| REGISTERED NUMBER: |
| Unaudited Financial Statements for the Year Ended 31 May 2025 |
| for |
| REALTY CORPORATION LIMITED |
| REGISTERED NUMBER: |
| Unaudited Financial Statements for the Year Ended 31 May 2025 |
| for |
| REALTY CORPORATION LIMITED |
| REALTY CORPORATION LIMITED (REGISTERED NUMBER: 10757555) |
| Contents of the Financial Statements |
| for the Year Ended 31 May 2025 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 |
| Notes to the Financial Statements | 4 |
| REALTY CORPORATION LIMITED |
| Company Information |
| for the Year Ended 31 May 2025 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| ACCOUNTANTS: |
| 159 High Street |
| Barnet |
| Hertfordshire |
| EN5 5SU |
| REALTY CORPORATION LIMITED (REGISTERED NUMBER: 10757555) |
| Balance Sheet |
| 31 May 2025 |
| 2025 | 2024 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 4 |
| Investments | 5 |
| CURRENT ASSETS |
| Debtors | 6 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 7 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital |
| Share premium |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| The directors acknowledge their responsibilities for: |
| (a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
| (b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
| REALTY CORPORATION LIMITED (REGISTERED NUMBER: 10757555) |
| Balance Sheet - continued |
| 31 May 2025 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| REALTY CORPORATION LIMITED (REGISTERED NUMBER: 10757555) |
| Notes to the Financial Statements |
| for the Year Ended 31 May 2025 |
| 1. | STATUTORY INFORMATION |
| Realty Corporation Limited is a |
| Introduction |
| Realty Corporation Limited (Realty, the "Firm") is a MIFID Investment Manager authorised and regulated by the Financial Conduct Authority (FCA). The Firm is required to comply with the disclosure requirements under the Investment Firms Prudential Regime (IFPR), which is set out in the FCA Handbook MIFIDPRU 8. |
| This disclosure has been prepared in accordance with MIFIDPRU 8.6 (Remuneration) of the FCA Handbook. As the Firm qualifies as a Small and Non-Interconnected (SNI) firm, the other sections of MIFIDPRU 8 do not apply. The disclosure therefore focuses solely on the Firm's remuneration policies and practices, proportionate to its size, internal organisation, and the nature, scope and complexity of its activities. |
| For the purpose of prudential regulations, the Firm is classified as a SNI (small and non-interconnected) firm and is subject to the basic requirements. The Firm is required to provide a level of detail in its disclosures that is appropriate to its size and internal organisation, and to the nature, scope, and complexity of our activities. |
| The Firm confirms that it remains classified as a Small and Non-Interconnected (SNI) firm under MIFIDPRU 1.2.3R. This classification is based on meeting all relevant thresholds, including total balance sheet assets below £100 million and total client assets under management below £1.2 billion. The Firm applies the principle of proportionality in determining the scope and depth of this disclosure. |
| Remuneration |
| The Firm is required to comply with the MIFIDPRU Remuneration Code under IFPR, which aims to ensure that the Firm has risk-focused remuneration policies that are consistent with and promote sound and effective risk management in the long-term interests of the Firm and its clients, and does not expose the Firm or its clients to excessive risk. |
| Our approach and objectives |
| The Firm has formulated its approach in remuneration policy and practices with reference to the guidance set out by the FCA. The policy is applied in line with SYSC 19G (MIFIDPRU Remuneration Code), which applies proportionately to SNI firms. The Firm considers the appropriate balance between fixed and variable remuneration as well as the constraints in place to avoid a conflict of interest between staff incentives and the best interests of clients. |
| The objectives of the Firm's remuneration policy are to: |
| - promote sound and effective risk management in the long-term interests of the Firm and its clients |
| - limit risk-taking and avoid conflicts of interest |
| - ensure alignment between risk and individual reward |
| - supporting positive behaviours and healthy firm culture |
| - encourage responsible business conduct |
| - discourage behaviours that can lead to misconduct and poor client outcomes |
| - align employees' interests with the Firm's long-term strategy and objectives |
| - be gender neutral, in line with the Equality Act 2010. |
| Governance and decision-making procedures |
| The Board of Directors of Realty Corporation Ltd (the "Board") is responsible for overseeing the implementation of our remuneration policy and ensuring our compliance with the MIFIDPRU Remuneration Code. |
| The Board of the Firm consists of the three most-senior professionals, all of whom are directors of the Firm or of affiliate entities. |
| One role of the Board of the Firm is to ensure the extent of the variable remuneration at the Firm cannot affect the Firm's ability to ensure a sound capital base. The Board of the Firm is responsible for overseeing the performance management process: reviewing and approving the remuneration policy, variable remuneration pool and caps, eligibility for participation in variable remuneration schemes, as well as the approval of variable remuneration awarded to individuals. |
| The Firm assesses its staff members under its performance management process on an ongoing basis with an annual performance assessment outcome being used as a contributing factor in the determination of remuneration. |
| The remuneration of senior staff in risk management and compliance functions is directly overseen by the Board of the Firm. Any remuneration to staff with control functions is awarded according to objectives linked to their functions and remains independent from the business units they oversee. |
| REALTY CORPORATION LIMITED (REGISTERED NUMBER: 10757555) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2025 |
| No variable remuneration is awarded to members of the Board who do not perform any executive function in the Firm. |
| The Firm's remuneration policies and practices are developed in consultation with our external consultants, Bovill, and are reviewed regularly for best practice. |
| Key characteristics of remuneration policies and practices |
| All staff receive fixed remuneration in form of base salary; and are considered for discretionary variable remuneration in form of bonus, where eligible. |
| Fixed remuneration |
| Base Salary |
| The Firm reviews the base salary of its staff members on an annual basis by considering factors such as market information and individual performance. |
| Variable remuneration |
| Bonus |
| The Firm's bonus scheme is a discretionary reward scheme based on the performance of the Firm as a whole. All bonuses are dependent on the Firm's overall financial result to ensure a sound capital base. The bonus pool will take into consideration all types of current and future financial and nonfinancial risks and be determined on a sliding scale, using a monthly salary multiplier as a guide. |
| On an individual level, the scheme is designed and linked to both financial and non-financial criteria, rewarding behaviours that promote positive non-financial outcomes for the Firm and limiting potential behaviours contrary to the Firm's values. |
| The bonus pool and individual bonuses will be adjusted as deemed necessary by the Board of the Firm |
| in consideration of the following: |
| - Any compliance or regulatory issues that have occurred or are under investigations internally or externally |
| - Any persistent or significant deviations in either financial or non-financial KPIs |
| - Any conduct related matters that have occurred or are under investigation internally or externally |
| - Any matters that adversely impact client outcomes |
| - Any other factors that may publicly impact the Firm's brand or reputation |
| Variable remuneration is not guaranteed, except in very limited circumstances such as sign-on, buyout, or retention awards as described below, and always subject to the Firm maintaining a sound capital base. |
| Control function staff are independent from the business units they oversee and are remunerated in line with the achievement of the objectives of their functions. The determination of the level of remuneration of such staff is independent of the performance of the business areas they oversee. |
| Dividends |
| The Firm has discretion to distribute dividends from time to time to the Firm's shareholders and the extent of which is dependent on the Firm's financial results to assure the Firm's capital base. Any decision to declare dividends is made in accordance with the Companies Act 2006 and the Firm's duties to maintain solvency and adequate capital resources. |
| Guarantees |
| The Firm is aware that non-performance-related variable remuneration, such as sign-on bonus, buyout award, retention award and severance pay, may weaken the alignment of risk and award. |
| From time to time, as circumstances warrant, the Firm will award the following remuneration: |
| - Sign-on bonus: only in the first year of service for newly hired material risk takers where the Firm has a strong capital base |
| - Buy-out award: involves the Firm compensating a new employee for reduced, revoked, or cancelled variable remuneration by the previous employer |
| - Retention award: dependent on a material risk taker remaining in role until the end of a restructuring or a wind-down of the Firm |
| - Severance pay: in case of early termination of the employment contract, the Firm retains the ability to make severance payments as long as they reflect the individual's performance over time and do not reward failure or misconduct. |
| Guaranteed variable remuneration is not part of the Firm's usual practice and is awarded only in exceptional cases consistent with regulatory expectations. |
| REALTY CORPORATION LIMITED (REGISTERED NUMBER: 10757555) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2025 |
| Quantitative disclosures |
| For the financial year ended 31 MAY 2025, the amount of remuneration awarded is as follows: |
| Total remuneration 445,610 |
| (a) Fixed remuneration 365,110 |
| (b) Variable remuneration 80,500 |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Tangible fixed assets |
| Plant and machinery etc | - |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| Financial instruments |
| Basic financial instruments are recognised at amortised cost. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Fixed asset investments |
| Fixed asset investments are measured at cost less impairment. |
| 3. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the year was |
| REALTY CORPORATION LIMITED (REGISTERED NUMBER: 10757555) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2025 |
| 4. | TANGIBLE FIXED ASSETS |
| Plant and |
| machinery |
| etc |
| £ |
| COST |
| At 1 June 2024 |
| Additions |
| At 31 May 2025 |
| DEPRECIATION |
| At 1 June 2024 |
| Charge for year |
| At 31 May 2025 |
| NET BOOK VALUE |
| At 31 May 2025 |
| At 31 May 2024 |
| 5. | FIXED ASSET INVESTMENTS |
| Shares in |
| group | Other |
| undertakings | investments | Totals |
| £ | £ | £ |
| COST |
| At 1 June 2024 | 805,623 |
| Additions | 19,000 |
| At 31 May 2025 | 824,623 |
| NET BOOK VALUE |
| At 31 May 2025 | 824,623 |
| At 31 May 2024 | 805,623 |
| 6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2025 | 2024 |
| £ | £ |
| Trade debtors |
| Other debtors |
| 7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2025 | 2024 |
| £ | £ |
| Trade creditors |
| Taxation and social security |
| Other creditors |
| 8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2025 | 2024 |
| £ | £ |
| Other creditors |
| REALTY CORPORATION LIMITED (REGISTERED NUMBER: 10757555) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 May 2025 |
| 8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
| 2025 | 2024 |
| £ | £ |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bounce Back Loan - Over 5 yrs | 1,097 | 4,692 |