The Directors present the strategic report for the year ended 30 June 2025.
TIML Limited trades as Tacit Investment Management and throughout this report references to Tacit are interchangeable.
Fair review of the business
TIML Limited continues to be regulated by the Financial Conduct Authority (FCA) as a Small and Non-Interconnected (SNI) firm.
The principal activity of Tacit since its inception is the investment management of portfolios for private individuals and a small number of corporate entities. As the Directors reported last year, the strategic objective for Tacit is to evolve from a MiFID II investment firm into a fully integrated wealth manager. In furtherance of this objective, the firm submitted and successfully progressed a Variation of Permissions (VoP) application with the FCA to expand its advisory permissions, including the provision of pensions advice, non-investment insurance mediation, and broader financial planning services. This expansion of its permitted activities has enabled Tacit to develop a holistic wealth management proposition for UK investors which combines financial advice on pensions and retirement planning, tax efficient investment, and protection and inheritance planning, with the investment of their assets.
The proposition to, predominantly retail, UK investors has been developed in line with the principles of the FCA’s Consumer Duty and the Directors are confident that its products and services are fully aligned with FCA expectations for target market, price and value, customer understanding and customer support, and that its policies and processes for meeting the particular requirements of vulnerable clients are appropriate and effective. Tacit currently has two advisors qualified to provide pensions and insurance advice working alongside the Investment Directors. The firm attained Charter status with the Chartered Institute for Securities and Investment (CISI) and joined the Consumer Duty Alliance in the course of the year, both of which demonstrate the firm’s strong commitment to professionalism and excellence in the service of its clients.
The new financial advice component of Tacit’s business generated only modest fee revenue in the year but the business plan envisages this contribution rising steadily over the next years to become a significant driver of revenue.
Business plan
The Directors are focused on driving efficiency across business operations by using technology effectively. During the year, the firm has been developing Intelligent Office (IO) as the core client database, which replaced Xplan. IO is capable of providing the data and analysis required to support the firm’s reporting requirements within the parameters expected by the FCA under the Consumer Duty framework. In addition, Tacit has launched a digital client portal which not only gives clients access to a wider range of information on their accounts, but is also interactive, allowing Tacit and clients to exchange documents securely and providing a platform for client surveys and data on client engagement with Tacit publications and webinars. With these foundations in place, and with the rapidly evolving analytical and functional capability of AI embedded in systems, the focus of the firm will be to further enhance client experience and enrich client engagement, including with educational material to build clients’ understanding of and confidence in dealing with the range of issues that affect their wealth management. The Directors firmly believe that strong investment management, tailored advice, and a hands-on service approach aided by technological engagement will provide strong outcomes for clients moving forward.
The foundations are now fully in place on which to build a full-service private wealth management business, targeted at higher net worth UK investors. The Directors are alert to bringing into the business experienced and like-minded advisers with established client books that fit the Tacit profile.
Operational Risk
Operational risks arise from the people, processes, and systems in use within TIML Limited, or from external events. In the course of the year, the Firm implemented and developed Intelligent Office (IO) as its client database and operating system. The analytical capability of IO will greatly enhance the Firm’s range and depth of management information (MI) and will enhance the client reporting experience and interactive communication with Tacit. The use of IO will eliminate use of data extracts to provide monitoring and control analysis and will constitute a single data warehouse and analytical hub.
Regulatory environment
The FCA’s current focus areas for wealth management include, ongoing financial crime Anti-Money Laundering/Counter Terrorist Financing (AML/CTF) control effectiveness, embedding and evidencing Consumer Duty compliance, robust systems and controls (including third-party and outsourcing risk governance), board engagement and governance, vulnerable customer support and timely and accurate regulatory reporting.
The regulatory environment for UK MiFID II investment firms is undergoing significant transformation as the FCA and HM Treasury continue to shape a post-Brexit regulatory framework tailored to the UK market. During this reporting year, the FCA has reinforced its expectations for robust governance, effective systems and controls, and a strong culture of compliance, all of which are codified in the Senior Management Arrangements, Systems and Controls (SYSC) sourcebook and the onshore MiFID II regime. These requirements are designed to ensure that UK MiFID investment firms maintain the highest standards of organisational resilience, risk management, and client protection.
The FCA’s supervisory priorities for MiFID firms continue to focus on the delivery of good consumer outcomes, as mandated by the Consumer Duty, and on the prevention of financial crime. Firms are expected to demonstrate that their products and services deliver fair value, that client communications are clear and not misleading, and that vulnerable customers are identified and supported appropriately. The FCA is actively reviewing how firms embed these expectations into their governance, product design, and ongoing client interactions.
Technological environment
TIML Limited relies heavily on digital technology and believes in making the best use of technology to remain competitive and to provide an excellent service to clients. The Directors are very conscious of the risks of cybercrime and data breaches. Tacit employs a professional IT support firm to advise on security measures and to maintain system protection software on all devices.
Tacit has incorporated the UK Government’s 10 Steps to Cyber Security into our day-to-day management of the firm, and is Cyber Essentials certified.
Economic environment
The economic backdrop is dominated by US policy, in particular the trade tariffs implemented by President Trump and their frequent use as political leverage against specific countries. Neither a jump in US inflation nor a drop in global growth, both of which were thought to be the inevitable consequences of the tariff policy, has yet materialized. This may be a matter of timing, and it remains to be seen if significant disruption to international trade has been triggered. Market substitution and favourable fossil energy pricing may compensate for some of the tariff impacts, at least in the short term.
Another factor which is widely expected to bring economic benefits and higher productivity gains is the rapid development and roll-out of artificial intelligence (AI) into virtually all dimensions of human activity. The extent of these anticipated benefits will become clearer as AI processing becomes widely embedded across industries and in the public sector also.
For Tacit, these factors are both risks to manage in the investment strategies the firm operates and opportunities also to drive positive returns for clients.
Political Environment
Internationally, the political climate has become more volatile than in recent decades and many of the norms of the post WWII international settlements are being fiercely contested and in instances overturned. One of the consequences of this is a dramatic return in Europe to defense spending on a scale not imaginable after the end of the Cold War and the harvesting of the so-called peace dividend. Often, technological advances have had their origin in the defense industry, and it is likely that the urgent need to prepare for defense in a world that is already infused with digital technology will generate new applications with benefits beyond the battlefield.
In the UK, the strain on government funding in an already over-borrowed economy is forcing a higher tax burden on both corporations and individuals. This is not a conducive environment for entrepreneurism and growth, but it has made tax planning and advice fundamental to UK investors even with moderate wealth. In this respect, the timing of Tacit’s expanded service range is timely.
Capital adequacy
As an SNI regulated firm, the company continues to be capitalised in excess of regulator-imposed minimum capital adequacy and liquidity requirements. The Firm's capital adequacy requirement is calculated based on three months’ contracted fixed costs. The Firm is well capitalised in excess of the FCA Investment Firms’ Prudential Regime (IFPR) capital and liquidity requirements.
Competitive environment, social and market forces
The company continues to operate in a competitive marketplace with many larger competitors focusing on asset growth rather than investment management as their primary objective. Consolidation and a focus on margin at the expense of the service and value-added to private investors is a helpful backdrop for Tacit to promote its personalised service and the consistent performance of its strategies over a fifteen-year run.
The Directors intend to continue to assess relevant opportunities to develop or expand the Firm’s activities, provided these are consistent with the company’s business strategy and direction.
The Company's key financial performance indicators during the year were as follows:
Unit 2025 2024
Turnover £ 2,327,513 2,146,995
Operating profit £ 682,414 793,877
Assets under management £ 346,370,872 321,342,492
Tacit’s principal activity is the investment management of (mostly) discretionary portfolios for private individuals and for some corporate entities in the form of pension funds. The Firm has a proven, clear and consistent approach to investment which focuses first on the preservation of investors’ capital and, for those investors willing and able to take a higher level of risk, to grow their wealth in absolute and real terms after fees. Tacit offers four core strategies in which investment risk is managed using the Growth/Stabiliser investment philosophy which Tacit has espoused consistently since its inception. These four strategies now have nearly fifteen complete years of public performance history. All four strategies have outperformed their respective CPI-Plus benchmarks and their respective peer groups as measured by the UK industry leader, Asset Risk Consultants (ARC).
Tacit is able to combine financial planning advice with the investment management of assets, thus offering clients a holistic wealth management service that takes account of the tax environment, the structures in which UK investors typically accumulate and hold their wealth (particularly pensions, ISAs and investment bonds) and the succession planning required to pass assets efficiently to other family members. This integrated wealth management service is targeted at higher net worth individuals and families and Tacit has been successful in attracting new clients in this bracket through the year, confirming the appeal of high quality personalised professional service, and the depth of market experience of the senior managers in Tacit. Over the year, the team has engaged with a small number of specialist tax and legal practices to provide wider services to clients where this is appropriate such as Family Investment Company planning and trust structures.
The first half of the year was dominated in the main by the US presidential election and a growing recognition that Donald Trump would win a second term. Mr Trump’s inaugural address set the scene for what has turned out to be an unconventional and idiosyncratic exercise of presidential power. An aggressive tariff strategy caused equity market to roil in the first months of the presidency and US bond markets were also at times volatile in the face of concern at the level of US borrowing, and with concerns that economic activity would slow and inflation rise as a consequence of the tariffs. By the final quarter of Tacit’s financial year, markets had steadied and embarked on an unexpectedly strong rise, not only in the US but in most of Europe and South East Asia. By the end of the financial year, Tacit strategies were at new highs and both the value of assets under management and the quarterly fees calculated shortly before the 30 June were at new records for the firm.
Total revenue for the year was £2.33m compared with £2.15m the previous year. At the pre-tax level, the profit was £680k, compared with £792k. As noted in the previous year’s Strategic Report, a notable increase in employment costs in the previous year was attributable to new hires and to a change in the remuneration of directors to salaries. There were no new hires in the year, and the cost of Directors’ salaries and other employment costs is now a baseline for comparison in future years. The contract with AJ Bell for custody and portfolio management services was renewed in the course of the year on more favorable terms and the benefit of this will be better reflected in subsequent years, as the new fee structure only came into force later in the financial year under review. Net Assets on the balance sheet declined marginally to £623k from £633k the previous year.
Investment outcomes and client retention
The four Tacit strategies performed well in absolute and relative terms when compared to the Asset Risk Consultants Private Client Indices. This was achieved by strictly adhering to the Growth/Stabiliser framework which underpins the Tacit Investment Philosophy as well as the ability to pivot away from more expensive US equity exposure meaningfully towards Asia and Europe where valuations are cheap when considered in the context of history. Liquidity was an important factor also as it allowed the team to manage exposures through the volatility which followed the announcement of tariffs by the US administration. All strategies provided positive returns after all costs, over the 12 months (the performance since inception on 30 September 2010 for each strategy is shown in brackets next to the 1-year return). Conservative +4.45% (+77.06%); Real Return +7.21% (+129.94%); Steady Growth +7.96% (+163.62%); Total Return +10.59% (+250.52%).
Section 172 Statement and engagement with stakeholders
The company is a discretionary investment management firm which depends on the trust and confidence of its
stakeholders to operate sustainably in the long term. It seeks to put its clients’ best interests first, invests in its
employees, supports the communities in which it operates and strives to generate sustainable profits for
shareholders.
The Directors of the company consider that they have acted in accordance with their duties codified in law, in
particular their duty to act in the way in which they consider, in good faith, would be most likely to promote the
success of the company for the benefit of its members as a whole, having regard to the stakeholders and matters set out in section 172(1) of the Companies Act 2006.
Clients
The company considers our clients to be one of the most important stakeholder groups of our business model. Tacit places the highest emphasis on personal service to each client and regularly reviews the processes by which we establish the individual needs of each client and respond to them with investment propositions and regular communications which meet their objectives and enable them to understand the basis on which our investment decisions are made.
Suppliers
The company recognises that key suppliers and outsourced service providers can have a material impact on the long-term success of the business and so incorporates the interests of these stakeholders when making strategic long-term decisions. The company believes that having due regard to the interests of these suppliers is a dynamic and ongoing process which requires thoughtful monitoring and assessment, and a willingness to engage with those suppliers to better understand their operating constraints and business development plans.
Employees
The company is committed to being a responsible employer and the Directors recognise that for our businesses to succeed, we need to manage our employees’ performance through mentoring and structured training, and develop and encourage talent, ensuring that we operate as efficiently as possible.
High standards of business conduct
Maintaining a high standard of business conduct when dealing with stakeholders such as regulatory bodies is vital for the company. The company is regulated by the FCA and the Directors are very aware of the need to keep up to date with industry regulations and best practice. The company recognises the importance of meeting its reporting obligations to the FCA and takes client confidentiality and data protection very seriously as set out in our privacy notice on our website which is reviewed regularly.
The community and the environment
In their decision making, the Directors need to have regard to the impact of the company’s operations on the community and environment. Wherever possible, the company encourages carbon friendly business practices as evidenced by giving all staff the ability to work from home if possible.
On behalf of the board
The Directors present their annual report and financial statements for the year ended 30 June 2025.
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
The results for the year are set out on page 13.
Ordinary dividends were paid amounting to £520,399. The Directors do not recommend payment of a final dividend.
Dividends declared after the year end and up to the date of approval of these financial statements totalled £163,951.
The business’s principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business's operations.
In respect of bank balances, the liquidity risk is managed by maintaining a sufficient cash reserve at the bank to allow for short term net cash outflows. The firm’s cash is held in accounts that pay a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk through the Terms & Conditions of our engagement with clients and professional advisers, and through the regular monitoring of amounts outstanding for both time and credit limits. Retail client fees are taken directly by the custodian from client accounts operated by the custodian, thus mitigating credit risk associated with this aspect of the business. Trade creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet liabilities when they fall due.
At all times the Directors must ensure that they meet the capital adequacy requirements stipulated by the Financial Conduct Authority, which must be reported periodically via the FCA Gateway.
There have been no material events affecting TIML Limited between the balance sheet date and the signing of the report.
Just Audit Limited has completed the sixth year of appointment and the Directors intend to appoint Just Audit Limited for a further year.
After making enquiries, the Directors have a firm expectation that the company has resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
We have audited the financial statements of TIML Ltd (the 'company') for the year ended 30 June 2025 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 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
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 Directors' Report for the financial year 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.
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 company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising 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, the Companies Act 2006 and UK tax legislation, and FCA regulation, recognising the regulated nature of the company's activities. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. 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. 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 the Directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
The company has no recognised gains or losses for the year other than the results above.
TIML Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 14 Hanover Square, London, W1S 1HN.
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 £.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
The financial statements of the company are consolidated in the financial statements of Tacit Holdings Limited. These consolidated financial statements are available from its registered office, 14 Hanover Square, London, W1S 1HN.
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 credited or charged to profit or loss.
In the application of the company’s accounting policies, the Directors are 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 preparation of the financial statements can require 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.
In the opinion of the Directors, there are no critical judgements that have a significant effect on amounts recognised in the financial statements.
An analysis of the company's turnover is as follows:
The average monthly number of persons (including Directors) employed by the company during the year was:
Their aggregate remuneration comprised:
2 Directors participated in the pension scheme during the year (2024: 2).
Directors are also remunerated by dividends paid by the parent company, Tacit Holdings Limited. Dividends paid to the Directors of TIML Limited and their spouses totalled £190,639 (2024: £459,358).
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:
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year ended 30 June 2025, the company paid £110,000 for consultancy services (2024: £82,500) to another company owned by a director and shareholder of the parent company, Tacit Holdings Limited. As at 30 June 2025, no amounts were owed to that company (2024: £500).
During the year amounts were advanced to a director as detailed in the table below. These amounts were interest free and repayable on demand.