ClarityAM made good progress with its strategic objectives during the year. Satisfaction with our advice and service (as evidenced by feedback from our clients) remains high and we continue to attract new clients by referrals from existing clients.

Our investment management activity, Arran Investment Management, has achieved very strong net returns across the entire range of Arran investment strategies that we offer. We compare the net return of each strategy against the relevant Investment Association sector and also against the private client benchmarks produced by an independent consultant. Over the five-year period to 31 December 2025, each Arran core investment strategy has achieved a higher net return than its relevant Investment Association sector benchmark.

The principal risks and uncertainties facing the company concern maintaining strong investment returns and delivering outstanding client service. In the context of its business and liquidity needs, ClarityAM maintains a robust balance sheet and capital structure which will allow it to continue to pursue its strategic objectives.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2026.

The principal activities of ClarityAM are the provision of investment advice and investment management services.

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

Remuneration policy and practices

ClarityAM’s remuneration policies and practices have been developed to encourage staff to behave as if they are long-term shareholders in our business. We believe that this approach helps align the interests of our staff with the interests of our clients and shareholders and encourages regulatory compliance.

Senior staff are primarily incentivised through equity ownership and, where appropriate, variable remuneration. Low or zero salary is paid. The financial performance criteria used focuses on the creation of an attractive, long-term investment track record, client satisfaction and sustainable profits. Staff members understand that ClarityAM operates a fully flexible policy on variable remuneration, including the possibility of paying no variable remuneration component.

We believe that positive recognition is key to developing a healthy culture. One example of positive recognition is that we invite staff members that have contributed to increasing the value of ClarityAM to buy shares in our company. We do not issue options; staff buy our shares at fair value and so have “skin in the game”.

ClarityAM has designed its remuneration structures proportionate to the scale and complexity of the business and in a manner to promote effective risk management and to discourage risk taking in excess of the company’s stated risk tolerance. Due to the size and nature of ClarityAM, remuneration policy is determined by the Board rather than by a separate remuneration committee. The Board is responsible for determining the level and structure of ClarityAM’s overall remuneration arrangements. The Board aims to secure and retain sufficiently skilled employees in order to deliver the best levels of client service.

The Firm is classified as a small and non-interconnected (SNI) MIFIDPRU investment firm. As such, the Firm is subject to the basic remuneration requirements under SYSC 19G. The Firm is not required to identify Material Risk Takers for the purposes of the additional non-SNI remuneration requirements. Nevertheless, the Firm recognises that senior management and staff involved in investment management, advice, compliance and client outcomes may influence the Firm’s risk profile and client outcomes. The Firm’s remuneration arrangements are therefore designed to promote sound risk management, good client outcomes, regulatory compliance and long-term sustainability.

The executive directors of ClarityAM are shareholders and the value of their shareholding is expected to be linked to their performance.

WP Audit Services LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 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.

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.

We have audited the financial statements of Clarity Advice & Management Ltd (the 'company') for the year ended 31 March 2026 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).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 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.

Basis for opinion

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 Auditor's 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 UK, including the FRC’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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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

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

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.

As explained more fully in the directors' responsibilities statement, 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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the company, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified: the Companies Act 2006 and FRS 102.

We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the charity operations and to avoid material penalties, including FCA regulations, data protection regulations and employment laws.

Having reviewed the laws and regulations applicable to the company, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:

• Selected a team with sector experience was selected for completing the audit;

• Obtained an understanding of the company procedures for ensuring compliance with laws and regulations;

• Obtained and reviewed internal policy and procedure documents;

• Made enquiries of management and the directors regarding whether they were aware of any actual or suspected incidences of non-compliance with laws and regulations;

• Obtained and reviewed meeting minutes;

• Obtained and reviewed correspondence with the regulator;

• Reviewed legal expenses accounts for indications of any possible non-compliance; and

• Reviewed the completeness and accuracy of any disclosures made in the financial statements.

We assessed the susceptibility of the company financial statements to material misstatement, including considering how fraud might occur. This was performed by:

• Making an assessment of the company systems & controls, including identifying any weaknesses and considering the risk of management override of controls;

• Assessing the susceptibility of the company’s financial statements to material misstatements, including considering how fraud could occur;

• Considering if there are any incentives or opportunities for management to manipulate financial results;

• Obtaining and evaluating the directors assessment of the risk of fraud, and enquiring as to whether they were aware of any actual or suspected fraud;

• Reviewing the accounting policies and accounting estimates for signs of management bias;

• Identified key risks relating to irregularities including the risk of fraud relating to revenue recognition and management override of controls; and

• We then designed audit procedures in response to the risks identified, by performing substantive testing on income streams and reviewing journal entries for signs of management bias or override of controls.

The audit has been planned and performed in in accordance with auditing standards, however, because of the inherent limitations of audit procedures there remains a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. There are inherent difficulties in detecting irregularities, and irregularities that result from fraud may be more difficult to detect than irregularities that result from error, for example due to concealment, override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less audit procedures are able to identify it.

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Clarity Advice & Management Ltd is a private company limited by shares incorporated in England and Wales. The registered office is North House, 198 High Street, Tonbridge, Kent, TN9 1BE.

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 amounts 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.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is attributable to the supply of investment management and advisory services. Fees are recognised on a receivable basis.

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:

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.

Fixed asset investments are initially recognised at their transaction cost and are subsequently measured at fair value at each reporting date, with changes in fair value recognised in the statement of comprehensive income.

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.

The company's financial instruments comprise cash, short-term debtors and creditors, and investments in collective investment funds.

Short-term debtors and creditors are measured at settlement value, less any impairment where appropriate.

Investments in collective investment funds, including equity, bond and money market funds, are measured at fair value. Gains and losses arising from changes in fair value are recognised in profit or loss.

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.

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.

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.

The average monthly number of directors and persons employed by the company during the year was three (2025: five).

During the period, remuneration awarded to staff comprised £26,244 fixed remuneration and £28,773 variable remuneration. Fixed remuneration included salary. Variable remuneration, where awarded, was determined with reference to the Firm’s financial performance, client outcomes, individual contribution, risk management and regulatory compliance.

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

The directors consider that there is no single ultimate controlling party.