The directors present the strategic report for the year ended 31 December 2025.
Method can provide its services only to "Professional Clients" and "Qualified Counterparties" and since September 2022 may control but cannot hold client money. Company efforts are focused on pursuing market strategies based on consistent income and risk diversification.
The financial results of Method show a gross profit of €13,808,747 (2024: €3,811,434) and a net profit for the year is €584,753 (2024: a loss of €632,976).
As clarified below (refer to note 15), the company performs periodic risk assessments in order to identify the risks relating to its activities, processes and systems. The foregoing risk assessment exercise is always documented within the firm's Risk Management Procedures Manual (RMP) and internal minutes are prepared for record keeping purposes. Based on the above and as highlighted within the RMP, the following risk categories are deemed to be material to the firm's business:
Business risks: Business risk arises when a firm is unable to realise its business plan and achieve its strategy targets due to insufficient planning or changes in the external environment. The company has demonstrated control over its planning process also considering the prevailing economic conditions. As a result it has always been in a position to adopt its proposed business strategy. The firm has continued to engage professional advisors in respect of all business developments both in the UK and overseas: in the medium term, the company will this be able to implement its proposed business strategy, even within very dynamic internal and external environments.
Operational risks: Considered to be the risk of loss resulting from inadequate or failed internal processes, people and systems or external events, including legal risk. This is regularly assessed by the Board of Directors (BoD) with the help of the Accounting and Risk Management Departments. The company has always paid special attention to the implementation of effective measures deemed to mitigate (if not eliminate at all) the implications of the said risk drivers, including: ad-hoc cyber-security program starting from Q4 2024. Furthermore, all new business opportunities are considered in relation to the additional risks that they may bring, and new activities will only be perused where the appropriate infrastructure is in place to address those risks. Once new lines of business are taken on, the company works to integrate those businesses into its current infrastructure, taking best practices across where necessary. Stress testing is also performed within the scope of ICARA process to determine whether there could be significant issues likely to arise in the foreseeable future that could have potential material impact on the company's going concern.
IFPR Capital Adequacy Requirements: The internally-developed risk management dashboard has been updated to make sure that all IFPR provisions are duly taken into account. In particular, all trading desks are monitored in real time in terms of PnL, VaR, Net Position Held and Regulatory Capital Requirements (K-NPR). Online computations are logged for record keeping purposes and available for consultation on demand. In addition to that, the risk management team receives a wrap-up email with a screenshot of the aforementioned, risk thresholds (on a single trading desk basis) every 15 mins. Daily (at 1pm Italy time) the risk management department receives the daily output for K-CON requirements (with a detailed overview in terms of issuer, exposure and assigned risk weight). Clearly enough, the said output can be produced automatically even more often (or at a different time) on demand, based on the management's needs. K-DTF is computed relying on our internal BO systems: computations are clearly detailed both for cash and for derivatives instruments are are updated every month end. Even in this case, automatic computations can be carried out even more often, depending on the company's needs. K-AUM is also updated at the end of the month, even though computations can be potentially carried out at any time, if need be, based on internally available data (gathered by an "ad-hoc" team and shared with the relevant departments via the AUMreport mailing list).
Please be aware that
K-CMG is not applicable, being conceived as an alternative to K-NPR.
K-TCD, K-CMH an K-ASA are not applicable to Method's business model.
Starting from 03.2024, K-COH is computed via an internally-developed, net procedure. So far, however, its relevance has been negligible.
Once the various K-factor requirements have been computed as indicated above, corporate regulatory capital is determined in line with IFPR provisions as max (PMR, FOR, KFR), with PMR=permanent min requirement (750k GBP, in the case of Method) and FOR=fixed overhead requirement (so far computed based on Dec24 audited financials). Provided that PMR is expressed in GBP terms, while both FOR and KFR and EUR-denominated, the daily ECB EUR/GBP rate is used for conversion (an internally developed automatic procedure retrieves it directly from ECB website every morning).
As previously referred to, all foregoing computations are recorded/automatically logged and available for consultation anytime on demand.
Market risks: Given the company's core business, market risk certainly represents one of the main sources of uncertainty to be managed effectively. Market wide and specific risk factors are closely monitored by the risk Management Department on a real time basis on all the company's accounts (both individually and at the aggregate level), to make sure that the risk limits (VaR, Stop Loss, Maximum Position Held, Regulatory Capital requirements) are not breached. Daily checks (t+1) are further carried out based on End of Day (t) positions/traders/orders, with a special focus on Stress Testing and Market Abuse. The internally adopted Stress Testing Programme and Market Abuse Process are kept up to date by the Risk Management Department and are always available for consultation upon demand. Even assuming that adverse market conditions materialise on worldwide financial markets, causing severe instability and uncertainty, the company has an internal risk management framework in place to face the resulting turmoil effectively, without seriously undermining its going concern.
Liquidity risks: Stress tests carried out through 2025 have revealed that the Firm is robust enough to face extreme business conditions (both at an idiosyncratic and at a market wide level) over the medium terms, thus corroborating the view that the maintained liquidity levels are adequate to survive even a severe turmoil. Stress Testing is further carried out within the scope of the yearly ICARA.
Financial crime and fraud risks: The company conducts a yearly (at least) review of the risk that it may be used for financial crime: the whole process is overseen by the internal MLRO who reports directly to the senior management team. In general, the company is thought to be at a low risk profile for being used by external parties for money laundering or by internal parties for fraud. This is due to:
-the tripartite arrangement for the funds it manages where there is an administrator and electronic trade records.
-trading activity carried out predominantly with other EEA or equivalent regulated institutions on regulated markets
-senior management responsibility for the review of systems and controls over time
-the oversight by senior management of third parties
-staff periodic (at least yearly) training on market abuse, money laundering, bribery and cyber-security
Given the internal risk management framework detailed above and considering the final outcomes resulting from internal periodic stress resting, the company is very likely to be able to face potential future uncertainties promptly and effectively, without undermining its going concern to any material extent.
Further details relating to the risks are referred to in note 15 of the financial statements.
The company measures turnover, gross profit and net profit as its financial key performance indicators, with an additional focus on Return on Equity (ROE).
KPIs 2025 2024
Turnover 18,866,180 9,037,777
Gross profit 13,808,747 3,811,434
Net profit/(loss) 584,753 (632,976)
ROE 0.01% (-0.14%)
In the light of the above indicators, the directors are satisfied with the turnover and results achieved during the year.
Directors' statement of compliance with duty to promote the success of the Company
This statement, explains how the Directors have engaged with employees, suppliers, customers and other stakeholders: and have had regard to employee interests, the need to faster the company's business relationships with suppliers, customers and others, and the impact of the company's operations on the community and the environment.
General confirmation of Directors' duties
Method's focus is on activities that enable it to promote the interest of its shareholders. This includes the development of strategy and the assessment of material factors impacting the sector in which the company operates, the monitoring of executive action and the continuing assessment of the operational activity of the company.
The Directors recognise that Method's employees are fundamental and core to the business and delivery of the company's goals and ambitions. The success of the business is dependent upon the attraction and retention of well trained and motivated employees. The company ensures that employees are trained to the standards required for the company's trading activities in regulated markets. The Directors consider the implications of the decisions that it makes on the company's employees whenever relevant and feasible.
The need to foster the company's business relationships with suppliers, customers and others
Method has limited third party customers as the majority of its revenue is generated from proprietary trading in regulated markets. Where the company has third party customers the Directors of the company are in regular contact with those customers to discuss investment strategy, risk and opportunity relevant to the investment of funds. The relationships with third party customers have been built up over time.
Method's suppliers provide the business with both goods and services.
The impact of the company's operations on the community and the environment
As discussed above the Directors are mindful of the supplies that it consumes and the impact these may have on the environment and wider stakeholders in society.
The Directors are also mindful of the fact that the firm's operations involve trading in regulated markets and that through its on going adherence with its FCA compliance obligations and internal control environment it contributes to act as a responsible trader in the markets and thus meets its legal and moral duty to the wider community of stakeholders in society.
The need to act fairly between members of the company
Method only has one shareholder and so will always act fairly regarding the interests of its member. The Directors consider which course of action enables delivery of the company's strategy both operationally and in the longer term.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
During the year the company had a branch in Italy.
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:
The auditor, Perrys Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Method has continued to communicate with its stakeholders as appropriate. The company has limited third party customers with whom the directors communicate with on a continuing basis. As trading brokerage most of the company's activities are direct with the relevant regulated market. Method's suppliers provide services and goods to the company on normal commercial terms and Method communicates with its suppliers
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; and
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.
Method Investments & Advisory Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 7 Marylebone Lane, London, United Kingdom, W1U 1DB.
The financial statements are prepared in euros, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest €1.
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.
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, 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.
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.
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.
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 payments 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. Amounts 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.
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 subsequently 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 through 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.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
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.
Interest income
Interest income is recognised in profit or loss using the effective interest method.
Finance & borrowing costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Debtors and creditors
Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors
Short-term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Counterparty debtors and creditors
Balances with clients and counterparties in respect of unsettled transactions are included in trading book debtors and trading book creditors at their gross trade value. They reflect the company's legal right and obligation at the balance sheet date.
In the application of the company’s accounting policies, the directors are 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 major sources of estimation uncertainty impacting the year end carrying amounts are as follows:
(a) fair value gains and losses on financial instruments
(b) fair value gains and losses on investments in subsidiaries held as an investment portfolio
(c) fair value gains and losses of investments in associates
The carrying value of investments in subsidiaries and associates is disclosed in note 12
The carrying value of investments in financial instruments is disclosed in note 15
The whole of the turnover is attributable to the provision of investment management services, advisory services and proprietary trading income.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The actual (credit)/charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2025 are as follows:
Details of the company's associates at 31 December 2025 are as follows:
The internally adopted Risk Management Program mainly focuses on 4 risk areas.
1. Market Risk (including Specific Risk, General Market Risk, Foreign Exchange Risk, Interest Rate Risk and Price Risk.
2. Liquidity Risk
3. Credit Risk and Large Exposures (Concentration Risk)
4. Operational Risk (including Legal Risk, Reputational Risk and IT Cyber-Security risk)
These are deemed to be of material importance to the Firm, given the current business profile of the company and considering the macroeconomic environment where it operates.
Clearly enough, the foregoing risk categories are monitored both individually and jointly, so as to highlight potential interdependences that could give risk to further adverse exposures.
Risk assessment is carried out daily (online and end of day) by the Risk Management Department and periodically (usually monthly) by the Board of Directors (BoD) and by the Risk Committee (RC).
In particular, daily risk assessment focuses on Market Risk and aims at checking whether all the Firm's accounts operate within the defined risk limits (defined by the BoD and ratified by the RC), while the periodical risk assessment takes into account internal/external business contingencies and develops a detailed guidance outlining the level and type of risks deemed to be acceptable.
Market Risk
Specific and General Market Risk: Based on MIFIDPRU provisions, the Risk Management Department monitors all the trading book positions in real time (both at the individual and aggregate/company level), to make sure that existing exposures do not exceed the risk thresholds established by the Board and further checks that the related regulatory capital requirements are reasonably above regulatory minima. Online computations are logged on company's servers and are always available for consultation upon demand.
Interest Rate Risk: The company's exposure to interest rate fluctuations both on its cash positions and on its borrowings is limited. In particular, special attention is paid to trading book positions that are substantially hedged in order to minimise the potential adverse impact of a sudden interest rate swing. At December 2025, the company's overall position on Government Bonds, Bonds, Shares, ETFs, Options, Futures and Certificates amounts to EUR 13,140,017.
Foreign Exchange Rate Risk: The company has bank accounts/revenues denominated in foreign currencies and is thus exposed to some FX risk.
FX exposures hence arise from normal business activities being denominated in different currencies, with primary non EURO exposures being versus the GBP and the USD.
As established by the Senior Management, hedging against Foreign Exchange Rate Risk falls under the full responsibility of the various traders, whose daily (non EURO denominated) activity is further monitored on a continuous basis by the Back Office, the Accounting and the Risk Management Departments.
Price Risk: The company is minimally exposed to price risk, as its primary business is trading any positions held are most liquidated within a few days. The company's investment policy further requires trading positions to be fully hedged against market fluctuations (with the sole exception of some Algo strategies, that are either required to close out all positions at market close, or to hold only a few K EUR at most) and preferably placed in highly liquid, low risk securities (such as highly rated government bonds).
Liquidity Risk: The internally adopted Liquidity Management policy requires maintaining sufficient liquid resources to eliminate the risk that liabilities cannot be met as they fall due or that financial resources can only be secured at excessive cost: daily cash management is thus implemented through a close and continuous focus on liquid funds, carried out, in particular, by the Accounting Department in cooperation with the Back Office team.
Based on FCS previsions (MIF002), the firms liquidity buffer is calculated on a quarterly basis. Any issues arising in respect of the financial or liquidity situation in the intervening periods are reported to senior management for action to be taken as required.
Liquidity management under normal business conditions: The company keeps an amount in its bank accounts at all times, with any cash required to be held for working capital purposes being held over and above this amount. This policy ensure that, under normal business conditions, the firm will always expect to have sufficient liquidity in order to be able to meet its liabilities as they fall due. Furthermore, the assets currently held are denominated in currencies which are readily convertible into other currencies in which liabilities may be denominated (typically UK Sterling, US Dollar), so that no liquidity risk is presented by this either.
Liquidity management under stressed conditions: In addition to the daily and monthly checks described above, the company periodically considers the liquidity risk it may be exposed to under extreme market scenarios (stress testing). These are documented within its ICARA, which are prepared with the support of all departments and finally approved by the BoD.
Credit risk and Large Exposures
Credit risk refers to all potential losses the company may suffer in case a given counterparty fails to meet is contractual obligations. Stated in alternative terms, Credit risk can be conceived as the risk of loss associated with an obligor's inability to fulfil its payment obligations. In practice, the foregoing definition includes both:
(i) Counterparty exposure risk concentration risk: Defined as the risk of loss arising from large individual exposures and significant exposures to groups of counterparties whose likelihood of default is driven by common underlying factors, e.g. business sector, economy, geographical location, instrument type.
(ii) Counterparty default risk: Defined as the potential loss arising from a counterparty's failure to meet the terms of any contract or otherwise fail to perform as agreed.
The foregoing categories of credit risk refer both to the trading and to the non-trading books and can potentially pose material issues to the company. In order to grant effective risk monitoring, the aforementioned risks are managed through a pervasive internal policy, structured as follows:
Before dealing with any new counterparty, the Compliance Department verifies whether is either authorised and regulated by the FCA (or an equivalent overseas regulator) or listed on a recognised investment exchange and submits the new counterparty to the RC for the official approval;
Once the counterparty is officially accepted (the Compliance Department distributes a full list of approved counterparties to the staff in a monthly basis), the Risk Management Department checks that the corresponding trading book position does not exceed the officially established risk threshold, especially in all those cases where the said position has been kept open for more than 10 days;
Senior Management is always kept informed of all large exposures, deemed to give rise to potential credit issues, so to allow for immediate remedial action whenever this is thought to be necessary.
Based on the current business environment, credit risk is considered to be low, as the vast majority of the company's counterparties are large financial institutions. However, continuous attention is paid to settlement statistics and exposure to all counterparties with outstanding unsettled transactions.
At December 2025, the company's largest exposures were predominantly held towards large financial institutions. This is fully consistent with the firm's main business.
At December 2025, the company's largest exposure to a single counterparty was held towards a large EU financial Institution.
Operational Risk
Please refer to "Principal Risks and Uncertainties" section in the Strategic report.
Clearly enough, in addition to the above risk categories, the company also pays particular attention to its capital (defined as equity + reserves) to make sure it is able to operate as a going concern. Following a strict prudential approach, the internal Capital Management policy also requires the company to hold surplus capital over FCA requirement on a continuous basis: the available capital has thus met the minimum capital requirements set out by the regulator all through 2025.
The long-term loans are secured by fixed charges and a negative pledge over the assets of the company.
The following are the major deferred tax liabilities and assets recognised by the company:
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year, the company incurred no costs (2024:€60,000) and generated no sales (2024: €29,319) from its associate Fasanara Capital Limited.
At the year end, Method Asset Management S.a.r.l., a subsidiary of the company owed €5,020 (2024: €5,021).
At the year end, Gordon 3 UK Ltd, a fellow subsidiary, owed €4,584,347 (2024: €2,038,185) included in other debtors and €3,420,000 (2024: €3,420,000) included in financial instruments. During the year, the company incurred costs of €46,162 (2024: €850), from Gordon 3 UK Ltd.
At the year end, the company was owed €1.574 (2024: €659) from its associate, Octagon Advisory Ltd.
At the year end, the company was owed €102,966 (2024: €102,966) from Msquared.
During the year, the company incurred costs of €4,022 (2024: nil) from its associate, Agave Investments Holdings.
At the year end, the company was owed €47,564 (2024: €47,564) from GIST Initiatives Limited, a company with which it shares a common director who shares joint control with the related company.
There is also a short term advance to Mr G Dessi of €166,743 payable on demand (2024: €196,671). Interest is charged on the loan which for the year ended 31 December was at the official HMRC rate of 3.75%
During the year ended 31 December 2025, the Company generated a profit after tax of € 549, 676. By resolution of the Board of Directors dated 18/08/2026, no dividend has been declared in respect of the year, and the Company's profit for the year has been retained in full and transferred to reserves.
This is consistent with the Company's ongoing approach to prudential capital management as a firm authorised and regulated by the Financial Conduct Authority (FCA) and classified as a non-Small and Non-Interconnected (non-SNI) investment firm under the UK Investment Firm Prudential Regime. The Company maintains an Internal Capital Adequacy and Risk Assessment (ICARA) process, under which the adequacy of the Company's own funds is assessed on an ongoing and forward-looking basis, including against reasonably foreseeable adverse scenarios.
The Directors consider that retaining the current year's profit strengthens the Company's own funds and regulatory capital position and is consistent with the Company's obligations under the FCA's MIFIDPRU Handbook.
We have audited the financial statements of Method Investments & Advisory Ltd (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, 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).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and FCA regulations. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.