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Registered number: 02781314
KYTE BROKING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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KYTE BROKING LIMITED
COMPANY INFORMATION
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K Haider (resigned 7 April 2025)
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Chartered Accountants & Statutory Auditor
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KYTE BROKING LIMITED
CONTENTS
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Independent auditors' report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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KYTE BROKING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their strategic report for the year ended 31 March 2025.
The principal activity of the Kyte Broking Limited ("the Company") is that of brokering financial instruments through across a wide range of products and markets. By providing services to brokers, the Company earns a percentage on all commissions generated. The Company is authorised and regulated by the Financial Conduct Authority (FCA). The Company made a profit of £ 2,814,220 before tax in the year 31 March 2025 (31 March 2024: £ 5,865,925 (as restated)). The Directors are satisfied with the performance of the Company, given the increased focus on the wider Market Securities Group during the year and the role the Company has played in that global performance. The Directors remain confident of the sustainability of the business and expect to maintain the current level of performance in the future due to continued investment in automation and infrastructure within the firm. Management continues to increase efforts on expanding and growing existing brokerage desks by recruiting more brokers and enhancing product range available to clients as well as quality of service.
Principal risks and uncertainties
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The key risks to the Company are a potential reduction in the trading volumes due to a volatile economic climate and fears of an economic slowdown and potential recession. The political and economic uncertainty has regularly created market volatility throughout the year which has at times caused a chaotic environment for the brokers and their clients; however, this has not had an adverse effect on the Company. The Company continues to operate and expand the Organised Trading Facility; the Company activity associated with this continues to accelerate and we continue to attract new business. The changes in interest rates globally have caused a shift in popularity of certain products but the Company offers a well-diversified range of products meaning reduced trading in some products has been offset by increased trading in others. Other risks including credit risk, market risk, foreign currency risk, and liquidity risk, are detailed in the notes to the accounts.
Financial key performance indicators
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Management uses a series of Key Performance Indicators (KPIs) to monitor performance and financial conditions.
The primary KPIs for the Company are revenue, which has increased to £128m from £121m (2024), and the net revenue income margin before tax, which has decreased from 5% to 2% due to a greater proportion of revenues being recharged as per the intercompany SLA. Share from broking franchises have risen £3,786,983 in the year ending 31 March 2025 when compared to the year ending 31 March 2024 (£2,759,224 in 2024) as one of the franchisees experienced an excellent year of performance. The Board of Directors considers this level of performance satisfactory given the prevailing market conditions and given the role the Company plays in the global performance of the wider Market Securities Group.
Other key performance indicators
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Gross Margin has decreased to 18% (March 2025) from 20% (March 2024).
Revenue per Admin Expense Ratio has decreased in the year.
20251.13:1
20241.31:1
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KYTE BROKING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
This report was approved by the board and signed on its behalf.
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KYTE BROKING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the the Company is that of brokering financial instruments across a wide range of products and markets. By providing services to brokers, the Company earns a percentage on all commissions generated.
The profit for the year, after taxation, amounted to £2,157,867 (2024 - £4,227,862 as restated ).
The directors propose a final dividend of £4,028,908 (2024: £nil).
The directors who served during the year were:
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K Haider (resigned 7 April 2025)
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KYTE BROKING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
As detailed in the Strategic Report, the directors remain confident in the long-term outlook for the business. The Company’s primary objectives are to continue expanding broker recruitment, which is expected to drive revenue growth, and to further develop its proprietary technology. This focus on internal software development aims to enhance automation, reduce reliance on third-party solutions, and improve overall operational efficiency.
Details of the Company’s Credit Risks, Market Risks, Foreign Currency Risks, Liquidity Risks, Interest Rate Risks, and Operational Risks are detailed within the notes to the accounts.
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KYTE BROKING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Greenhouse gas emissions, energy consumption and energy efficiency action
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This disclosure summarises the SECR report for Kyte Broking Limited, required under the Companies (Directors’ Report) and Limited Liability Partnerships (Amendment) Regulations 2018. The company is reporting on energy use and associated emissions from relevant UK operations.
Reporting boundary: All UK-based operations under operational control
Methodology: Emissions calculations are based on the UK Government's 2024 GHG Conversion Factors published by BEIS/Defra. Location-based reporting is used for electricity emissions.
Energy Consumption and Greenhouse Gas Emissions
Energy Consumption
Electricity consumption data has been estimated for the full reporting period using actual a combination of actual and prorated estimated data. This approach provides a reasonable estimate of total electricity consumption for the year. No gas or other fuel sources were used during the period.
Emissions Breakdown
Emissions have been calculated using the UK Government's 2024 GHG Conversion Factors for Company Reporting, published by the Department for Energy Security and Net Zero (DESNZ, formerly BEIS). Electricity emissions are reported using the location-based method, which reflects the average emissions intensity of the UK grid (0.19338 kg CO2e/kWh)
Electricity (Scope 2, location-based):
151,000 kWh × 0.19338 kg CO2e/kWh = 29,199 kg CO2e = 29.20 tCO2e
Intensity Ratios
The following intensity ratios are used to normalise emissions relative to the size and activity of the company.
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Emissions per employee (FTE)
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Energy Efficiency Action Taken
No formal energy efficiency initiatives were undertaken during the reporting period. However, the company remains committed to monitoring its energy use and considering potential future actions to reduce its environmental impact as part of its wider ESG strategy.
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KYTE BROKING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There has been a group re-organisation post year-end and Kyte Broking Limited is now held directly by the ultimate parent undertaking, Market Securities Group Limited, a company incorporated in Hong Kong. There have been no other significant events affecting the Company since the year end.
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.
The FCA MIFIDPRU 8 unaudited disclosures are published and updated annually on the company's website.
This report was approved by the board and signed on its behalf.
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KYTE BROKING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KYTE BROKING LIMITED
We have audited the financial statements of Kyte Broking Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31 March 2025 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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KYTE BROKING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KYTE BROKING LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial 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.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' responsibilities statement set out on page 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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KYTE BROKING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KYTE BROKING LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiring of management around actual and potential litigation and claims;
∙Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
∙Reviewing minutes of meetings of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Perfoming 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;
∙Reviewing the general ledger in detail for all transactions with related parties;
∙Performing walkthrough testing to ensure systems and controls are operating as recorded where appropriate.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
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KYTE BROKING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KYTE BROKING LIMITED (CONTINUED)
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.
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.
Nick Bishop FCA (Senior Statutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
27 June 2025
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KYTE BROKING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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Income from fixed assets investments
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Interest receivable and similar income
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Profit for the financial year
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There was no other comprehensive income for 2025 (2024:£NIL).
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The notes on pages 15 to 30 form part of these financial statements.
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KYTE BROKING LIMITED
REGISTERED NUMBER: 02781314
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Debtors: amounts falling due within one year
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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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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 30 form part of these financial statements.
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KYTE BROKING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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At 1 April 2023 (as previously stated)
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At 1 April 2023 (as restated)
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Comprehensive income for the year
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Total comprehensive income for the year
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At 1 April 2024 (as previously stated)
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At 1 April 2024 (as restated)
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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The notes on pages 15 to 30 form part of these financial statements.
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KYTE BROKING LIMITED
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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Amortisation of intangible assets
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Depreciation of tangible assets
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Decrease/(increase) in debtors
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Decrease/(increase) in amounts owed by groups
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(Decrease)/increase in creditors
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Increase in amounts owed to groups
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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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Purchase of unlisted and other investments
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Purchase of short-term unlisted investments
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Net cash from investing activities
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Net (decrease)/increase 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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The notes on pages 15 to 30 form part of these financial statements.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Kyte Broking Limited ("the Company") is a private limited company incorporated in England and Wales.
The principal activity of the the Company is that of brokering financial instruments through across a wide range of products and markets. By providing services to brokers, the Company earns a percent on all commissions generated.
The principal place of business is 55 Baker Street, London, England, W1U 8EW.
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 management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable future and will be able to meet its debts as they fall due.
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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.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue relates to net brokerage commissions which are recognised on the trade date regardless of when the payment is received.
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Income from fixed asset investments
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Income from fixed asset investments represents profit shares from UK franchised broking LLPs of which the Company is a member and is recognised in the Statement of Comprehensive Income when the right to the profit share is determined.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in 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 Company in independently administered funds.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position, 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.
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Intangible assets and amortisation
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Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Development expenditure is capitalised only if the expenditure can be measured reliably, is technically and commercially feasible, future economic benefits are probable and the Company intends to and has sufficient resources to complete development and use of the asset. Otherwise it is recognised in the Statement of Comprehensive Income as incurred.
Amortisation is provided to write off the cost less the estimated residual value of intangible assets on a straight line basis over the estimated useful economic life of 5 years.
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.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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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 Statement of Comprehensive Income.
Fixed asset investments are in unlisted entities, which have been classified as fixed asset investments as the Company intends to hold them on a continuing basis. The investments are held at cost.
Long-term asset investments are in treasury bills, which have been classified as non-current asset invetsments as the maturity date is more than one year. The investments are held at amortised cost.
Current asset investments are in treasury bills and bonds, which have been classified as current asset investments as the Company intends to dispose of them at maturity. The treasury bills are held at amortised cost and the bonds are held at fair value.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The Company 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, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and amounts owed to group undertaking, 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.
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 set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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KYTE BROKING LIMITED
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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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the year end date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
In preparing these financial statements the directors have made the following judgements;
1.Impairment of debtors
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including historical experience.
2.Capitalisation of development costs and useful life
Development expenditure represents expenditure incurred for building internal software which supports the services of the Company. Judgement is exercised by management when determining which costs meet the criteria for capitalisation and lead to future economic benefits sufficient to recover the capitalised costs. Intangible assets are amortised over their expected useful lives. The useful life used to amortise intangible assets relates to management's estimate of the period over which economic benefit will be derived from the asset. There are no further judgements or estimates which materially effect the amounts in the financial statements.
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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The operating (loss)/profit is stated after charging:
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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Fees payable to the Company's auditors in respect of:
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Taxation compliance services
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All assurance services not included above
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KYTE BROKING LIMITED
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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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Profit share from LLPs in which the Company is a member
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Current tax on profits for the year
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Factors affecting tax charge for the year
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The tax assessed for the year is 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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Capital allowances for year in excess of depreciation
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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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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Internally developed software
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Charge for the year on owned assets
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KYTE BROKING LIMITED
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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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
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Current asset investments
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Other short term investments
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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 and repayable on demand.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Allotted, called up and fully paid
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4,360,000 (2024 - 4,360,000) Ordinary shares of £1.00 each
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Share premium account
Includes amounts paid for share capital over the nominal value of the shares.
Profit and loss account
Includes all current and prior period retained profits and losses, less dividends paid.
After the 2024 financial statements of Kyte Broking Limited had been authorised, the profit share from one of the LLP's in which Kyte Broking Limited is a member was reduced for 2024. This reduction in the profit share received has been adjusted in the comparative information in these accounts. The net effect of this adjustment is to decrease profit, net assets and debtors by £850,407.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £ 97,365 (2024 - £69,668). Contributions totalling £172,160 (2024 - £25,037) 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 Company 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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KYTE BROKING LIMITED
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 FRS 102 section 33.1A from the requirement to disclose transactions with other wholly owned group undertakings.
Investment income includes £1,913,097 (2024: £1,887,703) from an LLP in which Kyte Broking Limited is a member.
Included within trade creditors is a balance of £ 1,571,213 (2024: £ 1,472,046) due to an LLP in which Kyte Broking Limited is a member.
Included within amounts owed to group undertakings is a balance of £115,679 (2024: £705,042) due to a group company.
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Post balance sheet events
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There has been a group re-organisation post year-end and Kyte Broking Limited is now held directly by the ultimate parent undertaking, Market Securities Group Limited, a company incorporated in Hong Kong.
At the year-end the immediate parent undertaking was Kyte Broking (Holdings) Limited, a company incorporated in England and Wales. Since the year-end there has been a group re-organisation and Kyte Broking limited is now held directly by the ultimate parent undertaking, Market Securities Group Limited, a company incorporated in Hong Kong.
There is no ultimate controlling party.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Financial risk management
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The Board of Directors is responsible for determining the level of risk acceptable to the Company. This is subject to regular review.
The Company seeks to mitigate its risks through the application of strict limits and controls, a monitoring process at operational level, and the use of insurance policies where appropriate. Adherence to these policies is monitored regularly at meetings of the Board, the Risk Committee, and the Executive Committee.
Credit risk
The Company’s principal financial assets are bank balances, trade debtors, liquid financial investments and other debtors.
The Company’s credit risk is primarily attributable to its financial assets. The amounts presented in the balance sheet are net of allowances for doubtful debts. The credit risk on bank balances is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Financial investments are primarily in very liquid US governmental bonds and money market funds. The credit risk associated it limited due to the high creditworthiness of the counterparty. They are also held with a large high credit rating bank.
Similarly, a large proportion of the Company’s trade debtor balances are with counterparties which are institutions with high credit-ratings. There is no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. Historical levels of bad debts have been immaterial.
The carrying amount of financial instruments best represents the maximum exposure to credit risk.
The age of financials assets past due at the reporting period, but not provided for are as follows:
The Company is not involved in proprietary trading, therefore has a very limited exposure to market risk beyond foreign currency risk.
Foreign currency risk
The Company generates income in several currencies. This gives rise to foreign currency risk on the translation of its income into Sterling. Due to recent increased in the volatility of FOREX rates, especially GBP to USD, the firm has decided to hold higher balances in USD than in previous periods in order to protect the firm.
The table below illustrates the impact on profit or loss and equity of adjusting year end exchange rates on all financial assets and liabilities denominated in currencies material to the Company other than GBP.
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KYTE BROKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Interest rate risk
Interest rate risk is the risk that the Company will sustain losses from adverse movements in interest rates, either through a mismatch of interest-bearing assets and liabilities, or through the effect such movements have on the value of interest-bearing instruments.
The Company has a limited exposure to interest rate risk. Cash deposits from customers and deposits on bank accounts are remunerated on the same basis.
The firm holds no third party external debt, so has a limited exposure to movement in interest rates.
Capital risk management
The Company’s policy in respect of capital risk management is to maintain a strong capital base so as to retain creditor and market confidence. The firm maintains a capital base of more than £16m which sufficiently satisfied the capital requirement of the FCA.
Liquidity risk
Liquidity risk is the risk the Company will not have sufficient liquid assets to meet its financial obligations as they fall due.
The Company has no external borrowings, is cash flow positive and maintains a large amount of cash.
Treasury is managed in accordance with the Financial Conduct Authority’s guidelines. The policies that govern the management of the Group’s liquidity risk are driven by the Risk Committee and are documented in the Group’s Contingency Funding Plan insofar as they relate to managing periods of liquidity stresses.
The net liquidity positions in the table below relate to cash flows on contractual obligations existing at the statement of financial position date. They do not take account of any cash flows generated from profits on normal trading activities.
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Trade and other payables < 12 months
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Kyte Broking Limited ("the firm") have Introducing Broker status with the National Futures Association (NFA). As at 31 March 2025, the firm had adjusted net capital of $4,400,183 and an audited excess net capital of $4,355,183.
There is no material adjustment between the 1FR-IB form submitted on 23 April 2025 and the audited financial statements.
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