Company No:
Contents
| DIRECTORS | Charles Kane Antelme (Resigned 24 March 2025) |
| The Honourable James Henry Morys Bruce (Resigned 31 December 2025) | |
| Charles Vincent Ellingworth | |
| John David Gordon | |
| Harry Michael Charles Morley (Appointed 01 January 2025) | |
| Andrew John Shirley Ross |
| SECRETARY | Anna Jane Lewis |
| REGISTERED OFFICE | 10 Duke Of York Square |
| London | |
| SW3 4LY | |
| United Kingdom |
| COMPANY NUMBER | 03008401 (England and Wales) |
| AUDITOR | BDO LLP |
| Statutory Auditor | |
| 55 Baker Street | |
| London | |
| W1U 7EY |
The directors present their Strategic Report for the financial year ended 31 December 2025.
REVIEW OF THE BUSINESS
**Cazenove investment portfolio**
2025 saw the investment portfolio make a return of +10.6% in comparison to the inflation benchmark which returned +6.5%.
This return was ahead of the short-term industry comparator, the Asset Risk Consulting (ARC) Steady Growth Private which returned +9.8% over the same period but lagged the Investment Association (IA) Mixed Shares 40-85% shares indices which returned 11.6%.
Over the longer time period of ten years, the portfolio (+99.7%) is marginally behind the inflation benchmark (+103.7%) whilst remaining comfortably ahead both the ARC (+74.1%) and IA (+88.1%) industry comparators.
2025 was a year of strong returns across most financial markets, but was also characterised by extraordinary volatility, major policy shifts, and pronounced geopolitical events. Equities, credit, bonds, and emerging market assets all posted robust gains, underpinned by steady global growth, optimism about the AI revolution, and a turn towards looser monetary policy by most central banks. However, investors needed to navigate significant episodes of turmoil, particularly linked to tariffs and political uncertainty. Equities delivered strong performance globally, driven by resilient economic data and hopes for accelerated AI adoption, whilst bond, commodity and currency markets were eventful and displayed more divergent performance between the individual sub-asset classes.
The year began with the inauguration of Donald Trump as president in January 2025, with optimism regarding his business-friendly stance quickly reversing into deepening concerns on potential tariffs, culminating in the revealing of reciprocal tariffs on global trade partners on “Liberation Day” on the 2nd April, led to market falls. This was accompanied by a slowdown in some key macro indicators as well as challenge to the US’s dominance in artificial intelligence after the emergence of a rival Large Language Model (LLM) from Chinese company Deepseek, leading to questions over the “exceptionalism” of the US economy. Sentiment then turned again following a 90-day tariff delay a week later, with the US subsequently reaching deals with the EU and Japan that set the rate at 15%, while other nations and sectors faced higher tariff rates. Overall, the impact of US tariffs was perceived to be less severe than initially feared, whilst general resilience in economic data coupled with accommodative fiscal and monetary policy moves globally helped lift investor sentiment. Further expansive fiscal commitments included the “One Big, Beautiful Bill” in the US and increasing spending commitments in Europe on defence and infrastructure particularly in Germany following the election in February. China also announced a combination of monetary and fiscal measures over the period to help address the structural growth issues it had been facing from falling property markets and bank lending. The US Federal Reserve (Fed) further supported markets by reducing its central interest rates by 0.75% over the year, whilst both the Bank of England and European Central Bank reduced rates by 1%. These factors helped to offset the potential negative impact of future tariff rises on growth and inflation, whilst other concerns including the ongoing conflicts in the Middle East and Ukraine and rising global debt levels could not arrest further market rises.
Within equities the MSCI All Country World index rose strongly, up 21%, with all major regional and sector indices posing positive returns for the year. The S&P 500 index ended up 19%, marking the fourth consecutive year of double-digit returns, a streak only seen three times in the last 100 years. The “Magnificent Seven” and other AI related stocks were the biggest contributors to the pattern of performance, outperforming in rising markets and falling further during market falls, with the former group producing returns overall of 26%. In a departure from recent years however, World ex US markets outperformed the US after stronger performances in the first and fourth quarters, ending up as a group up 24%. Emerging markets were the standout performer, led by China which was up 35% despite a more challenging last three months, whilst European and Japanese markets were both up a very respectable 20% and 25% respectively.
Global bonds overall had their best year since 2020, but the cause of that performance differed across major markets. US Treasuries returned 6.2% benefitting from three consecutive Fed rate cuts triggered by weakening labour market data, with 10-year yields falling 40bps. German Bunds, however, struggled as fiscal stimulus boosted yields (+49bps), producing their worst total return since the pandemic. UK 10-year gilt yields meanwhile ended at similar levels to where they began, at just under 4.50%, although this masks significant volatility driven by tariff concerns, softer economic data and the build-up and subsequent reaction to the spring and autumn budgets. The bigger narrative, globally, was around the shape of yield curves, with shorter dated yields falling significantly in line with inflation and central bank cuts whilst longer dated yields remained anchored higher due to sovereign sustainability concerns. Within commodities, precious metals, especially gold up 65% and silver up 148%, posted their best annual gains since 1979, as investors sought havens against the backdrop of geopolitical risk, central bank rate cuts, and heightened inflation concerns. This surge also reflected fears about long-term currency debasement as several central banks moved to diversify reserves away from US dollars. Oil, by contrast, saw prices sink for a third consecutive year, with Brent down -20% to test the $60 level, impacted by the US-Russia rapprochement, cyclical softness, and a short-lived price spike during the Middle East conflict. Finally, the period also saw significant volatility in the US dollar, which fell -9.4% on a trade weighted basis for the year following its worst first half year performance since 1973, with this currency dynamic influencing relative returns for international investors in US assets.
The equity holdings overall produced positive returns over the period. In contrast to recent years, the biggest contributions came from regional Asian, Emerging Market and European as opposed to US fund holdings. Schroder Asian Alpha Plus and M&G Japan were standout performers, with both beating their regional benchmarks, whilst Blackrock European Dynamic and Polar UK Value Opportunities both produced strong double-digit returns but lagged on a relative basis. There was variation with the US and Global fund holdings depending on the exposure to technology, with the passive S&P 500 ETF and active T Rowe Tech Global Technology outperforming the other active US holdings. Meanwhile the fund’s active healthcare exposure, initially through Wellington and then Alliance Bernstein, didn’t fare as well as the healthcare stocks reacted poorly to the Trump administration’s proposed policy changes to Medicare and drug pricing over the period.
The non-equity portion of the portfolio generated robust returns. Government bond returns were positive in aggregate, whilst within credit Vontobel 24 Absolute Return and Morgan Stanley Global Asset Backed Securities delivered strong returns. Elsewhere Gold did particularly well spurred by increased central bank buying and nervousness about Trump’s policies and global debt levels, whilst broader commodities exposure through Legal & General Enhanced Commodities was also a positive contributor. It was a very good period for AQR Alternative Trends which benefitted from the greater prevalence of cross-asset market trends and heightened volatility. Schroders Diversified Alternative Assets meanwhile experienced equity like volatility at times but saw increased Merger & Acquisitions activity came back to the sector and help narrow discounts in some areas in 2025.
Key trends in portfolio activity over the period include:
•Dynamically managing the overall allocation to risk assets (reducing equities in January after the “Trump rally” of Q4, buying high yield in April 2025 as spreads widened post Liberation day)
•Shifting underlying exposure within equities (diversifying exposure away from the US incrementally towards Europe and Asia, alongside readjusting thematic exposure to emphasise technology and healthcare)
•Within diversifiers, continuing to manage government bond duration dynamically whilst holding a basket of select alternatives (including gold, broader commodities, real assets and absolute return funds)
**Private investments portfolio**
The private equity portfolio is mature and well diversified across strategy and geography. Excluding cash, the portfolio comprises a series of commitments to private investments funds managed by 26 high quality firms of which 10 relationships are in ‘run-off’ and no longer considered active.
Portfolio performance since inception has been robust at the total portfolio level, but performance since 2022 has been weaker especially when compared to public markets. Consistent with the wider industry, a prolonged period of elevated interest rates has exerted pressure on the portfolio, particularly on pre-revenue and pre-profit businesses within the venture capital category that continue to be repriced/revalued in light of more realistic and comparable multiples. In addition, valuations for private equity have seen little uplift in recent years as the liquidity environment remains subdued (low volumes of Mergers and Acquisitions and Initial Public Offering activity). 2025 was also a year of geopolitical uncertainty following trade disruptions and tariff uncertainties that proved difficult for both growth and investment. Overall, performance from the portfolio was broadly flat in 2025.
There were pockets of liquidity in 2025 but managers in the portfolio generally returned less capital to LPs during the year than anticipated. As a result, the portfolio was cashflow negative in 2025. However, this shortfall was met with cash on hand meaning that no capital calls were issued by the GP in 2025.
**PRINCIPAL RISKS AND UNCERTAINTIES**
**Cazenove investment portfolio**
On the 1 January 2021, the Investment Objectives of the portfolio were amended from a long-term Strategic Assets Allocation framework, to a new Investment Objective and performance target of achieving UK Inflation +4% over a rolling 5-7 year periods. This target was amended to inflation +3.5% from January 2024. Inflation will be measured by the UK Consumer Price Index (UK CPI).
With regards to risk, the Investment Portfolio is to be managed with an upper limit of 80% volatility of global equity markets (as measured by the MSCI All Country World Index) on an ex-Ante basis.
In order to meet the long-term Investment Objective, the Investment Portfolio will be invested predominantly in global equity markets, but also continue to invest in other assets, including fixed income, commodities and absolute return focussed funds, held with the objectives of reducing volatility and moderating risk.
As at 31 December 2025, the ex Ante volatility of the Investment Portfolio was 73% of the volatility of global Equity markets (below the upper limit of 80%). Over the last five years, the rolling portfolio volatility (over the last five years) has averaged 72%, with a lowest reading of 63.5% and the highest 73.4%.
Further diversification is provided by the multi-manager approach; investing in third-party funds to gain access to asset classes. This limits ‘manager risk’ as investments are spread across fund management houses (currently over 25). As of 1st October 2024, 30% of the equity allocation (approximately 21% of the overall portfolio) was allocated to a strategy managed by the Schroders Global Equity team. The strategy consists of approximately 80 stocks and they use the following guidelines as part of their risk management approach: 1) a new purchase of a stock cannot be larger than 5% of the strategy weighting, 2) no position should ever be larger than 7% of the strategy weighting, 3) the sector exposure should never be more than +/-10% of the corresponding index (MSCI AC World Index), and 4) the regional exposure should never be more than +/-15% of the corresponding index.
Where possible, investments are made in a Unit Trust structure, which is regulated by the UK Financial Conduct Authority (FCA). This structure is subject to risk controls and legislation on the types and limits of investments that can be held and are governed by the FCA’s COLL Rules (Collective Investment Schemes Sourcebook).
Overall investment decisions are made by Cazenove Capital which are part of Schroders Group. Cazenove Capital are responsible for fund selection and ensuring that the risk controls are adhered too. Overall investment risk, performance and asset allocation is monitored by Cazenove Capital, whilst this is overseen by a non-executive Board member with specific responsibility for non-property related investments on a frequency no less than quarterly. Full written reports are provided to the Board quarterly and presentations are given on a six monthly basis.
Fund selection at Cazenove Capital is carried out by a team, who utilise sophisticated software to monitor risk so as to ensure that the portfolio accurately reflects the investment strategy and that an appropriate level of risk is being taken in comparison to global equity markets.
**Private investments portfolio**
The private investment portfolio is managed with the objective of outperforming public markets (MSCI All Country World Index) by a substantial premium per annum. The target premium for illiquidity is 300-500 basis points per annum in excess of public markets over the long term. Given the high return target for the portfolio, the portfolio is inherently risk-seeking and managers in the portfolio regularly underwrite investments with high operational complexity, science/technology risk, and business model & execution risk. In order to become comfortable with these risks, Cambridge Associates conducts extensive due diligence on managers to ensure that private investment managers have appropriate expertise and resources to manage investments effectively using repeatable strategies for creating value. Portfolio-level risk is managed through significant diversification across the portfolio by sector, geography and strategy, and by ensuring sufficient vintage year diversification (ensuring a relatively consistent commitment pace each year). With the majority of exposure denominated in USD, significant currency volatility poses a risk to the portfolio, especially as no hedging is planned.
Approved by the Board of Directors and signed on its behalf by:
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Charles Vincent Ellingworth
Director |
John David Gordon
Director |
The directors present their report and the financial statements for the financial year ended 31 December 2025.
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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(Resigned 24 March 2025) |
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(Resigned 31 December 2025) |
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(Appointed 01 January 2025) |
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DIRECTORS' INDEMNITIES
Financial instruments - objectives and policies
The company's principal financial instruments consist of financial assets and liabilities such as cash, trade creditors and other debtors. These arise directly from its operations.
Credit risk
Investments of cash surpluses are made through reputable banks with suitably high credit ratings. Receivables are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Liquidity risk
The company manages its cash and term deposit balances to maximise interest income whilst maintaining sufficient liquid resources to meet the operating needs of the company and its subsidiaries.
Foreign currency risk
The principal foreign currency exposure arises from foreign currency cash balances and overseas investments.
Going Concern
The directors have considered the appropriateness of adopting the going concern basis in preparing the financial statements for the year ended 31 December 2025.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence at least to 31 August 2027. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Disclosure of information to the auditors
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made inquiries of fellow directors and the Company's auditor, each director has taken all steps that he/she is obliged to take as director in order to make himself/herself aware of any relevant audit information and to establish that the auditor is aware of that information.
AUDITOR
BDO LLP have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting, in accordance with section 485 of the Companies Act 2006.
Approved by the Board of Directors and signed on its behalf by:
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Charles Vincent Ellingworth
Director |
John David Gordon
Director |
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), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that financial 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
* 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 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. The directors 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.
Report on the audit of the financial statements
In our opinion the financial statements:
•give a true and fair view of the state of the Company’s affairs as at 31 December 2025 and of its profit for the year then ended;
•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Cadogan Settled Estates Limited (“the Company”) for the year ended 31 December 2025 which comprise of the following:
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Notes to the financial statements
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
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
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.
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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company's ability to continue as a going concern.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. 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.
Report on other legal and regulatory requirements
Other Companies Act 2006 reporting
In our opinion, based on the work undertaken in the course of the audit:
•the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
•the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.
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.
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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management.
Extent to which the audit was 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:
Non-compliance with laws and regulations
Based on:
•Our understanding of the [Company/Group] and the industry in which it operates;
•Discussion with management and those charged with governance; AND
•Obtaining an understanding of the Company’s policies and procedures regarding compliance with laws and regulations.
we considered the significant laws and regulations to be Companies Act 2006, United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and UK tax legislation.
The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation.
Our procedures in respect of the above included:
•Review of minutes of meetings of those charged with governance for any instances of non-compliance with laws and regulations;
•Review of financial statement disclosures and agreeing to supporting documentation; and
•Review of legal expenditure accounts to understand the nature of expenditure incurred.
Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
•Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
•Obtaining an understanding of the Company’s policies and procedures relating to:
oDetecting and responding to the risks of fraud; and
oInternal controls established to mitigate risks related to fraud.
•Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud;
•Discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and
•Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls.
Our procedures in respect of the above included:
•Testing a sample of journal entries throughout the year, which met defined risk criteria, by agreeing to supporting documentation;
•Testing a sample of journal entries throughout the year which do not meet a defined risk criteria, by agreeing to supporting documentation (to address the variability within management override); and
•Assessing significant estimates made by management for bias.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of 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.
For and on behalf of
Statutory Auditor
London
W1U 7EY
| Note | 2025 | 2024 | ||
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| Administrative expenses | (
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| Other operating income | 3 |
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| Income from shares in a Group undertaking |
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| Income from other fixed asset investments | 4 |
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| Other non-operating income | 9 |
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| Profit before interest and taxation | 128,792,606 | 115,776,792 | ||
| Interest receivable and similar income | 4 |
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| Interest payable and similar expenses | 4 | (
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| Other finance costs | 4 | (
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| Profit before taxation |
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| Tax on profit | 8 | (
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| Profit for the financial year |
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| Fixed assets | ||||
| Investments | 11 |
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| 1,020,118,449 | 912,333,704 | |||
| Current assets | ||||
| Debtors | 12 |
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| Cash at bank and in hand | 13 |
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| 19,740,578 | 19,489,709 | |||
| Creditors: amounts falling due within one year | 14 | (
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| Net current assets | 19,569,192 | 19,248,602 | ||
| Total assets less current liabilities | 1,039,687,641 | 931,582,306 | ||
| Provision for liabilities | 15 | (
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| Net assets | 927,815,001 | 836,358,052 | ||
| Capital and reserves | 17 | |||
| Called-up share capital |
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| Capital redemption reserve |
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| Profit and loss account |
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| Total shareholder's funds | 927,815,001 | 836,358,052 |
The financial statements of Cadogan Settled Estates Limited (registered number:
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Charles Vincent Ellingworth
Director |
John David Gordon
Director |
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The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
The company is a private company limited by share capital incorporated in England and Wales.
The address of its registered office is:
10 Duke of York Square
London
SW3 4LY
The single entity financial statements for Cadogan Settled Estates Limited were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies.
The financial statements are presented in Sterling which is the functional currency of the company and rounded to the nearest £.
The directors have considered the appropriateness of adopting the going concern basis in preparing the financial statements for the year ended 31 December 2025.
The key asset of the company include the Cazenove portfolio valued at c. £812m as at 31 December 2025. The portfolio is well diversified and closely monitored for risk and volatility. Furthermore, most of the investments can be realised at short notice. Based on this assessment, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence until 31 August 2027. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Group accounts exemption s400
The Company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Cadogan Settled Estates Limited is a wholly owned subsidiary of Cadogan Settled Estates Holdings Limited and the results of Cadogan Settled Estates Limited are included in the consolidated financial statements of Cadogan Settled Estates Holdings Limited which are available from 10 Duke of York Square, London, SW3 4LY.
Dividends and interest received from investments are recognised in the profit and loss account. Dividends are recognised on the date they become ex-div without making any adjustment for amounts accrued at the dates of purchase and sale of the securities. Interest is recognised on the accruals basis.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
The company has recognised the deferred tax liability that arises as a result of temporary differences between the recognition of gains on revaluation in the accounts and tax return.
Deferred tax has been calculated using the tax rates that are expected to apply in the periods in which timing differences reverse.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Investments
Investments in equity shares and other securities which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares and other securities which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Subsidiaries, jointly controlled entities, and associates where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Subsidiaries, jointly controlled entities, and associates where fair value cannot be measured reliably are measured at cost less impairment.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.
The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are outlined below.
The valuation of investments is subjective and hard to value investments require a material degree of estimation.
Management estimation is required to determine the tax rates that are expected to apply in the periods in which timing differences reverse.
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|
| Interest receivable and similar income |
|
|
|
| Interest payable and similar expenses | (
|
|
|
| Other finance costs | (
|
|
|
| 7,040,150 | 13,934,959 |
During the year, the Company agreed to waive £5,000,000 of a loan due from Cadogan Estates (Agricultural Holdings) Limited, a connected company.
Accordingly, the balance of £5,000,000 was written off and recognised as a loss in the Statement of Profit or Loss, classified within other finance costs.
The carrying amount of loans to Cadogan Estates (Agricultural Holdings) Limited was £6,214,758 at 31 December 2025 (2024 - £10,364,758).
Income from other fixed asset investments
| 2025 | 2024 | ||
| £ | £ | ||
| Income from fixed asset investments: | |||
| Other investments |
|
|
Interest receivable and similar income
| 2025 | 2024 | ||
| £ | £ | ||
| Bank interest |
|
|
An analysis of the auditor's remuneration is as follows:
| 2025 | 2024 | ||
| £ | £ | ||
| Fees payable to the company’s auditor and its associates for the audit of the company's annual financial statements: | 65,758 | 60,440 | |
| Total audit fees |
|
|
|
| 2025 | 2024 | ||
| Number | Number | ||
| The average monthly number of employees (including directors) was: | |||
| Directors |
|
|
|
| Employees |
|
|
|
|
|
|
Their aggregate remuneration comprised:
| 2025 | 2024 | ||
| £ | £ | ||
| Wages and salaries |
|
|
| 2025 | 2024 | ||
| £ | £ | ||
| Directors' emoluments |
|
|
| 2025 | 2024 | ||
| £ | £ | ||
| Current tax on profit | |||
| UK corporation tax |
|
|
|
| Foreign tax |
|
|
|
| Total current tax |
|
|
|
| Deferred tax | |||
| Origination and reversal of timing differences |
|
|
|
| Total deferred tax |
|
|
|
| Total tax on profit |
|
|
The tax assessed for the year is lower than (2024: lower than) the standard rate of corporation tax in the UK:
| 2025 | 2024 | ||
| £ | £ | ||
| Profit before taxation | 124,265,653 | 116,081,386 | |
| Tax on profit at standard UK corporation tax rate of 25% (2024: 25%) |
|
|
|
| Effects of: | |||
| Decrease in current tax from adjustment for prior periods | (312,291) | (17,493) | |
| Tax decrease from effect of dividends from UK companies | (15,421,674) | (13,119,681) | |
| Other tax effects for reconciliation between accounting profit and tax expense | 2,715,029 | 1,522,277 | |
| Total tax charge for year | 18,047,477 | 17,405,450 |
| 2025 | 2024 | ||
| £ | £ | ||
| Gain on revaluation of fixed asset investments | 66,593,541 | 62,790,037 |
| 2025 | 2024 | ||
| £ | £ | ||
| Amounts recognised as distributions to equity holders in the financial year: | |||
| Interim dividend for the financial year ended 31 December 2025 of £0.37 (2024: £0.75) per ordinary share | 14,761,227 | 30,523,050 | |
| 2025 | 2024 | ||
| £ | £ | ||
| Subsidiary undertakings |
|
|
|
| Other investments and loans |
|
|
|
| 1,020,118,449 | 912,333,704 |
Investments in subsidiaries
| 2025 | |
| £ | |
| Cost | |
| At 01 January 2025 |
|
| Revaluation | 2,495,728 |
| At 31 December 2025 |
|
| Carrying value at 31 December 2025 |
|
| Carrying value at 31 December 2024 |
|
| Listed investments | Other investments | Total | |||
| £ | £ | £ | |||
| Cost or valuation before impairment | |||||
| At 01 January 2025 |
|
|
|
||
| Additions |
|
|
|
||
| Disposals | (
|
|
(
|
||
| Movement in fair value |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Carrying value at 31 December 2025 |
|
|
|
||
| Carrying value at 31 December 2024 |
|
|
|
Investments in shares
| Name of entity | Registered office | Principal activity | Class of shares |
Ownership 31.12.2025 |
Ownership 31.12.2024 |
|
|
10 Duke Of York Square, London, United Kingdom, SW3 4LY | Holding Company |
|
|
|
|
|
10 Duke Of York Square, London, United Kingdom, SW3 4LY | Property Investment |
|
|
|
|
|
10 Duke Of York Square, London, United Kingdom, SW3 4LY | Farming, fishing, and estate management in Scotland |
|
|
|
|
|
10 Duke Of York Square, London, United Kingdom, SW3 4LY | Renewable energy generation |
|
|
|
|
|
1 Le Marchant Street, St. Peter Port, Guernsey, GY1 4HP | Equity Investment |
|
|
|
| 2025 | 2024 | ||
| £ | £ | ||
| Amounts owed by parent undertakings (note 19) |
|
|
|
| Short term loans to group companies (note 19) |
|
|
|
| Corporation tax |
|
|
|
|
|
|
| 2025 | 2024 | ||
| £ | £ | ||
| Cash at bank and in hand |
|
|
| 2025 | 2024 | ||
| £ | £ | ||
| Amounts owed to own subsidiaries (note 19) |
|
|
|
| Taxation and social security |
|
|
|
| Accruals |
|
|
|
|
|
|
| Deferred taxation | Total | ||
| £ | £ | ||
| At 01 January 2025 |
|
95,224,254 | |
| Charged to the Profit and Loss Account |
|
16,648,386 | |
| At 31 December 2025 |
|
111,872,640 | |
Deferred tax
| 2025 | 2024 | ||
| £ | £ | ||
| Accelerated capital allowances |
|
|
|
| Provision for deferred tax |
|
|
The carrying values of the company’s financial assets and liabilities are summarised by category below:
| 2025 | 2024 | ||
| £ | £ | ||
| Financial assets | |||
| Measured at fair value through profit or loss | |||
| Investments in listed equity instruments (note 11) |
|
|
|
| Measured at cost less impairment | |||
| Unlisted investments |
|
|
|
| Measured at undiscounted amount receivable | |||
| Other debtors (note 12) |
|
|
|
| Amounts owed by Parent undertakings (note 12) |
|
|
|
| Short term loans to Group companies (note 12) |
|
|
|
| 862,669,088 | 922,706,024 | ||
| Financial liabilities | |||
| Measured at undiscounted amount payable | |||
| Amounts owed to own subsidiaries (note 14) | (
|
(
|
| 2025 | 2024 | ||
| £ | £ | ||
| Allotted, called-up and fully-paid | |||
|
|
|
|
|
| Presented as follows: | |||
| Called-up share capital presented as equity | 40,463,896 | 40,463,896 |
The profit and loss reserve includes all current and prior period distributable retained profits and losses.
The capital redemption reserve arose on the historic acquisition and consolidation of a subsidiary company.
Commitments
The company made capital contributions to CSEL (Guernsey) LP Inc of £nil (2024 - £nil) in the period. At the balance sheet date £53,800,000 (2024 - £53,800,000) had been paid to CSEL (Guernsey) LP Inc.
The capital commitments are for the purpose of making portfolio investments, satisfying expenses, and fulfilling the obligations to underlying Funds.
During the year, the company made further capital commitments to CSEL (Guernsey) LP of £15,000,000 (2024 - £15,000,000). The total amount contracted for but not provided in the financial statements was £127,200,000 (2024 - £112,200,000).
Transactions with group companies
Amounts owed by Parent undertakings
| 2025 | 2024 | ||
| £ | £ | ||
| Debtors: due within one year - Amounts owed by parent company |
|
|
Short term loans to group companies
| 2025 | 2024 | ||
| £ | £ | ||
| Short term loan to subsidiary |
|
|
Amounts owed to own subsidiaries
| 2025 | 2024 | ||
| £ | £ | ||
| Amounts owed to own subsidiaries |
|
|
Transactions with the entity’s directors (or members of its governing body)
Key management compensation
| 2025 | 2024 | ||
| £ | £ | ||
| Salaries and other short term employee benefits. |
|
|
The ultimate holding company is Cadogan Settled Estates Holdings Limited, which is registered in England and Wales and which is ultimately controlled by The Eighth Earl Cadogan's 6 December 1961 Settlement. The consolidated financial statements of Cadogan Settled Estates Holdings Limited may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.