Islandbridge Capital Limited (together, the “Group”).
Islandbridge Capital Limited (‘’Islandbridge’’ or ‘’Subsidiary’’) is the main trading entity of the Group.
Islandbridge is a London-based investment manager and multi-family office. The business has evolved considerably since its inception over 16 years ago. Today, it has a global reach, reflecting its client base in private equity, technology, and property. The business model is aligned with clients to meet their need for expert and independent advice.
Islandbridge's clients are primarily highly successful entrepreneurs and their families. These clients demand that their capital and structures are managed by an experienced team with strong values and a long-term perspective. They also place high importance on outstanding financial strategy and implementation – which means not only generating strong investment returns, but also executing thoughtful planning and management, joined with a deep understanding of purpose and goals.
2024 Review
The firm enjoyed strong growth in 2024, which accelerated into year-end with the addition of new long-term mandates. A supportive market and economic environment contributed to strong investment returns. The Public Markets team launched the Earthrise Strategy, focusing on leading companies in technology, healthcare, and carbon transition.
There was a significant increase in activity for the Private Markets team, both in deal size and volume. The team have become a partner of choice for technology entrepreneurs with existing private investment portfolios seeking more structure and focus. Key to this success is their ability to help clients define disciplined investment principles, provide access to Islandbridge’s extensive network, and share insights from well-invested existing portfolios.
During the year, the firm heightened its focus on technology by implementing a new architecture across operations. This initiative enabled Islandbridge to become more tech-driven, enhancing capabilities in reporting, insights, compliance, client engagement, and data-driven decision-making. There was also increased, safe adoption of Artificial Intelligence, allowing teams to deliver higher levels of client service performance.
Into 2025, the team is actively re-underwriting the thesis behind portfolios in response to the shifting geopolitical landscape and rapid technological developments. It remains an incredibly dynamic period. Islandbridge will continue to convene like-minded individuals, experts, and industry leaders to navigate current market conditions. However, its core principles ensure a long-term and patient approach in the endeavour to protect and grow clients’ capital.
Impact
Despite the backdrop of global conflict, geopolitical tensions, and accelerating climate change, Islandbridge remained steadfast in supporting its clients. It focused on utilising philanthropy as a powerful tool for positive change, ensuring that clients’ values were deeply embedded in the purpose of their capital. The firm’s efforts in creating and managing philanthropic vehicles supported meaningful solutions to the world’s pressing issues.
Additionally, Islandbridge increased its external communications to highlight key environmental and societal challenges. By leveraging multiple channels, it engaged in meaningful dialogues with changemakers, convened groups around critical issues, and shared insights to advocate for impactful change. This hands-on approach also included actively allocating capital, particularly to climate-related initiatives.
As always, the team extends a sincere thank you to its clients, managers, and colleagues for a year of support and progress. Despite the challenges facing the planet, Islandbridge remains “all-in” to lead by example and honour the responsibility entrusted by its exceptional clients.
Govenance risk
The Firm is governed by a board of directors consisting of one executive director and two non-executive directors. The board members meet on a regular basis and hold board meetings where the performance of the Firm is evaluated against budgets, forecasts and the expectations of the board.
The Firm oversees and manages its risks through a combination of a compliance manual, routine monitoring of policies and procedures, a business continuity plan, an annual independent audit and reporting process, and the use of an independent UK compliance firm. The Firm's policies, procedures and financial controls are regularly reviewed and revised as needed.
Market risk
Market risk is the risk that the value of, or income arising from, the Firm's assets and liabilities varies as a result of changes in the market price of financial assets, changes in exchange rates or changes in interest rates. The Firm is subject to market risk as this could impact the fees charged by lslandbridge which are directly linked to the market value of client assets. The Firm regularly evaluates the sensitivity of income against market risk.
Credit risk
Credit risk refers to the potential risk that customers fail to meet their obligations as they fall due. lslandbridge is exposed to the credit risk of its bankers and receivables from its clients. lslandbridge considers these risks on a continuous basis but does not believe that it is significant. The Firm regularly reviews the credit rating of institutions where cash is held on deposit.
Liquidity risk
The Firm's liquidity policy is to maintain sufficient liquid resources to cover cash flow imbalances and fluctuations in fees received/receivable. The Firm maintains sufficient cash balances with its banking partners to cover liquidity risk. Furthermore, the Firm continuously monitors income and expenditure levels and adjusts plans and forecasts accordingly.
Other risks
Other risks the Firm considered included:
Business risk: failure of business plan, resulting in losses or reduced income.
Concentration risk: whether overly dependent on any customer or group in terms of income or credit risk.
Residual risk: any other material risk specific to the Firm.
The Firm completed its 2024 Internal Capital and Risk Assessment Process (“ICARA”) which did not identify any additional capital requirements.
The Firm’s key financial and other performance indicators during the year were as follows:
| Unit | 2024 | 2023 |
Turnover | £ | 3,367,520 | 2,720,628 |
Turnover Growth | % | 24 | 11 |
Profit Before Tax | £ | 736,897 | 620,256 |
Net Assets | £ | 1,654,878 | 1,430,815 |
Net Assets Growth | % | 16 | (5) |
The director is aware of his duty under s.172 of the Companies Act 2006 to act in the way which he considers, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:
the likely consequences of any decision in the long term;
the interests of the Group’s employees;
the need to foster the Group’s business relationships with suppliers, customers and others;
the impact of the Group’s operations on the community and the environment;
the desirability of the Group maintaining a reputation for high standards of business conduct; and
the need to act fairly as between members of the Group.
(“the s.172 matters”)
The director of the Group has sought to balance the needs of its members with the s.172 matters throughout the year, ensuring that the Group’s reputation for high standards of conduct are maintained and through strong relationships with employees and partners. The director of the Group has a duty to promote the success of the Group, and this relies on smooth operations and the support and joint efforts of management. Thus, effective communication and interaction are indispensable in the Group’s business operations.
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £298,725.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The auditor, Mercer & Hole LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
We have audited the financial statements of Islandbridge Group Limited (the 'Company') and its subsidiary (the 'Group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 Group's 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 director with respect to going concern are described in the relevant sections of this report.
Other information
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 report 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.
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 Parent Company and the industry in which it operates and considered the risk of acts by the Parent Company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006, FCA regulations and tax legislation.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure.
Audit procedures performed by the engagement team included:
discussions with management, including considerations of known or suspected instances of non-compliance with laws and regulations and fraud;
gaining an understanding of management's controls designed to prevent and detect irregularities; and
identifying and testing journal entries.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all 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.
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.
The notes on pages 16 to 31 form part of these financial statements.
The notes on pages 16 to 31 form part of these financial statements.
The notes on pages 16 to 31 form part of these financial statements.
As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The Company’s profit for the year was £199,368 (2023: £565,839).
The notes on pages 16 to 31 form part of these financial statements.
The notes on pages 16 to 31 form part of these financial statements.
The notes on pages 16 to 31 form part of these financial statements.
Islandbridge Group Limited (“the Company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 18/19 Abemarle Street, London W1S 4HR.
The Group consists of Islandbridge Group Limited and its Subsidiary.
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 sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the Company Islandbridge Group Limited together with the entity controlled by the Company (its Subsidiary).
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of the Subsidiary to bring the accounting policies used into line with those used by the Group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The Subsidiary is consolidated in the Group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
Turnover represents amounts chargeable in respect of professional services provided to clients net of VAT.
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, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the Company financial statements, the investment in the Subsidiary is initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The Group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
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 simultaneously.
Basic financial assets, which include debtors, 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 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the Group 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 Group.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of material unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the average of a series of accepted valuation methodologies. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Where share options are granted under 'exit only' agreement, and the directors do not consider an exit event to be probable, no charge is recognised. At the point where the directors believe an exit event to be probable, a share option charge is recognised straight line over the period to the date of expected exit.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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 profit or loss.
In the application of the Group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the average of a series of accepted valuation methodologies. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
Where share options are granted under 'exit only' agreement, and the directors do not consider an exit event to be probable, no charge is recognised. At the point where the directors believe an exit event to be probable, a share option charge is recognised straight line over the period to the date of expected exit.
An analysis of the Group's turnover is as follows:
Their aggregate remuneration comprised:
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:
Details of the Company's subsidiary at 31 December 2024 are as follows:
Details of joint ventures at 31 December 2024 are as follows:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
In June 2024, the Group established an Enterprise Management Incentive Scheme. Under the terms of the scheme, certain employee(s) of the Company's subsidiary were granted options in the Company, exercisable upon a transaction event. Management estimate this to occur in 3 years from the date of issue and therefore the options are treating as vesting over this period.
The Group has entered into various foreign exchange hedging transactions during the year. At the year end the Group had outstanding forward rate contracts for the principal sum of $782,980 (2023: $972,000), due to mature at various contract rates. At 31 December 2024, there was a liability at a fair value of £18,805 (2023: £11,327) arising from these transactions.
At the reporting end date the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the Group entered into the following transactions with related parties:
The Group was charged legal fees of £23,950 (2023: £38,110) by a partnership controlled by a director of the Subsidiary.
The Group was charged legal fees of £15,000 (2023: £15,000) by a director of the Subsidiary.
The Group received fees of £30,606 (2023: £38,965) from a person related to a director in the year.
The Group received fees of £92,728 (2023: £90,157) from a Director.
At the balance sheet date, the amount of £256 (2023: £1,528) was owed to the Group by a director.
The Group owes £50,000 (2023: £50,000) to members of key management. This amount is interest free and repayable on demand.
The Group paid dividends of £298,725 (2023: £394,800) to the director.