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Registered number: 05717236
DIOMEDES CAPITAL LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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DIOMEDES CAPITAL LTD
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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DIOMEDES CAPITAL LTD
CONTENTS
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Independent Auditors' Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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DIOMEDES CAPITAL LTD
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The principal activity of the Group continued to be that of dealing in illiquid fixed income securities, trade claims, structured securities and private debt, on an agency and principal basis.
The directors are satisfied with the performance of the Group which has faced challenges in its profitability in the current year, but has closed the year with a satisfactory asset position.
Principal risks and uncertainties
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The principal risks and uncertainties facing the Group are the volatility of capital markets and hence its ability to source deals to generate revenues, as well as the timing of trades and the illiquid nature of the securities involved. In addition, the Group's reputation is important to the ongoing operation and success of the Group. The reputation of the Group would be affected by the actions of the Group, the underperformance of representatives acting on behalf of the Group and by non-materialised or failed trades.
Disclosure on Carbon Reporting Exemption
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In accordance with the relevant UK regulations, the company and its group have opted to utilize the large entity exemption for carbon and energy reporting. As the total estimated energy usage is below the threshold of 40,000 kWh for the reporting period, carbon and energy disclosures are not required within these financial statements. This exemption has been applied in alignment with the applicable statutory framework, which allows large entities to exclude detailed carbon reporting when energy usage falls below the stated threshold.
Financial key performance indicators
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Results for the year to 31 March 2025 have shown that:
Current assets have decreased by 53% (2024: increase by 126%)
Net assets have increased by 8% (2024: 17%)
The Group has achieved a gross profit margin of 7% (2024: 10%) and profit before tax of £2,248,504 (2024: £4,975,741).
Non-financial key performance indicators
During the year, the business did not face any customer complaints and the majority of its business activity was completed with repeated clients and counterparties. The Group prioritised strategic initiatives that would allow it to sustain its capital base and profitability in the medium-to-long term.
Directors' statement of compliance with duty to promote the success of the Group
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As the Board of Diomedes Capital Ltd, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the Group’s success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the Group and its stakeholders. This statement outlines the ways in which we as a Board address this responsibility.
Promoting the Group’s success for its members
Diomedes Capital Ltd was founded by C Amore and G Alabatchka in 2006 and the Group continues to be controlled and run by these two shareholders. The Group has consistently, over the past 15 years, provided employment, training and financial reward for its owners and employees. We aim to be the European leader in the trading of illiquid assets and the provision of investment services in the niche market of distressed debt.
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DIOMEDES CAPITAL LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Our client base values our discretion, ability to source securities and provide liquidity to investors, as well as value, trade and settle complex debt transactions in illiquid and distressed situations alike.
Our goals are to stabilise the Group’s revenues, maximise its ability to grow profits and market share whilst returning the highest possible value to the founding shareholders and those employees who are also shareholders, as well as inspire in the Group’s employees pride of working at the Group.
Engaging with stakeholders
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Our key stakeholders, and the ways in which we engage with them, are as follows:
Our sourcing, valuation, research, trading and settlement processes are deeply integrated, and the Group relies on narrowly specialised staff, most of them with a long tenure in the Group, to conduct these essential activities. These processes are efficiently executed with the heavy involvement of experienced internal and external compliance professionals and legal experts, including on specialist topics and distressed debt legal complexities.
We are renowned for our ability to deliver complex settlements of legally challenging transactions in a discrete way, and we cannot achieve this without our team. Recruitment and retention of staff is therefore a critical business activity. We help to engage with team members by:
• setting remuneration as a combination of market-level base salaries and performance-based compensation;
• providing training and career development support;
• ensuring that staff from each department are present and involved in significant decisions.
Our customers and suppliers
Our guiding principle in our servicing clients is best execution conducted in a smooth and efficient process. Our business model prioritises delivery of the agreed service, on optimal terms for the client. Our clients value our expertise in difficult distressed and illiquid situations and the efficiency and skill with which we resolve them and create value for our clients.
We have built and will maintain a reputation for excellence, thought leadership, and transparency in our interaction with clients and counterparties.
Our community
We are a private Group with great interest in the community in which we have invested through our various charity donations over the years, including to the Winnicott Foundation, Karma Bank, Fondazione Onlus, Operation Smile, Hands on London and various education institutions.
This report was approved by the board and signed on its behalf.
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DIOMEDES CAPITAL LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Directors present their report and the audited financial statements for the year ended 31 March 2025.
Directors' responsibilities statement
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The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the Group was that of dealing in illiquid fixed income securities, trade claims, loans, structured securities and private debt.
The profit for the year, after taxation, amounted to £1,681,363 (2024 - £3,607,518).
No interim dividends were paid during the year (2024 - £Nil). The directors do not recommend payment of a final dividend.
The Directors who served during the year were:
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DIOMEDES CAPITAL LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The current conditions remain challenging and are further worsened by the difficulties surrounding worldwide economic and geopolitical instability. We are continuously developing new opportunities to secure continued operations in our core markets, products and activities, and generate future business.
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 and the Group'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 and the Group's auditors are aware of that information.
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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DIOMEDES CAPITAL LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DIOMEDES CAPITAL LTD
We have audited the financial statements of Diomedes Capital Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent Company's affairs as at 31 March 2025 and of the Group's profit for the year 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 Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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DIOMEDES CAPITAL LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DIOMEDES CAPITAL 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent Company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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DIOMEDES CAPITAL LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DIOMEDES CAPITAL LTD (CONTINUED)
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
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 Group 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 and those charged with governance around actual and potential litigation and claims;
∙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.
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DIOMEDES CAPITAL LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DIOMEDES CAPITAL LTD (CONTINUED)
∙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.
∙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.
∙Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
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.
David Landau FCA (Senior Statutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
Date: 16 December 2025
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DIOMEDES CAPITAL LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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Income from fixed asset investments
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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Revaluation of current asset investments
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Other comprehensive income for the year
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Total comprehensive income for the year
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Profit for the year attributable to:
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Owners of the parent Company
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Total comprehensive income for the year attributable to:
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Owners of the parent Company
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There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.
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The notes on pages 18 to 36 form part of these financial statements.
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DIOMEDES CAPITAL LTD
REGISTERED NUMBER: 05717236
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Current asset investments
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Equity attributable to owners of the parent Company
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DIOMEDES CAPITAL LTD
REGISTERED NUMBER: 05717236
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
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DIOMEDES CAPITAL LTD
REGISTERED NUMBER: 05717236
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Current asset investments
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Profit and loss account brought forward
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Profit/(loss) for the year
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Profit and loss account carried forward
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DIOMEDES CAPITAL LTD
REGISTERED NUMBER: 05717236
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
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DIOMEDES CAPITAL LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 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 year
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Revaluation reserve movement
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Total comprehensive income for the year
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Total transactions with owners
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The notes on pages 18 to 36 form part of these financial statements.
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DIOMEDES CAPITAL LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 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 year
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Revaluation reserve movement
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Total comprehensive income for the year
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The notes on pages 18 to 36 form part of these financial statements.
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DIOMEDES CAPITAL LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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Impairments of fixed assets
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Decrease/(increase) in debtors
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(Decrease)/increase in creditors
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Income from current asset investments
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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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Sale proceeds for tangible fixed assets
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Purchase of unlisted and other investments
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Sale proceeds of short-term unlisted investments
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Income from fixed asset investments
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net (decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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DIOMEDES CAPITAL LTD
The notes on pages 18 to 36 form part of these financial statements.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The principal activity of Diomedes Capital Limited ("the Company") and its subsidiaries (together "the Group") is that of dealing in illiquid fixed income securities, trade claims, loans, private debt and equities, on an agency and principal basis.
The Company is a private company limited by shares incorporated in England and Wales.
The principal place of business is 346 Kensington High Street, London W14 8NS.
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 ("FRS 102") 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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
On the basis of its immateriality to the Group accounts, the associate undertaking, LFScouting Ltd, has been excluded from the consolidation. Following the end of the year on 12 August 2025, LFScouting Limited was dissolved by voluntary strike off.
At the time of approving the financial statements, the directors have a reasonable expectation, based on their assessment of the Company's financial position and resources, and those of the Group, that the Company and the Group have adequate financial resources to continue in operational existence 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. The directors therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is Sterling.
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.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable for services provided in the normal course of business. Turnover also includes distributions received in excess of the original cost of securities held.
Revenue from the sale of fixed income and other securities is recognised on the trade date in relation to sales made on a principal or matched principal basis. Revenue in relation to introduction and agent fees are recognised when the service is provided. Revenue in relation to distributions are recognised on a received basis. Revenue in relation to reimbursed transaction fees is recognised when the fees are incurred.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss 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 Group in independently administered funds.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year 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 and the Group operate and generate 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.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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 the Consolidated Statement of Comprehensive Income.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Revaluation of listed current investments
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Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the Consolidated Statement of Comprehensive Income.
(i) Fixed asset investments
Investments in subsidiaries and associates are measured at cost less accumulated impairment.
Equity investments are measured at fair value through the Consolidated Statement of Comprehensive Income, except for those equity investments that are not publicly traded and whose fair value cannot be measured reliably, which are recognised at cost less impairment.
(ii) Current asset investments
Investments are initially recognised at cost. Subsequent to initial recognition, current asset investments are revalued to fair value with the movements recognised in the Consolidated Statement of Comprehensive Income. Where market value or fair value cannot be reliably determined, such investments are stated at historic cost less impairment.
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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 Consolidated 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 Group's cash management.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts owed by group undertakings, 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 Consolidated Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In the application of the Group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
(i) Valuation of current asset investments
Current asset investments comprise distressed claims and fixed income securities held by the Group. Due to the distressed nature of these claims there is uncertainty regarding the amount that will be received in distributions against them. The directors estimate the value of the claim as the cost of the asset less any distributions received against it due to the inherent uncertainty regarding the recoverable value of the asset.
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An analysis of turnover by class of business is as follows:
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The analysis of turnover by geographical market is not disclosed for reasons of confidentiality as the directors are of the opinion that this would be seriously prejudicial to the interests of the Group. However, the Group transacts with counterparties in overseas markets including the EEA, USA and emerging markets in the ROW.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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The operating profit is stated after charging:
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Depreciation of tangible fixed assets
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Other operating lease rentals
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Defined contributions pension cost
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During the year, the Group obtained the following services from the Company's auditors and their associates:
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Fees payable to the Group's auditor for the audit of the Group's annual financial statements
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Fees payable to the Group's auditor and its associates in respect of:
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Audit of the financial statements of the Company's subsidiaries
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Taxation compliance services
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Staff costs, including Directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the Directors, during the year was as follows:
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Broking and administration staff
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Group contributions to defined contribution pension schemes
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During the year 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 £650,000 (2024 - £512,000).
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The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £13,522 (2024 - £60,000).
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Current tax on profits for the year
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Origination and reversal of timing differences
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
9.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Dividends from UK companies
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Deferred tax not recognised
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Other differences leading to an increase (decrease) in the tax charge
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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Parent company profit for the year
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The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £2,676,984 (2024 - loss £215,124).
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Charge for the year on owned assets
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
11.Tangible fixed assets (continued)
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Charge for the year on owned assets
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Investments in subsidiary companies
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Investments in associates
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Group
Of the above fixed asset investments, unlisted investments of £800,000 also relates to group balances and are included in the Consolidated Statement of Financial Position.
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The following was a subsidiary undertaking of the Company:
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35 Ballards Lane, London, N3 1XW
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Dealing in illiquid assets
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Subsidiary undertaking (continued)
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The aggregate of the share capital and reserves as at 31 March 2025 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
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Aggregate of share capital and reserves
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The following was an associate of the Company:
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2nd Floor 346 Kensington High Street, London, W14 8NS
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Provision of football information
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On the basis of its immateriality to the Group accounts, the associate undertaking, LFScouting Limited been excluded from the consolidation. Following the end of the year, on 12 August 2025, LFScouting Limited was dissolved by voluntary strike off.
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Due after more than one year
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Amounts owed by group undertakings
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Amounts owed by associated undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Current asset investments
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Cash and cash equivalents
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Included in cash and cash equivalents is £ 273,853 (2024: £ 621,543) held with firms through which the Group clears and settles transactions.
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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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Amounts owed to group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Current asset investments - listed
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Financial assets measured at fair value through the Statement of Comprehensive Income comprise listed current asset investments.
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Charged to profit or loss
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Charged to profit or loss
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Accelerated capital allowances
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Fixed asset timing differences
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Allotted, called up and fully paid
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100 (2024 - 100) Ordinary shares of £1.00 each
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Revaluation reserve
Comprises unrealised gains from the revaluation of current asset investments to fair value.
Profit and loss account
Includes all current retained profits and losses.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £124,924 (2024 - £163,761). Contributions totalling £10,557 (2024 - £117,876) were payable to the fund at the reporting date and are included in creditors.
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Commitments under operating leases
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At 31 March 2025 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Transactions with directors
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During the year, there was a loan to the directors of the Group and the maximum amount outstanding was £39,683 (2024: £487). No interest was charge on the loan. At 31 March 2025, the oustanding balance was £39,683 (2024: £Nil).
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DIOMEDES CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
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Related party transactions
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Where possible the Company has taken advantage of the exemption conferred by section 33.1A of Financial Reporting Standard 102: Related Party Disclosures, from the requirement to disclose transactions with wholly-owned group companies.
Included in other debtors is an amount of £61,313 (2024: £1,305) owed by companies in which one of the directors has an interest. These balances are unsecured and interest-free.
Included in amount owed by group undertaking is an amount of £1,122 (2024: £1,305) owed by companies in which one of the directors has an interest. These balances are unsecured and interest-free.
Included within other creditors is an amount of £2,390 (2024: £364,250) owed to the directors of the Group.
Included within administrative expenses is an amount of £6,932 (2024: £NIL) to a relative of a director of the Group.
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The ultimate controlling party is C Amore by virtue of his shareholding.
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