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Registered number: 12448314
EIGHTCAP GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
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EIGHTCAP GROUP LTD
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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EIGHTCAP GROUP LTD
CONTENTS
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Independent Auditors' Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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EIGHTCAP GROUP LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2025
The principal activity of Eightcap Group Ltd (the Company) is the execution of FX and CFD trading offered to retail and professional clients via an on-line trading platform. As an FCA regulated entity, the Company generates income through trading volumes from trades executed by clients.
In the period to 30 June 2025, the Company made a profit after tax of £638,355 (2024: loss of £107,957) and its net assets increased to £2,346,228 (2024: £1,707,873). The performance reflected clients' on-boarding from late February 2024. The Board believes the level of capitalisation is appropriate for the size of the firm at this stage of our development.
Principal risks and uncertainties
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Operational Risks
The Firm maintains a risk register detailing operational risks and mitigating actions / controls. This is reviewed by the Board during the year and updated whenever necessary. The principal operating risk is reliance on third parties for provision of IT services including the on-line trading platform. This risk is mitigated by a detailed service level agreement which will be reviewed and monitored by the Board to ensure the IT infrastructure remains sound and fit for purpose.
Credit Risk
Credit risk is the risk of loss to the Firm due to failure of a client or counterparty. Currently the only credit risk is cash at bank which is held at a Tier 1 bank and all banks are reviewed and approved prior to any funds being lodged there.
Market Risk
The Firm operates as a Matched Principal broker and does not hold market risk as all trades executed by clients are automatically hedged on a back-to-back basis with our liquidity provider. This trading infrastructure is managed by in-house experienced market professionals.
Regulatory Risk
The Group maintains resources in excess of regulatory capital in its regulated businesses as required by the FCA as well as closely managing strict compliance with all regulations set out by the FCA.
Financial key performance indicators
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Financial performance is reported to the board on a regular basis and the Board benchmarks actual performance with projected KPI's such as monthly profit before tax and net assets.
Other key performance indicators
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In addition to the financial key performance indicators, the directors also monitor a range of non-financial measures. These include headcount, client satisfaction, and employee training completion.
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EIGHTCAP GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
Directors' statement of compliance with duty to promote the success of the Company
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The Directors believe they have acted in accordance with requirements in section 172 of the UK Companies Act 2006 with regard to promoting the success of the company, specifically:
∙The Board have recruited experienced and capable staff to implement the Firms business plan going forward.
∙The Board have project managed a successful application for FCA authorisation which was granted in December 2020.
∙The Board have built relationships with partners and providers to give the Firm a solid base to progress and become fully operational.
The Directors of the Company are aware of the requirement to act in the way they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole. In considering this duty the Directors considers the following stakeholders:
Head Office
The Director has regular meetings with the Head office to align business objectives, operation, compliance and collaboration.
Clients
The Company's client base ranges from large institutional clients to professional clients. The Director prioritises compliance to ensure the funds of relevant clients are protected, whilst ensuring each client's best interest are served in accordance with their risk appetite.
Suppliers
The Company has various key supplier relationships which work more as a partnership to ensure the smooth running of the business.
The Environment
The Company recognizes climate change is one of the greatest challenges of our time and is committed to taking action to reduce, and eventually eliminate, emissions from our operations. We are committed to minimising our environmental footprint through sustainable technology practices, cloud-native infrastructure, and energy-efficient operations.
∙By embracing energy efficient products, data centres and server usage, as well as reducing physical resource use, and continuously optimising our systems, we aim to lower emissions and support a more sustainable digital economy.
∙Going virtual where possible and creating a more sustainable travel program.
∙Developing an Environmental Policy to reduce, reuse, recycle and recover across all global offices.
As a fintech business, our waste footprint is naturally low since we do not produce physical goods. While our waste's negative impact is minor, we proactively participate in our office's annual waste audit to achieve the best possible scores.
We work with vendors to recover and recycle our e-waste such as desktops, laptops, servers, headsets, keyboards, mouses, docking stations and monitors. Equipment is tested and inspected to assess the equipment’s working condition for either recycling or donating.
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EIGHTCAP GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
This report was approved by the board and signed on its behalf.
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EIGHTCAP GROUP LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2025
The Directors present their report and the financial statements for the period ended 30 June 2025.
Directors' responsibilities statement
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The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements 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 Directors are 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
The principal activity of the Company is a forex broker offering contracts for differences (CFD's).
The profit for the period, after taxation, amounted to £638,355 (2024 - loss £107,957).
No dividends were proposed or paid during the period. The directors do not recommend payment of a final dividend.
The Directors who served during the period were:
Focus remains on growth and expansion, innovation, and unlocking long-term shareholder value.
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EIGHTCAP GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2025
Disclosure of information to auditors
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Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
During the year, Hillier Hopkins LLP resigned as auditors and BKL Audit LLP were appointed in their stead.
Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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EIGHTCAP GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EIGHTCAP GROUP LTD
We have audited the financial statements of Eightcap Group Ltd (the 'Company') for the period ended 30 June 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 30 June 2025 and of its profit for the period 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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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 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.
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EIGHTCAP GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EIGHTCAP GROUP LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Opinion on other matters prescribed by the Companies Act 2006
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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 period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or 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, 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 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
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As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 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 Company or to cease operations, or have no realistic alternative but to do so.
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EIGHTCAP GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EIGHTCAP GROUP LTD (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiring of management around actual and potential litigation and claims;
∙Enquiring of entity staff in finance and compliance functions to identify any instances of non-compliance with laws and regulations;
∙Reviewing meetings of minutes of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
∙Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
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EIGHTCAP GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EIGHTCAP GROUP LTD (CONTINUED)
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Wedge FCA (Senior Statutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
15 October 2025
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EIGHTCAP GROUP LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2025
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12 months ended
29 February
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Interest receivable and similar income
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Profit/(loss) for the financial period
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There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.
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There was no other comprehensive income for 2025 (2024:£NIL).
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The notes on pages 14 to 27 form part of these financial statements.
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EIGHTCAP GROUP LTD
REGISTERED NUMBER: 12448314
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 27 form part of these financial statements.
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EIGHTCAP GROUP LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2025
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the period
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Total comprehensive income for the period
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The notes on pages 14 to 27 form part of these financial statements.
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EIGHTCAP GROUP LTD
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2025
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12 months ended
29 February
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Cash flows from operating activities
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Profit/(loss) for the financial period
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Depreciation of tangible assets
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Decrease/(increase) in debtors
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(Increase)/decrease in amounts owed by group companies
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(Decrease) in amounts owed to group companies
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash from investing activities
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Net (decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of period
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Cash and cash equivalents at the end of period
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Cash and cash equivalents at the end of period comprise:
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The notes on pages 14 to 27 form part of these financial statements.
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
Eightcap Group Limited is a company incorporated in the UK, England & Wales.
The registered office address and principal place of business is 40 Gracechurch Street, London, England,
EC3V OBT.
The principal activity of the company is a forex broker offering contracts for difference (CFD's).
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements and will be able to meet its debts as they fall due.
Based on management's assessment of the Company's financial position and resources, the Company is dependent on the support of the parent. The parent has confirmed its intention to support the Company for a period of at least 12 months from the date of approval of these financial statements. The directors are therefore confident in the Company's ability to continue to operate for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
The Company makes markets for customers trading in Margin FX spot and Contract for Difference markets. Trading revenue represents related brokerage activities for establishing these markets, including spread; commission and funding charges made to clients in respect of the opening, holding and closing of contracts.
Transactions are recorded on the trade date and open client and hedging positions are carried at fair market value, with positions marked to market daily and resulting gains and losses arising recognised in trading revenue together with gains and losses realised on client positions that have closed.
Trading revenue
Trading revenue is reported gross of introductory broker commissions and is the net of amounts collected on behalf of client trading activity. Trading revenue is recognised when it is probable that economic benefits associated with the transaction will flow to the Company and can be reliably measured.
Trading expenses
Trading expenses represents costs that are directly associated with client trading activity and funding transaction.
Introductory broker commissions, along with other fees are charged to the income statement when the associated revenue is recognised and are disclosed as a deduction from total revenue in deriving net operating income.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the EIR applicable. The EIR is the rate which exactly discounts estimated future cash receipts over the expected life of the financial asset to that asset’s net carrying amount. Interest income on segregated client funds is disclosed within revenue and therefore operating profit as this is consistent with the nature of the Group’s operations and product disclosure statements.
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
2.Accounting policies (continued)
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Finance costs are charged to profit in the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income 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 Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The company only enters into basic financial instruments that result in the recognition of financial assets and liabilities, like trade and other debtors and creditors, and loans to and from related parties.
(i) Financial assets
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Management has identified the following critical accounting policies for which significant judgements, estimates and assumptions are made:
Deferred tax asset
The company has recognised a deferred tax asset in respect of tax losses carried forward. The recognition of this asset is based on management’s assessment that it is probable future taxable profits will be available against which the losses can be utilised. This assessment involves significant judgment and estimation, particularly in relation to the timing and certainty of future profitability.
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
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An analysis of turnover by class of business is as follows:
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12 months ended
29 February
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Transfer pricing agreement
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Analysis of turnover by country of destination:
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12 months ended
29 February
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The operating profit/(loss) is stated after charging:
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12 months ended
29 February
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
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During the period, the Company obtained the following services from the Company's auditors:
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12 months ended
29 February
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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Fees payable to the Company's auditors in respect of:
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Audit-related assurance services
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Taxation compliance services
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Staff costs, including Directors' remuneration, were as follows:
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12 months ended
29 February
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Cost of defined contribution scheme
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The average monthly number of employees, including the Directors, during the period was as follows:
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12 months ended
29 February
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
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12 months ended
29 February
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Company contributions to defined contribution pension schemes
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During the period retirement benefits were accruing to 2 Directors (2024 - 2) in respect of defined contribution pension schemes.
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The highest paid Director received remuneration of £241,667 (2024 - £150,000).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £7,250 (2024 - £4,500).
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12 months ended
29 February
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Other interest receivable
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
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12 months ended
29 February
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Losses and other deductions
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Factors affecting tax charge for the period/year
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The tax assessed for the period/year is lower than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 24%). The differences are explained below:
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12 months ended
29 February
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Profit/(loss) on ordinary activities before tax
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Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 24%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for period/year in excess of depreciation
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Utilisation of tax losses
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Short-term timing difference leading to an increase (decrease) in taxation
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Unrelieved tax losses carried forward
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Total tax charge for the period/year
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
10.Taxation (continued)
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Factors that may affect future tax charges
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The Company has carried forward tax losses of £683,039 that are available to offset against future trading profits.
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Charge for the period on owned assets
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
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Amounts owed by group undertakings
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Prepayments and accrued income
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Included within amounts owed by group undertakings are amounts held by the Company under a Title Transfer Collateral Arrangement in accordance with FCA regulations. The corresponding creditor owed back to the Company's clients amounted to £5,682,825 (2024: £Nil) and is included within other creditors.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Included within other creditors are amounts of £5,682,825 (2024: £Nil) owed back to the Company's customers, with respect to the assets held by the Company under a Title Transfer Collateral Arrangement in accordance with the FCA regulations. The corresponding assets are included within amounts owed by group undertakings in debtors.
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Tax losses carried forward
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Allotted, called up and fully paid
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100 (2024 - 100) Ordinary Shares shares of A$53,000.00 each
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Profit and loss account
Profit and loss account includes all current and prior year retained profits and losses less dividends paid.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those in the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £31,172 (2024: £27,585). There are no amounts payable to the fund at the reporting date (2024: £6,731).
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EIGHTCAP GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
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Commitments under operating leases
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At 30 June 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Related party transactions
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Where possible, the Company has taken advantage of the exemptions available under paragraph 33.1A of FRS 102 not to disclose transactions with other wholly-owned group undertakings.
The related party balances as at the period end and the transactions during the period were as follows:
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Amounts owed by (to) entities which share control of the company
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The immediate and ultimate parent undertaking is Eightcap Group Pty Ltd, a company incorporated in Australia.
There is no ultimate controlling party.
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