Company Information
Contents
Strategic Report
For the year ended 31 December 2025
The Directors present their strategic report for Ratio Ventures Limited (“the Company”) for the year ended 31 December 2025.
The Company’s principal activity during the year was the provision of investment management services.
The Company’s principal activity during the year was the provision of investment management services.
The Directors are satisfied with the results for the year. Fee income was lower than the prior year as performance was not as strong within client portfolios.
The Company is focused on investment returns as a means to maximise fee income. There are no anticipated changes to the business conducted by the Company for the foreseeable future.
The Company is focused on investment returns as a means to maximise fee income. There are no anticipated changes to the business conducted by the Company for the foreseeable future.
Investment risk
The principal risk facing the Company relates to the performance of the investments it manages. Adverse market movements may reduce assets under management and, consequently, the level of fee income generated.
Credit risk
Credit risk arises from the potential default of counterparties. The Directors consider the Company’s exposure to credit risk to be low, reflecting the nature of its counterparties and the absence of any history of default on receivables.
Foreign currency risk
The Company is exposed to foreign currency risk as its fee income is denominated in US dollars rather than sterling. Movements in exchange rates may therefore affect reported revenue and profitability.
Interest rate risk
Interest rate risk represents the potential impact of changes in interest rates on the Company’s income. Lower interest rates would reduce the level of investment income earned on cash balances. The Directors currently consider the Company’s exposure to interest rate movements to be small.
Liquidity risk
The Company is required to maintain appropriate levels of net liquid assets in order to comply with FCA capital adequacy requirements. The Directors monitor liquidity on an ongoing basis and are satisfied that cash resources remain comfortably in excess of regulatory requirements.
The principal risk facing the Company relates to the performance of the investments it manages. Adverse market movements may reduce assets under management and, consequently, the level of fee income generated.
Credit risk
Credit risk arises from the potential default of counterparties. The Directors consider the Company’s exposure to credit risk to be low, reflecting the nature of its counterparties and the absence of any history of default on receivables.
Foreign currency risk
The Company is exposed to foreign currency risk as its fee income is denominated in US dollars rather than sterling. Movements in exchange rates may therefore affect reported revenue and profitability.
Interest rate risk
Interest rate risk represents the potential impact of changes in interest rates on the Company’s income. Lower interest rates would reduce the level of investment income earned on cash balances. The Directors currently consider the Company’s exposure to interest rate movements to be small.
Liquidity risk
The Company is required to maintain appropriate levels of net liquid assets in order to comply with FCA capital adequacy requirements. The Directors monitor liquidity on an ongoing basis and are satisfied that cash resources remain comfortably in excess of regulatory requirements.
Turnover for the year amounted to £1,702,800 (2024: £3,009,268). Total equity as shown on the balance sheet amounted to £4,028,269 (2024: £4,046,161). The Directors believe that there are sufficient reserves for the Company to meet its on-going business requirements.
Page 1
Strategic Report (continued)
For the year ended 31 December 2025
Given the nature of the business, the Directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.
Directors' statement of compliance with duty to promote success of the Company
Directors' statement of compliance with duty to promote success of the Company
1.The Company seeks to maintain high levels of client satisfaction by delivering bespoke investment solutions. A disciplined and rigorous investment process, with a clear focus on delivering strong returns, underpins the value provided to clients.
2.The Company promotes a culture of openness and achievement for its employees. Its flat organisation structure supports a collaborative and stimulating working environment in which employees are encouraged to develop and perform at their best.
3.The company is committed to maintaining high standards of integrity and to complying with all applicable laws, regulations and recognised industry best practice.
This report was approved by the board on 24 April 2026 and signed on its behalf by:
Page 2
Directors' Report
For the year ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025 .
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The loss for the year, after taxation, amounted to £60,092 (2024 - loss £15,267).
The directors who served during the year were:
Page 3
Directors' Report (continued)
For the year ended 31 December 2025
The auditor, Buzzacott Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 24 April 2026 and signed on its behalf by:
Page 4
Independent Auditor's Report to the Members of Ratio Ventures Limited
For the year ended 31 December 2025
We have audited the financial statements of Ratio Ventures Limited (the 'company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In 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.
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.
Page 5
Independent Auditor's Report to the Members of Ratio Ventures Limited (continued)
For the year ended 31 December 2025
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.
Page 6
Independent Auditor's Report to the Members of Ratio Ventures Limited (continued)
For the year ended 31 December 2025
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:
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including
knowledge specific to wealth management businesses;
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including
knowledge specific to wealth management businesses;
∙we made enquiries of management as to where they considered there was susceptibility to fraud, and their knowledge of actual, suspected and alleged fraud;
∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial statements through discussions with the director and other management at the planning stage, and from our knowledge and experience of asset management businesses;
∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to misstatement, including with respect to fraud and non-compliance with laws and regulations; and
∙we focused our planned audit work on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including the Companies Act 2006, The Financial Services and Markets Act 2000, and taxation legislation.
We assessed the extent of compliance with the laws and regulations identified above and through:
∙making enquiries with management;
∙inspecting legal expenditure and correspondence throughout the year for any potential litigation or claims; and
∙considering the internal controls in place that are designed to mitigate the risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙determined the susceptibility of the company to management override of controls by checking the implementation of controls and enquiring individuals involved in the financial reporting process;
∙reviewed a reconciliation from bank exports to the trial balance for the year to identify unusual transactions, particularly in relation to expenditure;
∙performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any large variances from the prior period;
∙reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias on the part of the company's management;
∙carried out substantive testing to check the occurrence and cut-off of expenditure; and
∙tested the occurrence of revenue by agreeing a sample of entries in the nominal to supporting documentation.
Page 7
Independent Auditor's Report to the Members of Ratio Ventures Limited (continued)
For the year ended 31 December 2025
Auditor's responsibilities for the audit of the financial statements (continued)
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HMRC, the Financial Conduct Authority and the company's legal advisors.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's 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
130 Wood Street
EC2V 6DL
Page 8
Statement of Comprehensive Income
For the year ended 31 December 2025
Page 9
Balance Sheet
As at 31 December 2025
The financial statements were approved and authorised for issue by the board on 24 April 2026 and and were signed on its behalf by:
The notes on pages 13 to 22 form part of these financial statements.
Page 10
Statement of Changes in Equity
For the year ended 31 December 2025
Page 11
Statement of Cash Flows
For the year ended 31 December 2025
Page 12
Notes to the Financial Statements
For the year ended 31 December 2025
Ratio Ventures Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Clock House, 6 St. Catherine's Mews, London, United Kingdom, SW3 2PX.
2.Accounting policies
Page 13
Notes to the Financial Statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 14
Notes to the Financial Statements
For the year ended 31 December 2025
2.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's Balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Page 15
Notes to the Financial Statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
Analysis of turnover by country of destination:
Page 16
Notes to the Financial Statements
For the year ended 31 December 2025
Page 17
Notes to the Financial Statements
For the year ended 31 December 2025
Page 18
Notes to the Financial Statements
For the year ended 31 December 2025
10.Taxation (continued)
There are no factors affecting future tax charges.
Page 19
Notes to the Financial Statements
For the year ended 31 December 2025
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
Page 20
Notes to the Financial Statements
For the year ended 31 December 2025
Profit and loss account
The profit and loss account includes cumulative profits or losses net of any dividends paid.
The profit and loss account includes cumulative profits or losses net of any dividends paid.
Page 21
Notes to the Financial Statements
For the year ended 31 December 2025
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £7,055 (2024: £7,030). At the year end date £1,265 (2024: £2,041) remained due to the fund.
The prior year restatement for the company is due to reclassifying money market funds (MMFs) held from fixed asset investments to cash and cash equivalents to reflect the fact that these MMFs are readily convertible into cash with very low risks of changes in value. This resulted in an downward adjustment of £1,371,531 for fixed asset investments and an upward adjustment of £1,371,531 for cash and cash equivalents, with a total £nil effect on the balance sheet.
The company is a wholly owned subsidiary of Ratio Holdings Limited which is registered in Guernsey. The ultimate controlling party is Lorenzo Ferdinando Innocenti by virtue of shareholding in Ratio Holdings Limited.
Page 22