Company Registration No. 06909016 (England and Wales)
LEK SECURITIES UK LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
LEK SECURITIES UK LIMITED
COMPANY INFORMATION
Director
Charles Lek
Company number
06909016
Registered office
312 Sutton Common Road
Sutton
Surrey
SM3 9NQ
Auditor
Fisher, Sassoon & Marks
43-45 Dorset Street
London
W1U 7NA
LEK SECURITIES UK LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
LEK SECURITIES UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The director presents the strategic report and financial statements for the year ended 31 December 2024.

Fair review of the business

The company results reflect operating losses, primarily bad debts and foreign exchange losses, incurred following the decision to cease undertaking broking and custody services in 2022 (having agreed voluntarily to conditions imposed by the Financial Conduct Authority("FCA")). The company has now submitted an application to the FCA to cancel its FCA authorisation. The director's intention is to wind down the company, subject to the FCA approving the cancellation of application, and concluding any other legal and regulatory obligations. Accordingly, the Accounts are drawn up on a break up basis.

Lek Securities UK Limited was served in 2023 a Claim Form and Particulars of Claim on the company. The client’s claims broadly relate to the services the company provided under a written Custody, Brokerage and Business Services Agreement, the status of assets transferred by the client to the company under Trust and charges the company levied under the Services Agreement. The company filed and served its Defence and Counterclaim. The Director has sought legal advice and believes the company has strong merits in defending its case and has firm grounds to advance its counterclaim. Reference to the claims are detailed in notes 17 and 18 to the financial statements.

Development and performance

At the year end, the company had net assets of £1,374,937 (2023: £1,641,260).

Key performance indicators

The key performance indicators are operating loss of £266,323 (202 3: Loss (£651,503) as disclosed in the statutory profit and loss account. All activities are classified as discontinued.

Director's statement of compliance with their duty to promote the success of the Company

The director of the company ha s acted in a way that he consider's, in good faith, would most likely promote the success of the company for the benefit of its shareholders, employees and customers as a whole, and in doing so, the director ha s considered (amongst other matters):

- the likely consequences of any decision in the long term,

- the interest of the company's employees,

- the need to foster the company's business relationships with customer and others,

- the impact of the company's operations on the community and environment,

- the desirability of the company maintaining a reputation for high standards of business conduct, and

- the need to act fairly among shareholders, employees and customers of the company

On behalf of the board

Charles Lek
Director
3 February 2026
LEK SECURITIES UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of bespoke execution, custody, settlement and clearing services.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Charles Lek
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to:
- settle the terms of payment with suppliers when agreeing the terms of each transaction,
- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts,
- pay in accordance with the company's contractual and other legal obligations.

Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

The company’s principal foreign currency exposures arise from holding foreign currencies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

Credit risk

Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the Board.

Post reporting date events

Subsequent to the year end a client of Lek Securities UK Limited served a Claim Form and Particulars of Claim on the company. The client’s claims broadly relate to the services the company provided under a written Custody, Brokerage and Business Services Agreement, the status of assets transferred by the client to the company under Trust and charges the company levied under the Services Agreement. The company filed and served its Defence and Counterclaim. The Director has sought legal advice and believes the company has strong merits in defending its case and has firm grounds to advance its counterclaim. Reference to the claims are detailed in notes 17 and 18 to the financial statements.

Future developments

There are no matters to report.

Auditor

In accordance with the company's articles, a resolution proposing that Fisher, Sassoon & Marks be reappointed as auditor of the company will be put at a General Meeting.

LEK SECURITIES UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is 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 director is required to:

- select suitable accounting policies 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; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

LEK SECURITIES UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

On behalf of the board
Charles Lek
Director
3 February 2026
LEK SECURITIES UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEK SECURITIES UK LIMITED
- 5 -

Disclaimer of opinion

We were engaged to audit the financial statements of Lek Securities UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We do not express an opinion on the accompanying financial statements. Because of the significance of the matter described in the ba sis for d isclaimer of o pinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer of opinion

The results for the year include a write back of a withholding tax provision, made in prior years, in the sum of £946,766 and included within other operating income.We were unable to obtain sufficient and appropriate audit evidence to confirm the accounting entry due there being no detailed reconciliation between the back office reports and the historical withholding tax reports submitted and our being unable to carry out alternative testing methods to draw conclusions on the validity of the provision write back. Accordingly. due to the material and pervasive nature of the item outlined above, we were unable to determine whether any adjustments might have been found necessary to the statement of comprehensive income, the statement of financial position and statement of changes in equity.

We are therefore unable to form an opinion on the financial statements as a whole.

Emphasis of matter

We draw attention to Note 1.2 to the financial statements which explains that the director intends to liquidate the company and therefore does not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 1.2.

Our opinion is not modified in respect of this matter.

Opinions on other matters prescribed by the Companies Act 2006

Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:

• the information given in the strategic report and directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements;

and

• the strategic report and directors’ report have been prepared in accordance with applicable legal requirements.

LEK SECURITIES UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEK SECURITIES UK LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

Notwithstanding our disclaimer of an opinion on the financial statements,in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the strategic report or the directors’ report.

Arising from the limitation of our work referred to above:

• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

• we were unable to determine whether adequate accounting records have been kept.

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:

• 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.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 auditor's 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.

The extent to which the audit was considered capable of detecting irregularities including fraud

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.

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the financial services sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Financial Conduct Authority (FCA), Companies Act 2006, taxation legislation, anti-money-laundering, and employment legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

LEK SECURITIES UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEK SECURITIES UK LIMITED (CONTINUED)
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

- understanding the design of the company’s remuneration policies.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates as set out in note 2 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the FCA and reviewing the company’s compliance monitoring procedures and findings.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Marks (Senior Statutory Auditor)
For and on behalf of Fisher, Sassoon & Marks, Statutory Auditor
Chartered Accountants
43-45 Dorset Street
London
W1U 7NA
3 February 2026
LEK SECURITIES UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
3
-
594,112
594,112
-
1,045,414
1,045,414
Cost of sales
-
(120,122)
(120,122)
-
(180,656)
(180,656)
Gross profit
-
473,990
473,990
-
864,758
864,758
Administrative expenses
-
0
(1,687,079)
(1,687,079)
-
0
(1,516,261)
(1,516,261)
Other operating income
-
0
946,766
946,766
-
-
-
0
Operating loss
5
-
(266,323)
(266,323)
-
(651,503)
(651,503)
Loss before taxation
-
0
(266,323)
(266,323)
-
0
(651,503)
(651,503)
Tax on loss
9
-
0
-
0
-
0
-
0
112,763
112,763
Loss for the financial year
-
0
(266,323)
(266,323)
-
0
(538,740)
(538,740)
LEK SECURITIES UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
13
348,798
1,242,899
Cash at bank and in hand
1,292,056
1,468,627
1,640,854
2,711,526
Creditors: amounts falling due within one year
15
(265,917)
(1,070,266)
Net current assets
1,374,937
1,641,260
Capital and reserves
Called up share capital
16
2,180,000
2,180,000
Profit and loss reserves
(805,063)
(538,740)
Total equity
1,374,937
1,641,260
The financial statements were approved and signed by the director and authorised for issue on 3 February 2026
Charles Lek
Director
Company registration number 06909016 (England and Wales)
LEK SECURITIES UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
2,180,000
4,328,552
6,508,552
Year ended 31 December 2023:
Loss and total comprehensive income
-
(538,740)
(538,740)
Dividends
11
-
(4,328,552)
(4,328,552)
Balance at 31 December 2023
2,180,000
(538,740)
1,641,260
Year ended 31 December 2024:
Loss and total comprehensive income
-
(266,323)
(266,323)
Balance at 31 December 2024
2,180,000
(805,063)
1,374,937
LEK SECURITIES UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
21
(176,571)
(2,254,903)
Income taxes paid
-
0
(33,016)
Net cash outflow from operating activities
(176,571)
(2,287,919)
Financing activities
Dividends paid
-
0
(4,328,552)
Net cash used in financing activities
-
(4,328,552)
Net decrease in cash and cash equivalents
(176,571)
(6,616,471)
Cash and cash equivalents at beginning of year
1,468,627
8,085,098
Cash and cash equivalents at end of year
1,292,056
1,468,627
LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Lek Securities UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 312 Sutton Common Road, Sutton, Surrey, SM3 9NQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

In accordance with his responsibilities, the director has considered the appropriateness of the going concern basis for the preparation of the financial statements. It is the intention of the director to cease operations of the company albeit subject to no longer being authorised by the FCA and concluding the legal action against the company as described in note 16. As a consequence, the director has determined that the financial statements should be prepared on a basis other than that of a going concern.true

No material adjustments arose as a result of this change in preparation.

1.3
Turnover

Turnover represents amounts receivable for the provision of broking, settlement and custody services which are recognised on the date of settlement of the transaction.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
25% Straight Line Basis
Computer equipment
25% Straight Line Basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.13

Assets held under trust

The Company acts as a trustee to money and assets held under relevant trust arrangements on behalf of clients whose funds/assets cannot be returned without approval from the Office of Financial Sanctions Implementation (OFSI). Such assets are not shown on the face of the balance sheet as the company is not beneficially entitled to thereto.

LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The director do es not consider there to be any critical judgements or key sources of estimation uncertainty involved in the preparation of the company's financial statements except as stated below.

Critical judgements

The following judgements (apart from those involving estimates) were exercised by the director when assessing amounts recognised in the financial statements.

Legal claim against the company

A client of Lek Securities UK Limited served a Claim Form and Particulars of Claim on Lek UK. The client’s claims broadly relate to the services Lek UK provided under a written Custody, Brokerage and Business Services Agreement, the status of assets transferred by the client to Lek UK under Trust and charges Lek UK levied under the Services Agreement. Lek UK filed and served its Defence and Counterclaim. The Director has sought legal advice and believes the company has strong merits in defending its case and has firm grounds to advance its counterclaim.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Gross commission
591,288
677,295
Fees direct
-
344,568
Client interest
946
11,083
Interest receivabe
1,878
12,468
594,112
1,045,414
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional 1 - Above operating profit
(946,766)
-

Exceptional income is the write back of withholding taxes on prior years transactions that were found not to be due.

LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
5
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(386)
189,226

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £386 (2023 - £189,226).

6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,137
23,546
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
1
2

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
191,170
289,694
Social security costs
4,283
11,484
Pension costs
11,083
6,500
206,536
307,678
8
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
160,000
160,000
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
(112,763)
LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 18 -

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(266,323)
(651,503)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(66,581)
(123,786)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
11,023
Unutilised tax losses carried forward
76,618
-
0
Taxation charge/(credit) for the year
10,037
(112,763)
Taxation charge/(credit) in the financial statements
-
(112,763)
Reconciliation - the current year tax charge does not reconcile to the above analysis. Please review figures in the database.
10,037
-
10
Discontinued operations

The company has ceased to undertake broking,settlement and custody services and applied to cancel its FCA authorisation. Accordingly all revenues and costs are classified as arising from discontinued operations.

11
Dividends
2024
2023
£
£
Interim paid
-
0
4,328,552
12
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 January 2024 and 31 December 2024
3,300
9,948
13,248
Depreciation and impairment
At 1 January 2024 and 31 December 2024
3,300
9,948
13,248
LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
(Continued)
- 19 -
Carrying amount
At 31 December 2024
-
0
-
0
-
0
At 31 December 2023
-
0
-
0
-
0
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors and trading assets
51,239
116,914
Corporation tax recoverable
112,763
112,763
Amount due from parent undertaking
170,403
954,758
Other debtors
6,770
6,770
Prepayments and accrued income
7,623
51,694
348,798
1,242,899

14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
228,412
1,078,442
Carrying amount of financial liabilities
Measured at amortised cost
261,040
1,059,365
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors and trading liabilities
204,124
25,818
Amounts due to fellow group undertakings
220
218
Other taxation and social security
4,877
10,901
Other creditors
730
936,161
Accruals and deferred income
55,966
97,168
265,917
1,070,266
LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
2,180,000
2,180,000
2,180,000
2,180,000
17
Contingent liabilities

A client of Lek Securities UK Limited served a Claim Form and Particulars of Claim on the company. The client’s claims broadly relate to the services the company provided under a written Custody, Brokerage and Business Services Agreement, the status of assets transferred by the client to the company under Trust and charges the company levied under the Services Agreement. The company filed and served its Defence and Counterclaim. The Director has sought legal advice and believes the company has strong merits in defending its case and has firm grounds to advance its counterclaim. Accordingly, the director has not made a provision in the financial statements.

18
Events after the reporting date

A client of Lek Securities UK Limited served a Claim Form and Particulars of Claim on the company. The client’s claims broadly relate to the services the company provided under a written Custody, Brokerage and Business Services Agreement, the status of assets transferred by the client to the company under Trust and charges the company levied under the Services Agreement. The company filed and served its Defence and Counterclaim. The Director has sought legal advice and believes the company has strong merits in defending its case and has firm grounds to advance its counterclaim.

19
Related party transactions

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
LEK Securities Corporation
220
218

2024
2023
Amounts due from related parties
£
£
LEK Holdings Limited
170,403
954,758

The amount owed by the parent company was interest free and unsecured.

20
Ultimate controlling party

The ultimate parent is Lek Holdings Limited by virtue of its shareholding in LEK Securities UK Limited.

The ultimate controlling party is Charles Lek by virtue of his shareholding in LEK Holdings Ltd.

LEK SECURITIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
21
Cash absorbed by operations
2024
2023
£
£
Loss after taxation
(266,323)
(538,740)
Adjustments for:
Taxation charged/(credited)
-
0
(112,763)
Movements in working capital:
Decrease/(increase) in debtors
894,101
(772,808)
Decrease in creditors
(804,349)
(830,592)
Cash absorbed by operations
(176,571)
(2,254,903)
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,468,627
(176,571)
1,292,056
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